Yellow Cake (YCA) has raised £25.9m in an oversubscribed placing to fund the purchase of 1.18m pounds of uranium from Kazatomprom, at $25.88 (£19.76) per pound. At 215p a share, the sale to existing and new investors was made at a 5.3 per cent discount to the market price, or 4 per cent below the uranium storage vehicle’s net asset value at the end of March.
Chief executive Andre Liebenberg said the recent pullback in the spot price – from $29.25 a pound at the end of 2018 to $25.75 currently, according to miner Comeco – had created “an excellent window to add to our uranium inventory”.
Yellow Cake reiterated its view that the completion of a US investigation into uranium imports in the coming months could herald the return of US utilities contracting, which would be bullish for prices.
