TIDMYCA
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 1 7 ,8 55 , 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 GBP3.96 per share or US$908.0 million, assuming 18.81 million
lb of U(3) O(8) [1] valued at a spot price of US$47.40/lb [2] and
cash and other current assets and liabilities as outlined in the
table below.
Yellow Cake Estimated Proforma Net Asset Value as at 19
May 2022
---------------------------------------------------------------------------
Units
Investment in Uranium
Uranium oxide in concentrates
("U(3) O(8) ") (1 () (A) lb 18,805,601
U(3) O(8) fair value per pound
(2) (B) US$/lb 47.40
(A) x (B)
U(3) O(8) fair value = (C) US$ m 891.4
-------------
Cash and other net current
assets/(liabilities) ( [3]
) (D) US$ m 16.6
(C) + (D)
Net asset value in US$ m = (E) US$ m 908.0
-------------
Exchange Rate (F) USD/GBP 1.2509
(E) / (F)
Net asset value in GBP m = (G) GBP m 725.9
Number of shares in issue
less shares held in treasury
( [4] ) (H) 183, 104,339
Net asset value per share (G) / (H) GBP/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
G ordon 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] 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] Daily spot price published by UxC, LLC on 19 May 2022
[3] 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] 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
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END
UPDFFFVIEEIALIF
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