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LONDON (Alliance News) - Uranium trader Yellow Cake PLC said Friday it has purchased 350,000 pounds of uranium from NAC Kazatomprom JSC a Kazakhstan-based uranium trader.
Yellow Cake paid USD23.3 per pound, equivalent to GBP18.2. This reflects the price offered to Yellow Cake on July 17 of USD8.2 million all to be paid in cash.
Transfer of the uranium into Yellow Cake's name will take place on August 23, and the uranium will be stored at Cameco Corp's Port Hope in Ontario, Canada.
Following the completion of this transaction, Yellow Cake will own 8.4 million pounds of uranium.
Yellow Cake aims to exploit a range of opportunities connected with owning uranium, such as the trading of uranium, optimisation of logistics associated with the trading of uranium, generating revenue from the lending of uranium, and uranium-based financing initiatives such as commodity streaming and royalties.
Chief Executive Andre Liebenberg said: "Market sentiment towards uranium continues to improve and after completing the current purchase, we will have acquired 8.44 million pounds of uranium at an average cost of USD21.10 per pound against a current spot price of USD26.11 per pound."
"The purchase of the additional uranium is consistent with Yellow Cake's stated intention of not holding additional cash on the balance sheet which is surplus to the company's working capital needs. We would like to thank Kazatomprom for its continued strong support as a reliable long-term strategic supplier to Yellow Cake," Liebenberg added.
