Proactive Investors - Run By Investors For Investors

Yellow Cake ups share placing to £25.9mln amid strong investor demand

“The recent pullback in the uranium price has provided us with an excellent window to add to our uranium inventory at an attractive price"
pounds sterling - investment
New Yellow Cake shares are being sold at 215p each

Yellow Cake PLC (LON:YCA) is raising £25.9mln, increased from £22.9mln, through a share placing in order to fund the purchase of at least 1mln pounds of uranium.

The company, a vehicle specifically set up to acquire and own physical uranium as an investment strategy, upgraded the funding after the original offer (announced yesterday) saw strong investor demand.

Via a framework agreement with Kazatomprom – a Kazakstan state-owned miner and the world’s largest producer of natural uranium – the London listed firm can buy at a price of US$25.88 per pound, and, it has the option to acquire up to US$100mln worth of uranium during 2019.

WATCH: Yellow Cake gives investors unique exposure to uranium

Yellow Cake said that the current uranium price represents a “compelling buying opportunity” as it sees the opportunity to take advantage of power utilities’ currently cautious approach to purchasing ahead of action by the United States, in its investigation into uranium imports.

In a statement on Friday, chief executive Andre Liebenberg said: "We welcome the support from both our existing and new shareholders to enable us to increase the size of our fundraising and consequentially to now purchase 1.175 mmlb of uranium at the firm price of US$25.88 per pound.

“The recent pullback in the uranium price has provided us with an excellent window to add to our uranium inventory at an attractive price.

“We are very confident in the long term fundamentals of the uranium market, where a combination of constrained supply, the run-off of long term contracts and growing demand outlook means we remain confident on the outlook for the uranium price."

View full YCA profile View Profile

Yellow Cake PLC Timeline

Related Articles

copper
May 31 2019
Chief executive Michael McNeilly said 2018 was a “transformational year” for the group w
Ilmenite ore
January 02 2019
The upgraded resource, which now stands at 101mln tonnes at 7.1% ilmenite, comes as the group prepares to publish a pre-feasibility study in the first quarter of 2019
coal
April 02 2019
Peel Hunt has a ‘buy’ recommendation and target price of 205p each on Anglo Pacific shares

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use