Yellow Cake

Primary ticker: AIM:YCA
Stage of development: /
Primary minerals: Uranium
Project to promote: /

Live financials

Yellow Cake is a uranium focused company offering direct exposure to the uranium price without exploration, development, mining or processing risk. This is achieved through its strategy of buying and holding physical uranium. In 2018 Yellow Cake listed on AIM, raising US$200m and purchased 6% of the 2018 global production from Kazatomprom. 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. The contract enables the company to acquire uranium at a price to be agreed prior to announcing the intended purchase, or any associated financing, enabling the company to acquire substantial volumes of uranium at undisturbed prices. Since the 2018 IPO Yellow Cake has purchased 9.62 mmlb of uranium at an average price of US$21.68 /lb.

Management Profile

Andrew Liebenberg – CEO
Andre 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.

Carole Whitall – CFO

Carole is a director and co-founder of Mining Strategies Limited, which provides M&A and transaction advisory services to the metals and mining sector. Most recently, she was Vice President, Head of M&A at ArcelorMittal Mining and member of its Mining Executive Team, responsible for global M&A.

What is your rationale for attending 121 Mining Investment?

Yellow Cake is seeking equity investors who are looking to gain exposure to the uranium price without exploration, development, mining or processing risk. The Company is looking to broaden investor interest in Yellow Cake and prepare market support for any future equity raises.

What recent news would you like to highlight to investors attending?

▪ IPO: July 2018 – Raised US$200 mm – Purchased 8.1 mmlb U3O8 at US$21.01 /lb
▪ August 2019 – Purchased 350 klb U3O8 at US$23.30 /lb
▪ April 2019 – Raised US$33.9 mm
▪ June 2019 – Purchased 1.175 mmlb U3O8 at US$25.88 /lb
▪ October 2019 – Option to implement a share buyback program
▪ Current total holding of U3O8 – 9.62 mmlb acquired at an average price of US$21.68 /lb

What are your key goals for the next 3, 6 and 12 months?

3 Months:
To educate new investors on the supply and demand disconnect in the uranium market

6 Months:
Market the company to promote buying on market, and have a share price that trades above NAV

12 Months:
Execute the US$100mm option agreement with Kazatomprom to purchase uranium

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

The company faces challenges at a macro level which is reflected the share price trading below NAV. Yellow Cake will look to buy uranium when it is trading at a premium to NAV

In a sentence, what do you think makes your company such a compelling investment?

The uranium market has a spot price market, and a mid-term and long-term contracting market which are all priced differently. We are currently valued at the spot price which is the lesser of the three prices.