Yellow Cake PLC (LON:YCA)

Yellow Cake PLC (LON:YCA)


Share Price
225.00 p
Change
2 (0.90 %)
Market Cap
£198.49 m
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Yellow Cake PLC

Yellow Cake is a uranium focused company offering direct exposure to the spot uranium price without exploration, development, mining or processing risk.

EPIC: YCA
Market: AIM:YCA
52-week High/Low: 260.000p / 196.000p
Sector: General Mining
Market Cap: £198.49 m
Website: www.yellowcakeplc.com
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Big Picture – A Deep Dive Examination of Yellow Cake PLC


Yellow Cake PLC Snapshot

Yellow Cake plc is a specialist company operating in the uranium sector, founded and established by Bacchus Capital Advisers (“Bacchus Capital”) to purchase and hold uranium oxide (“U3O8”), with the objectives of:

  • offering shareholders exposure to the uranium price through the purchase and storage of physical uranium; and
  • exploiting a range of expected opportunities connected with owning physical U3O8 and uranium based financial initiatives such as commodity streaming and royalties.


Our key strategic advantage is our long-term contract with NAC Kazatomprom JSC (“Kazatomprom”) the largest, and one of the lowest cost, producers of uranium globally. The contract enables us to acquire uranium at a price to be agreed prior to announcing the intended purchase, or any associated financing, enabling the company to acquire substantial volumes of uranium at undisturbed prices. This allows Yellow Cake shareholders to benefit from any uplift in the uranium price.

Yellow Cake’s management team is supported by 308 Services Limited, a uranium specialist focused on the uranium commodity markets.

INVESTMENT OBJECTIVE AND STRATEGY

Global markets offer limited options for gaining exposure to the uranium price. Yellow Cake is intended to be a uranium focused company without the exploration, development, mining or processing risks usually associated with an operating company.
Nuclear energy provides approximately 11% of global energy. However, a decade of declining uranium prices has resulted in significantly declining investment in exploration for uranium, impacting the development of new uranium mines, and resulting in projected supply deficits as global production falls below demand.

The supply gap that has been created is currently being covered by secondary sources, largely from enrichment providers underfeeding and inventories. However, secondary sources are declining and, due to the length of time required to develop new uranium mines, new production may not be sufficient to fill the supply deficit.

Yellow Cake will use its and its adviser’s expertise and market knowledge to generate value through:

  • the purchase and sale of uranium in both the spot market, through the Kazatomprom Contract and through any other long-term contracts entered into by the Company to generate value for shareholders;
     
  • other uranium-related transactions, including the acquisition of production or synthetic production, via streaming, royalties or similar mechanisms.

URANIUM MARKET

. Nuclear Power is a Key and Growing Element of the Global Green Energy Supply

Nuclear Power Capacity Trends / Uranium Demand

Natural uranium concentrates (U3O8) are utilised to manufacture fuel for nuclear power reactors.  Long-term electricity demands, coupled with plans for reactor construction, are the key indicators for future uranium demand.

Increased demand for energy, primarily in the form of electricity, is being driven by growing economies in non-OECD countries and the increased electrification of OECD economies, with increased demand expected to come from electric vehicles (“EVs”). In the UK, National Grid estimates that by 2030 EVs could require 3.5 – 8.0 GW of additional capacity, equal to 6% – 13% of the UK’s current capacity.

. Expected growth in energy demands




Click here for more information on the URANIUM MARKET.

Channel Islands.

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Contact

3rd Floor, Liberation House,
Castle Street,
St Helier,
Jersey,
Channel Islands JE1 1BL
+44 1534 885200

Media Enquiries: Powerscourt

+44 (0)20 7250 1446

SHAREHOLDER INFORMATION

  • Nominated Adviser and Joint Broker: Numis Securities Limited.
  • Joint Broker: Joh. Berenberg, Gossler & Co. KG, London Branch
  • Financial Adviser: Bacchus Capital Advisers Limited
  • English Solicitors to the Company: Milbank LLP
  • Jersey Solicitors to the Company: Mourant Ozannes LLP
  • Jersey Administrator: Langham Hall Fund Management (Jersey) Limited
  • Investor Relations: Powerscourt
  • Accountants: RSM
  • Registrars: Link Market Services (Jersey) Limited

Contact

3rd Floor, Liberation House,
Castle Street,
St Helier,
Jersey,
Channel Islands JE1 1BL
+44 1534 885200

Media Enquiries: Powerscourt

+44 (0)20 7250 1446

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