https://www.miningweekly.com

Yellow Cake CEO sees ‘clear shift’ in uranium sentiment

16th March 2021

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

London-listed Yellow Cake, a specialist company operating in the uranium sector, is increasing its uranium oxide (U3O8) holdings from 9.3-million pounds to 13.2-million pounds and is actively looking for further market opportunities to increase its exposure to the uranium price.

CEO Andre Liebenberg said on Monday that there was a “clear shift” in sentiment around the outlook for uranium. “We now see real opportunity for shareholders to benefit from the pending rebalancing of the uranium market.”

Following the recent upsizing of its share placement to $140-million, Yellow Cake has elected to exercise its full 2021, $100-million uranium purchase option with Kazakhstan major Kazatomprom at a price of $28.95/lb.

The Kazatomprom option represents 3.5-million pounds of additional U3O8 which will be delivered into storage as part of Yellow Cake's long-term buy and hold strategy. The material will be delivered to Cameco's Port Hope/Blind River facility in Ontario, Canada, between April and August.

In addition to fully exercising the 2021 Kazatomprom purchase option, Yellow Cake has agreed to purchase a further 440 000 lb of U3O8 at a price of $27.34/lb and will take delivery of the additional U3O8 during March 2021.

This, Yellow Cake said, removed more material from the already tightening spot market.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION