Yellow Cake PLC - investor in uranium founded by Bacchus Capital Advisers - Announces share placing to raise $125 million, with the cash to be used to buy 1.5 million pounds of physical uranium under Yellow Cake’s agreement with JSC National Atomic Co Kazatomprom. The placing, announced after the London market close on Wednesday, will be conducted as an accelerated bookbuild run by Cantor Fitzgerald, Canaccord Genuity and Berenberg. It will be done at a fixed price of £5.50 per share.
‘We continue to have confidence in the long-term outlook for uranium and believe now is the right time to take up our 2023 option with Kazatomprom in full,’ says Yellow Cake Chief Executive Officer Andre Liebenberg. ‘This option, which we negotiated ahead of our [initial public offering] in 2018, allows us to purchase up to $100 million of uranium every year until 2027. By raising capital now, we will materially increase our current uranium holdings in line with our strategy.’
Yellow Cake already holds 18.9 million pounds of uranium, the key ingredient for nuclear power generation, and is awaiting delivery of 1.4 million more. Uranium currently has a spot price of $70.50 per pound. Yellow Cake says its estimated proforma net asset value as of Tuesday is $1.44 billion, or £5.91 per share.
Current stock price: 562.50 pence, closed up 2.7% in London on Wednesday for £1.15 billion market capitalisation
12-month change: up 41%
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