Yellow Cake Plc

Yellow Cake Plc_300x200

Primary ticker: AIM:YCA
Stage of development: Exploration, Development, Production
Primary minerals: Uranium
Project to promote: Physical Holding
Project location: Canada, France
Website: www.yellowcakeplc.com

Yellow Cake is a uranium focused company offering direct exposure to the spot uranium price without exploration, development, mining or processing risk. This is achieved through its strategy of buying and holding physical uranium. Yellow Cake’s key strategic advantage is its long-term contract with Kazatomprom, the largest, and one of the lowest cost producers of uranium globally. Yellow Cake currently holds 21.7Mlb of uranium.

Cash: USD Pro forma net cash US$23.5M
Debt: Nil

Major shareholders:
MM Asset Management 10.1%
Global X Management 6.9%
Interactive Brokers 5.1%
Kopernik Global Investors 4.4%
Hargreaves Lansdown 4.3% 
Management Ownership – 0.10%

Financials

Management Profile

Andre Liebenberg (CEO) – Andre Liebenberg is an experienced mining industry professional and has extensive investor marketing, finance, business development and leadership experience. Andre has spent over 25 years in private equity, investment banking, senior roles within BHP Billiton and most recently at QKR Corporation, where he was Chief Financial Officer. Andre’s previous roles within BHP Billiton included Acting President for BHP Billiton’s Energy Coal division, Chief Financial Officer for the Energy Coal division, the Head of Group Investor Relations and Chief Financial Officer for the Diamonds and Specialty Products division.

Carole Whittall (CFO) – Carole Whittall has 25 years’ management, corporate finance and mergers and acquisitions experience in the metals and mining sector. Most recently, she was Vice President, Head of M&A at ArcelorMittal Mining and a member of its Mining Executive Team, responsible for global M&A, government relations and corporate and social responsibility, and served as a board member of subsidiary companies and joint ventures. Previously, she was with Rio Tinto where she held various senior commercial and business development roles. Her prior career was with JP Morgan and Standard Corporate and Merchant Bank in corporate finance.

What is your rationale for taking part in 121 Mining Investment?

To promote Yellow Cake to new and existing shareholders and discuss the fundamentals of the uranium market.

What are your key goals in 3 months, 6 months, 12 months?

3 Months:
To maintain a strong share price and to look for opportunities to purchase a fixed quantity of material at a predetermined price.

6 Months:
Make selective additional purchases of uranium in the spot market or under our long term contract with Kazatomprom.

12 Months:
Maintain a share price at or better of NAV and meet new investors wanting to gain exposure in uranium.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

The biggest risk to Yellow Cake is price risk in the underlying commodity, uranium (U3O8).

What do you think makes your company such a compelling investment?

Yellow Cake offers investors direct exposure to the spot uranium price without exploration, development, mining or processing risk. This is achieved through its strategy of buying and holding physical uranium. The option with Kazatomprom allows the Company to purchase significant material at the spot price.

What are the top 3 key investor takeaways?

Clear supply and demand market fundamentals signalling an upward price move in uranium.
Zero exploration, development, mining or processing risk.
US$100m Purchase agreement with Kazatomprom.