London-listed Yellow Cake has elected to purchase 1.35-million pounds of uranium oxide (U3O8) at $48.90/lb from Kazatomprom as part of its 2022 purchase agreement with the Kazakhstan-based uranium major.
Under its framework agreement with Kazatomprom, Yellow Cake has the option to purchase up to $100-million of U3O8 a year from Kazatomprom at an undisturbed spot price, through to 2027.
Kazatomprom proposed the purchase price to Yellow Cake on January 25, enabling the company to subsequently complete its £62-million share placing and then exercise the option.
This represents 1.35-million pounds of additional U3O8 that is to be delivered into storage as part of Yellow Cake's long-term buy and hold strategy, increasing the company's total holdings to about 20.2-million pounds of U3O8.
The material will be delivered to the company's storage accounts at either Orano Cycle's Malvesi / Tricastin facility in France or to Cameco's Port Hope / Blind River facility in Ontario, Canada, in the second half of 2023.