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Thanks Snooz seems like there is smoke and mirrors on "value accretive" however overall I feel getting U at $65.50 and only having a 2% discount for a placing is a reasonable outcome. Trying to get my head around the (negative) impact of raising GBP to secure USD based purcahses at a very low point for GBP v USD.
" 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.
News from Quakes and others.
Russia's #Nuclear reactor fuel maker & #Uranium procuring state-owned enterprise Rosatomπ has apparently put out a #U3O8 market Request seeking to acquire more uranium!πβοΈβοΈππ·πΊ Doesn't get much more bullish than that!π€ π So much for talk of an oversupplied Eastern market.ποΈ
Jay053... not a lot tbh. Bit of dialogue in the comments on the article.
"Unfortunately, the only tried and tested alternative, nuclear power, has been regarded as a no-no by many folk since the disaster at Fukushima, Japan, more than a decade ago.
But tsunamis are less of a worry in Europe than the Ukraine war, prompting some reappraisal of nuclear power and rising demand for the fuel that creates it, uranium. Step forward, Yellow Cake (YCA), which is another name for uranium oxide, and a Β£1 billion fund that yields no income but also avoids any exploration, mining, or processing risk because it concentrates on owning 18.8 million pounds of the stuff.
I paid 486p earlier this month for YCA shares that cost 549p on Friday. The price could continue to rise if more countries decide to place greater emphasis on energy independence or carbon-free self-sufficiency.
Equally, uranium supplies might also be squeezed if the Ukraine war affects exports from Kazakhstan, the Russian ally that produces 43 per cent of global supply, or the military coup in Niger, another big producer. No wonder some folk claim that geography β or geology β is destiny and that energy is the economy.
Either way, one thing is absolutely certain: winter is coming."
Sput bought 100k
Did that shift the market?
If so they still have $50m plus to deploy
There must be other buyers for that level of jump?
My exit for core holding was was $80 and aspiration was 5% discount.
Now I don't know....
It was certainly easier to trade in range -10% to -5%. Range now seems to be -5% to -2.5% with occasionall blips outside. Being out overnight seems a risk with U price volatility.
Recent GBP weakness v USD is increasing the GBP NAV and pushing the discount higher - notable today.
Trying to figure out when to trade. I sold some yesterday I had at 534. Only read this afterwards ....
https://x.com/Borg74/status/1704585424297963973?s=20
Sput at +1.6%
YCA last night at -5%
https://www.prweb.com/releases/tradetechs-uranium-spot-price-climbs-to-12-year-high-as-market-prepares-for-higher-demand-301931145.html
"The expectation for higher demand, combined with signs that the uranium production sector could contract further, have led spot uranium sellers to resist reducing their offer prices, with buyers exhibiting a willingness to pay higher prices," said TradeTech President Treva Klingbiel.
Found this worth a listen to. Especially the UXC interview at 48 mins. c1h25 min also quite interesting look back at previous bull and comparision with today.
https://youtu.be/ymEQp88edBs