Yellow Cake Receives USD30 Million Worth Of Uranium In Canada

LONDON (Alliance News) - Uranium investor Yellow Cake PLC has received over a million pounds of ...

Alliance News 3 June, 2019 | 10:42AM
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LONDON (Alliance News) - Uranium investor Yellow Cake PLC has received over a million pounds of the commodity from Kazakhstan's NAC Kazatomprom JSC.

In mid-April, Yellow Cake exercised an option under its agreement with Kazatomprom to buy 1.2 million pounds of uranium at USD25.88 per pound. It has now been delivered to the Yellow Cake facility in Ontario, Canada, where it will be held in storage.

The total cost of the deal is USD30.4 million, the company added.

Chief Executive Andre Liebenberg said: "We are pleased to complete the purchase of additional uranium from Kazatomprom, in line with the strategy we set out at the time of our initial public offering, to buy and hold physical uranium and benefit from the clear long-term fundamentals of the commodity.

"We continue to expect we will see a steady and sustained rise in the price of uranium, despite near-term uncertainty which has resulted in some end users delaying major purchasing decisions. Our confidence in our model and the long-term outlook is unchanged."

Shares were 0.7% lower in London on Monday morning, at 208.50 pence each.

By George Collard; georgecollard@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Yellow Cake PLC Ordinary Shares 207.00 GBX 2.48 -
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