Yellow Cake has $20 million to buy uranium in spot market, says CEO

摘要

Yellow Cake Plc, the UK-listed physical uranium holding company, will have around $20 million remaining from proceeds of a recent share placement to buy uranium in the spot market, Yellow Cake CEO Andre Liebenberg said in an interview March 3. Yellow Cake said Feb. 25 in a statement on the London Stock Exchange that it will sell new shares to raise $110 million for the purchase of 3.5 million pounds of uranium from Kazakh state uranium mining company Kazatomprom at a price of $28.95/lb U3O8. However, due to "incredibly strong demand," the placement was increased to a total of $140 million, Liebenberg said March 3. "We were delighted to take more,” he said. Yellow Cake said Feb. 25 that it will use $100 million of the proceeds to buy the 3.5 million pounds under an existing supply agreement with Kazatomprom. Yellow Cake said it has the right to purchase $100 million worth of uranium annually from Kazatomprom over 10 years Another $10 million will be used to pay for "certain costs associated" with the share placement, while some will be used as "working capital and [for] general corporate purposes," it added.