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If I've update the sheet right, while Spot is $71.88:
Before the update 607.6p
After the update: 605.8p
>Just running through the placing numbers actually they issues $25mio more shares at 550 that aren't being invested in uranium so net affect is NAV went down 2p
Your math skill beats mine masplin!
>When will you kindly update the NAV sheet to reflect this ? WIll it be after RNS in a few days confirming the purchase contract ?
Will do, in the meanwhile my mental athematic tells me the raise and purchase is worth about +1p per share.
I'd really like to add a "current option exercise price" to the sheet which is the price we should expect that YCA can buy U3O8 at.
" Under the terms of the
68
Kazatomprom Supply Agreement, the spot price is set (using market indicators) two weeks
prior to any fundraise that the Company will undertake to fund such acquisition, enabling the
Company to purchase the U3O8 at an undisturbed price. The price will be paid after delivery
and each delivery will take place by book transfer at one of the Conversion Facilities (at the
election of the Company)."
There is a lot more detail in the listing document which can be found
https://www.yellowcakeplc.com/wp-content/uploads/2019/03/Yellow-Cake-Admission-Document.pdf
"Use of Proceeds : The Company primarily intends to use the proceeds of the Placing to fund the Kazatomprom Purchase. In addition, the Company will retain sufficient proceeds of the Placing to pay certain costs associated with the Placing, for working capital and general corporate purposes and to fund opportunistic purchases of U3O8 for value in the spot market." However it has been a while from my recollection since we purchased on spot. Would be nice to see a premium to NAV and a sale of treasury shares to get more fire power for spot purchase.
Snooz - unsue but will look around - I think Quakes made reference in the past but he wasn't quoting specifics from a contract.
When will you kindly update the NAV sheet to reflect this ? WIll it be after RNS in a few days confirming the purchase contract ? Thanks.
SGD27 - being able to buy below 550 was a surprise and hasn't lasted.
Just running through the placing numbers actually they issues $25mio more shares at 550 that aren't being invested in uranium so net affect is NAV went down 2p to ยฃ6.06 @ $71.50
Doesnt make sense to buy at 550 and sell at 554 which was the open!!!! Seems Sprott are moving spot $1-$1.5 each time they try to buy 100,000lb
Are the details of the KAZ option online - specifically the price determination - being able to buy at $65.5, is that last weeks Cameco weekly mid?
I expect a few of those taking up the offer at 550p will sell straight away for an instant profit, but I don't think that will hold things back for long. I took advantage of the dip :-)
Am I being dim but everything overnight seems to be positive and yet YCA down 2%
1. Sprott buy 160,000lb and still has 58mio of cash (=800,000lb)
2. Spot now 71.5 bid
3. YCA exercises option to buy at $65.50 so improving NAV at current Spot and increasing discount
4. GBPUSD lower
Discount now around 9%???
I sold some when it got to by $65 target a few weeks ago and just bough it all back
maybe i missed something?
"The Placing was conducted using the Company's existing share authorities. The Placing comprises 18,700,000 new Ordinary Shares, which will raise gross proceeds of approximately ยฃ103 million (approximately US$125 million). The Placing Shares being issued represent approximately 9.4% of the existing issued ordinary share capital (excluding treasury shares) of the Company prior to the Placing."
Because the uranium they are buying is at a price of $65.5/lb, not at current spot prices of $72/lb, they are effectively buying uranium at a 7.2% discount at YCA NAV equivalent of 550p, which makes the purchase NAV accretive with the last closing price of 562.5p.
I thought YCA needed to be in positive NAV before they could raise capital, maybe this was just triggered last week for a short time. Anyway looks to be a great bit of business to lock in the KAP option at $65.50, spot market is already $72 as I write. Who knows where the U308 price discovery will go in the weeks & months ahead.
And now even better :
Numerco 7100/7300
Fantastic news
ยฃ100 mil raise target for 1.5 mil lbs at $65.50
Check the rns I'm wrestling with my phone . .
Spotted by Dogberry on the URNP board:
https://greeninvesting.co/2023/09/russians-enter-global-uranium-spot-market-as-supply-crisis-hits/
News from Quakes and others.
Russia's #Nuclear reactor fuel maker & #Uranium procuring state-owned enterprise Rosatom๐ has apparently put out a #U3O8 market Request seeking to acquire more uranium!๐โ๏ธโ๏ธ๐๐ท๐บ Doesn't get much more bullish than that!๐ค ๐ So much for talk of an oversupplied Eastern market.๐๏ธ
7000/7200
> I know nothing about liquidly in spot market, but it may not be trivial to buy 2.5mio lb in current market.
By all accounts it would be difficult to buy a tenth of that size at the current spot level.
The Numerco prices (7000/7100) are just for 100,000lbs.
And discount widens to 8%.
Sput looks at about 1.5% discount from rough calculation.
Numerco 7000/7100
Currently can buy at just below 550