Member Info for SEA7

Yellow Cake (YCA) - Uranium Investment Thesis Has Got Stronger

21 May 2022

https://www.youtube.com/watch?v=UY9n8o5CYyg

it was an off book P Actx trade reported through echo.

p - protected porftolio
actx agency cross.

I believe it means that an agency has sold the shares from someone who held through them, to someone else, who is also a client of the same agency - probably two people that knew each other.

The transaction was then reported to the exchange as an off book trade.

Government approvals and a license extension for Block 3/05 are anticipated to be granted, with the publication of the AIM re-admission document and resumption of trading anticipated to occur mid-year.

not long now...

spot price of $60 gives us about £5 a share NAV. Reversal will be seen as soon as the market settles and flows in to SPUT resume, taking it back above +1% NAV, where they raise more cash and soak up more spot volume

https://www.fnarena.com/index.php/2022/05/17/uranium-week-a-tale-of-two-markets/

More than 1mlbs of uranium was contracted in the mid-term delivery window by a variety of parties last week, TradeTech reports. The consultant’s mid-term price indicator remains at a stubborn premium over spot at US$61.00/lb. The long-term indicator remains at US$52.00/lb.

https://edition.cnn.com/2022/05/08/politics/us-russia-sanctions-media-companies-consulting-services/index.html

In addition to the export ban on Russian industrial services, the US also sanctioned Promtekhnologiya LLC, which makes weapons, including rifles used by Russian forces in Ukraine. The Nuclear Regulatory Commission will also no longer permit the export of uranium, plutonium or other nuclear-related products.

https://www.world-nuclear-news.org/Articles/DOE-working-on-its-uranium-strategy-Granholm

She also confirmed to the committee that the DOE would make purchases for the strategic uranium reserve - for which Congress allocated USD75 million in 2020 - during the present calendar year.

The USA currently imports most of the uranium used to power its nuclear reactors. According to data from the US Energy Information Administration, 47% of the uranium purchased in 2020 by owners and operators of the USA's civilian nuclear power reactors originated from Kazakhstan, Russia, and Uzbekistan. Uranium of Canadian and Australian origins together accounted for 34%.

https://english.alarabiya.net/business/energy/2022/05/05/US-working-on-uranium-strategy-weighs-ban-on-Russian-imports-Energy-secretary

Republican Senator John Barrasso, the top Republican on the Senate energy committee, asked Granholm at a hearing on President Joe Biden’s proposed FY2023 budget whether the president would ban imports of uranium used for US nuclear energy as a way to further weaken Russia.

“I’ll let the president make that statement but I can say that this is a point on which I think we have a lot of agreement. We should not be sending any money to Russia for any American energy or for any other reason,” she said.

https://www.icis.com/explore/resources/news/2022/05/09/10762069/russian-uranium-ban-would-hit-centraleast-europe-hard/

LONDON (ICIS)–Should a ban on Russian uranium imports be backed by the European Commission, the cost of obeying sanctions would likely be high for centraleast Europe.

https://www.foreignbrief.com/daily-news/russia-suspended-from-oecd-nuclear-energy-agency/

Added this morning again, with such a discount

and...

We now expect to purchase between 12 million and 14 million pounds in the uranium segment this year (previously 11 million to 13 million pounds) in order to maintain a working inventory with some additional sales/delivery commitments for both 2022 and 2023.

https://s3-us-west-2.amazonaws.com/assets-us-west-2/quarterly/CCO-2022-Q1-MDA-FS-and-Notes.pdf

We continue to meet our sales commitments from a combination of production, inventory and purchases. In the first quarter, we produced 1.9 million pounds of uranium at Cigar Lake and purchased 2.3 million pounds. The average unit cost of our purchases was $53.48 per pound ($42.06 per pound (US)). We have started to bring forward some of the approximately 13 million pounds we secured under long-term fixed-price purchase arrangements.

The arrangements are risk mitigation and made in a lower price environment for delivery in the 2025 through 2028 timeframe. With McArthur River/Key Lake returning to operation, and the planned reduction in Cigar Lake production extending its mine life, our need for these pounds to mitigate risk has been reduced. We will continue to balance this activity with our spot market purchases

Dated 4th may

https://www.etfstrategy.com/sprott-to-bring-its-uranium-mining-etf-to-europe-10339/

Toronto-based Sprott Asset Management is preparing to launch an ETF in Europe providing exposure to companies in the uranium mining industry.

The Sprott Uranium Miners UCITS ETF will list on London Stock Exchange in US dollars (URNM LN) and pound sterling (URNP LN) later in May.

When it suspended it was 14.5p - mcap £32m

20p opening might be conservative, depending on what the listing doc says.

dated 29th april....Germany has thrown its weight behind demands to sanction uranium imports from Russia and other parts of Vladimir Putin's civil nuclear industry in retaliation for his invasion of Ukraine, five EU diplomats told POLITICO.

https://www.politico.eu/article/russia-nuclear-power-uranium-plants-europe-imports-germany-sanctions-ukraine-war/

https://www.energy.gov/sites/prod/files/2020/04/f74/Restoring%20America%27s%20Competitive%20Nuclear%20Advantage-Blue%20version%5B1%5D.pdf

Enable NRC to deny imports of nuclear fuel fabricated in Russia or China for national security purposes: The Working Group recognizes the importance of protecting the fuel fabrication subsector from erosion due to the strategic action of Russian or Chinese stateowned enterprises. The NRC currently provides general licenses for imports of nuclear material, including from Russia and China. The Russian state-owned enterprise, TVEL, began a project in 2008 to develop replacement fuel for U.S.-origin reactors operating in the United States. While this path is not currently being pursued, TVEL could develop such replacement fuel in the near future. If this occurs, the Working Group supports swift action, via Executive Order to limit or ban the import of nuclear fuel fabricated in Russia or China, on national security grounds, in so far as fuel imports adversely impact the physical and economic security of the United States.

https://www.malcysblog.com/2022/04/oil-price-jog-petrotal-afentra-hurricane-empyrean-and-finally/

This looks like a cracking deal by Paul McDade and team with the entry into Angola at a cost of some $4/bbl and break-even at some $35/bbl. This looks like it pays back in less than three years at $75 oil as a material shallow water production asset and yet the accretive deal also brings with it potential significant exploration upside.

Expect the documentation to be published by June/July so one can expect a resumption in dealing in the shares shortly after that. This is going to be one to watch, no doubt. I am hoping to catch up with Paul McDade next week but the webcast was very positive indeed, watch this space.

thanks snooz - same here

from 2021 accounts....

The Company maintains the majority of its cash resources in US Dollars and converts funds raised in Sterling
to US Dollars as soon as practicable. However, prior to funds from a capital raise being settled, the Company
is exposed to fluctuations in the GBP/USD exchange rate, but only for short durations.