The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Useful insight from Quakes
While a February #Uranium 'month-end smash'💥🔨 pulled Spot #U3O8 down🪂 TradeTech reports that 6.5M lbs were traded in February🛒 at a weighted average of $97.10/lb⬆️ which was +$8.40 higher than the 6.8M lbs traded in January at an average of $88.70/lb.Trend is Up!
Thanks for the update to the NAV tracker to provide the "what if" scenario modelling the impact IF KAP were to fail to deliver in H1 2024.
It is reassuring to see the relatively low impact to NAV of 2.5% based on todays variables - spot, fx etc.
I suspect if KAP were not to deliver its obligation then the bullish impact on spot U price would more than offset the arithmetic impact on NAV of not delivering.
Worth a read together with Quakes commentary in the thread
https://twitter.com/duediligenceguy/status/1756076856162365498?t=96KFu0mK06imVuqWPMMZvw&s=19
Thank you very helpful. I'd include
https://www.youtube.com/watch?v=7Fw4jAfqtgc
Interview with Joe Kelly from Uranium Markets
1. https://x.com/quakes99/status/1746666112291586319?s=20
Useful reminder of KAP agreement
"When $YCA shares trade at a premium to NAV, $YCA can then notify $KAP that they wish to exercise their $100M purchase option at that day's published Spot price.⛏️ Under the terms of their agreement, $YCA then has 2 weeks to launch a financing to raise the $100M needed to close the deal. If successful at raising the full amount (past history shows that $YCA cash raises are usually oversubscribed within 24 hours) they then close the deal 2 weeks later. Over that 2 week interval the Spot price may have risen significantly higher, or not, but the price that $YCA pays on delivery from $KAP will be the price set 2 weeks prior."
2. Sunday Times article - don't expect new info however but may be of interest for those who can't access directly.
https://drive.google.com/file/d/1WBI92YzuViaobffmfxnWlybPcRe0Fx-_/view?usp=drive_link
2.
Not much info but the publicity can help as we hopefully enter the media phase.
https://www.thetimes.co.uk/article/90c35fd0-7123-482f-a9b2-4b89da0cee09?shareToken=ffa441dcb1154cc4da23076920944ea7
"....This small investor is jolly glad I told you about uranium last September when I paid 486p for shares in Yellow Cake (YCA), a £1.3 billion London-listed business that owns more than 20 million pounds of the metal, which equals almost 15 per cent of the annual global supply. Back then, I said: “The price could continue to rise if more countries decide to place greater emphasis on energy independence or carbon-free self-sufficiency.
Since then, YCA’s share price has surged, hitting 632p on Monday, when I bought some more. Priced at 696p on Friday, they are now my tenth most valuable holding
I'm a bit concerned that YCA may not get delivery in H1 24 of the last purchase.
BUT the impact on NAV is quite minimal c2%
https://twitter.com/andmillsy/status/1744765616244896022?t=vaVD4s5xWnfIOEwvm6PQDg&s=19
Thanks for sharing those tweets. All this increased uncertainty on supply, imho, heightens the likelihood of YCA being taken over.
I'm surprised the trading companies -likes of Vitol, Trafigura, Glencore, Cargill haven't entered the Uranium market.