24th Sep 2025 09:23
(Alliance News) - Yellow Cake PLC on Wednesday said it plans to raise USD125 million via a placing to increase its stock of uranium, believing current prices offer a "compelling" buying opportunity.
The Jersey-based investment company which offers exposure to the uranium spot price said the placing will be conducted through an accelerated bookbuild with institutional investors at 564 pence per share.
Shares in Yellow Cake were down 0.6% at 564.00 pence each in London on Wednesday morning.
Yellow Cake said proceeds will fund the purchase of around 1.3 million pounds of physical uranium, fully utilising the purchase option for 2025 under the agreement with JSC National Atomic Co Kazatomprom, at a price of USD75.08 per pound, and for working capital.
The offer price represents a 7.1% discount to the spot price of USD80.80 per pound as at Tuesday, Yellow Cake pointed out. On Wednesday, uranium was trading at USD80.35 per pound.
Yellow Cake said the implied pro forma net asset value at the proposed purchase price is equivalent to 560p per share.
The firm believes that the current level of the uranium price offers a "compelling buying opportunity", with supply concerns combined with "significant" new demand from hyperscalers and the rapidly growing sector of data centres.
Chief Executive Andre Liebenberg said: "The supply-demand imbalance continues to intensify, driven by global nuclear energy expansion, persistent production constraints, escalating input costs, and increasing demand for secure supply, all of which reinforce the compelling investment case for Yellow Cake."
Canaccord Genuity Ltd is acting as sole bookrunner and Joh Berenberg, Gossler & Co KG and Panmure Liberum Ltd as joint co-managers. Bacchus Capital is acting as Financial Adviser in connection with the placing.
By Jeremy Cutler, Alliance News reporter
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