Yellow Cake PLC - investor in uranium founded by Bacchus Capital Advisers - Pulls in USD125 million, or GBP103 million, from placement of 18.7 million new shares with existing and new institutional investors at a price of GBP5.50 per share. The placing via an accelerated bookbuild run by Cantor Fitzgerald, Canaccord Genuity and Berenberg was first announced after the London market close on Wednesday. The placing shares represent a 9.4% stake prior to the placing.
Chief Executive Andre Liebenberg says: "The recent positive momentum in the uranium price is indicative of the themes we have consistently set out, with supply demand fundamentals and a wider acceptance of the critical role nuclear energy will play in supporting our net zero ambitions both acting as long-term drivers. Looking ahead, we remain confident that spot and term prices will need to increase further to reach an incentive price which supports the construction of the new greenfield mines that are needed to meet mid and long-term uranium demand expectations."
The cash will be used to buy 1.5 million pounds of physical uranium under Yellow Cake's agreement with JSC National Atomic Co Kazatomprom. Yellow Cake already holds 18.9 million pounds of uranium, the key ingredient for nuclear power generation, and is awaiting delivery of 1.4 million more. Uranium currently has a spot price of USD70.50 per pound. Yellow Cake says its estimated proforma net asset value as of Tuesday is USD1.44 billion, or GBP5.91 per share.
Current stock price: 557.50 pence for GBP1.14 billion market capitalisation
12-month change: up 40%
By Tom Waite, Alliance News editor
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Yellow Cake (YCA)
