London-quoted Yellow Cake plc has announced plans to buy a further 3 million pounds U3O8 (1154 tU), including 1 million pounds U3O8 from Kazatomprom in addition to that already covered in its option agreement with the Kazakh uranium producer. It also intends to buy some 2 million pounds of material sourced from CGN Global Uranium Limited.
Yellow Cake, which specialises in buying and holding physical stocks of uranium, yesterday completed a share placing which raised gross proceeds of about GBP109 million (USD150 million) which it intends to use to fund its purchases.
Delivery of the 1 million pounds U3O8 from Kazatomprom, at a price of USD47.58 per pound, is to take place by June 2022, the company said. “This will be above and beyond the company’s 2021 option under its agreement with Kazatomprom … which has already been fully exercised earlier this year,” it said.
The company also said it intends to buy 2 million pounds U3O8 from Curzon Uranium Limited, at a price of USD46.32 pound. Curzon is sourcing the U3O8 from CGN Global Uranium Limited, which sells uranium from the Husab mine in Namibia on the world market. That material is to be delivered to Yellow Cake’s account at Cameco’s Port Hope/Blind River facility in Canada before the end of this November.
Yellow Cake CEO Andre Liebenberg said the transaction highlighted “growing momentum” behind investor interest in uranium. “The successful close of this transaction enables us to acquire a further approximately 3 million pounds of uranium, bringing our total holdings to nearly 19 million pounds, which will have more than doubled during the course of 2021. We continue to believe our investment case is strong,” he said.
Yellow Cake has a long-term agreement with Kazatomprom under which it has the option to purchase up to USD100 million of uranium at market-related prices, subject to conditions. Kazatomprom has recently announced its own plans to participate in a physical uranium fund, ANU Energy OEIC Limited, established on the Astana International Financial Centre.
Yellow Cake’s headquarters are in Jersey.