viewYellow Cake PLC

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."

Quick facts: Yellow Cake PLC

Price: 194 GBX

Market: AIM
Market Cap: £171.14 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Yellow Cake PLC named herein, including the promotion by the Company of Yellow Cake PLC in any Content on the Site, the Company receives from...



Union Jack's Biscathorpe-2 well 'much more promising than previously indicated'

Top stories from the Proactive Investors UK newsroom. Union Jack Oil (LON:UJO) has welcomed a review of the Biscathorpe-2 well in Lincolnshire, which has shown it to be much better than previously thought. The analysis highlights the presence of a 35 metre column of good quality oil and...

on 15/7/19

2 min read