REG - Yellow Cake PLC - Exercise of Kazatomprom 2022 Option

Yellow CakeAnnouncement

09/02/2023 07:00

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RNS Number : 4289P  Yellow Cake PLC  09 February 2023

9 February 2023

 

 

 

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

Exercise of Kazatomprom 2022 Option

Yellow Cake, a specialist company operating in the uranium sector, holding
physical uranium for the long term, is pleased to announce that following the
completion of the approximately £62 million share placing on 7 February 2023,
it has informed JSC National Atomic Company Kazatomprom ("Kazatomprom") that
it has elected to purchase 1,350,000 lb of U(3)O(8) at a price of US$48.90/lb
as part of its 2022 uranium purchase option under its agreement with
Kazatomprom (the "Framework Agreement"). The Company expects to take delivery
in the second half of 2023.

 

Kazatomprom Option

Under its Framework Agreement with Kazatomprom, Yellow Cake has the option to
purchase up to US$100 million of U(3)O(8) per year from Kazatomprom at an
undisturbed spot price, through to 2027.

The purchase price was proposed to the Company by Kazatomprom on 25 January
2023 (using spot market indicators), enabling the Company to subsequently
complete its approximately £62 million share placing and then exercise the
option at the agreed price under the Framework Agreement to purchase U(3)O(8)
as part of its 2022 option.

This represents 1.35 million lb of additional U(3)O(8) which is to be
delivered into storage as part of Yellow Cake's long term buy and hold
strategy, increasing the Company's total holdings to approximately 20.2
million lb of U(3)O(8).

This material will be delivered to the Company's storage accounts at either
Orano Cycle's Malvesi / Tricastin facility in France or to Cameco's Port Hope
/ Blind River facility in Ontario, Canada in the second half of 2023.  The
exact delivery date and location will be agreed between the parties.

 

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

 Communications Adviser: 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 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 18.81
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.

 

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