REG - Yellow Cake PLC - DELIVERY OF URANIUM

Yellow CakeAnnouncement

20/05/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220520:nRST1851Ma&default-theme=true

RNS Number : 1851M  Yellow Cake PLC  20 May 2022

20 May 2022

Yellow Cake plc ("Yellow Cake" or the "Company")

DELIVERY OF URANIUM

 

Yellow Cake, a specialist company operating in the uranium sector holding
physical uranium for the long term, is pleased to announce that it has taken
delivery of 2,022,846 lb of U(3)O(8) from Kazatomprom at the Cameco storage
facility in Canada, following the exercise of the Company's Buyback Option.

As previously announced, the Company exercised its Buyback Option with
Kazatomprom in terms of which it acquired 2,022,846 lb of U(3)O(8) from
Kazatomprom at a price of US$43.25/lb. The Company took delivery of this
material at the Cameco storage facility in Canada on 19 May 2022. Kazatomprom
delivered the U(3)O(8) in accordance with the agreed schedule.

Yellow Cake currently holds 17,855,601 lb of U(3)O(8) in storage in Canada and
France. In addition, the Company has entered into a previously announced
agreement to purchase 950,000 lb of U(3)O(8) from Kazatomprom to be delivered
to the Company at the Cameco storage facility in Canada by 30 June 2022. On
completion of this transaction, Yellow Cake will hold 18,805,601 lb of
U(3)O(8) in storage in Canada and France.

Net Asset Value

Yellow Cake's estimated proforma net asset value on 19 May 2022 was £3.96 per
share or US$908.0 million, assuming 18.81 million lb of U(3)O(8) 1  (#_ftn1)
valued at a spot price of US$47.40/lb 2  (#_ftn2) and cash and other current
assets and liabilities as outlined in the table below.

 

   Yellow Cake Estimated Proforma Net Asset Value as at 19 May 2022
                                                                                               Units
   Investment in Uranium
   Uranium oxide in concentrates ("U(3)O(8)") ((1)())                       (A)                lb                 18,805,601
   U(3)O(8) fair value per pound ((2))                                      (B)                US$/lb             47.40
   U(3)O(8) fair value                                                      (A) x (B) = (C)    US$ m              891.4

   Cash and other net current assets/(liabilities) (( 3  (#_ftn3) ))        (D)                US$ m              16.6
   Net asset value in US$ m                                                 (C) + (D) = (E)    US$ m              908.0

   Exchange Rate                                                            (F)                USD/GBP            1.2509
   Net asset value in £ m                                                   (E) / (F) = (G)    £ m                725.9
   Number of shares in issue less shares held in treasury(( 4  (#_ftn4) ))  (H)                                   183,104,339

   Net asset value per share                                                (G) / (H)          £/share            3.96

 

ENQUIRIES:

 Yellow Cake plc
 Andre Liebenberg, CEO            Carole Whittall, CFO
 Tel: +44 (0) 153 488 5200
 Nominated Adviser and Joint Broker: Canaccord Genuity Limited
 Henry Fitzgerald-O'Connor        James Asensio
 Gordon Hamilton
 Tel: +44 (0) 207 523 8000
 Joint Broker: Berenberg
 Matthew Armitt                   Jennifer Lee
 Detlir Elezi
 Tel: +44 (0) 203 207 7800
 Financial Adviser: Bacchus Capital Advisers
 Peter Bacchus                    Richard Allan
 Tel: +44 (0) 203 848 1640
 Investor Relations: Powerscourt
 Peter Ogden                      Molly Melville
 Tel: +44 (0) 7793 858 211

 

ABOUT YELLOW CAKE

Yellow Cake is a London-quoted company, headquartered in Jersey, which offers
exposure to the uranium spot price. This is achieved through its strategy of
buying and holding physical triuranium octoxide ("U(3)O(8)"). It may also seek
to add value through the acquisition of uranium royalties and streams or other
uranium related activities. Yellow Cake seeks to generate returns for
shareholders through the appreciation of the value of its holding of U(3)O(8)
and its other uranium related activities in a rising uranium price
environment. The business is differentiated from its peers by its ten-year
Framework Agreement for the supply of U(3)O(8) with Kazatomprom, the world's
largest uranium producer. Yellow Cake currently holds 17.86 million pounds of
U(3)O(8), all of which is held in storage in Canada and France.

 

FORWARD LOOKING STATEMENTS

Certain statements contained herein are forward looking statements and are
based on current expectations, estimates and projections about the potential
returns of the Company and the industry and markets in which the Company will
operate, the Directors' beliefs and assumptions made by the Directors. Words
such as "expects", "anticipates", "should", "intends", "plans", "believes",
"seeks", "estimates", "projects", "pipeline", "aims", "may", "targets",
"would", "could" and variations of such words and similar expressions are
intended to identify such forward looking statements and expectations. These
statements are not guarantees of future performance or the ability to identify
and consummate investments and involve certain risks, uncertainties and
assumptions that are difficult to predict, qualify or quantify. Therefore,
actual outcomes and results may differ materially from what is expressed in
such forward looking statements or expectations. Among the factors that could
cause actual results to differ materially are: uranium price volatility,
difficulty in sourcing opportunities to buy or sell U(3)O(8), foreign exchange
rates, changes in political and economic conditions, competition from other
energy sources, nuclear accident, loss of key personnel or termination of the
services agreement with 308 Services Limited, changes in the legal or
regulatory environment, insolvency of counterparties to the Company's material
contracts or breach of such material contracts by such counterparties. These
forward-looking statements speak only as at the date of this announcement. The
Company expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward looking statements contained herein to
reflect any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statements are
based unless required to do so by applicable law or the AIM Rules.

 

 1  (#_ftnref1)            Comprises 17.9 million lb of U(3)O(8)
held on 19 May 2022, plus 0.95 million lb of U(3)O(8) purchased from
Kazatomprom for delivery by 30 June 2022

 2  (#_ftnref2)            Daily spot price published by UxC, LLC on
19 May 2022

 3  (#_ftnref3)         Includes cash and other current assets and
liabilities of US$152.3 million as at 31 March 2022, less a cash consideration
of US$87.5 million due to Kazatomprom following             delivery of
2.02 million lb of U(3)O(8) on 19 May 2022, less a cash consideration of
US$45.2 million to be paid to Kazatomprom following delivery of 0.95 million
lb of U(3)O(8) by 30 June 2022, less US$3.0 million incurred in the repurchase
of the Company's shares under a share buyback programme conducted by the
Company between 4 April 2022 and 6 May 2022

 4  (#_ftnref4)            Net asset value per share on 19 May 2022
is calculated assuming 187,740,730 ordinary shares in issue less 4,636,331
shares held in treasury on that date

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFFFVIEEIALIF