Yellow Cake PLC Exercise of Repurchase Option and Buyback Option (0425T)
22 November 2021 - 6:00PM
UK Regulatory
TIDMYCA
RNS Number : 0425T
Yellow Cake PLC
22 November 2021
22 November 2021
Yellow Cake plc ("Yellow Cake" or the "Company")
Exercise of Kazatomprom Uranium Repurchase Option and Buyback
Option
Yellow Cake, a specialist company operating in the uranium
sector with a view to holding physical uranium for the long term,
confirms the exercise of the previously announced uranium
repurchase option by JSC National Atomic Company ("Kazatomprom")
and the subsequent, related exercise of the previously announced
uranium buyback option by the Company.
Under an existing arrangement (as previously disclosed in the
Company's admission document, annual reports and recent press
releases), Kazatomprom has an option to repurchase at the uranium
spot price (less an aggregate discount of US$6.55 million) up to
25% of the initial purchase volume (of 8,091,385 lb of U(3) O(8) )
which the Company purchased from Kazatomprom in July 2018 under its
ten-year framework agreement with Kazatomprom (the "Framework
Agreement") (the "Repurchase Option"). The Company has a
corresponding buyback option to purchase from Kazatomprom, at the
prevailing spot price, all or a portion of the volume repurchased
by Kazatomprom under the Repurchase Option (the "Buyback Option").
Kazatomprom's right to exercise the Repurchase Option arises only
once during the term of the Framework Agreement, for a period of 60
days, when certain conditions are met.
Following the conditions being met for Kazatomprom to exercise
the Repurchase Option, the parties have agreed that:
o Kazatomprom will exercise the Repurchase Option to repurchase
from the Company 2,022,846 lb of U(3) O(8) at a price of
US$43.25/lb, less a total aggregate discount of US$6.55 million.
Kazatomprom will take delivery of the 2,022,846 lb of U(3) O(8)
from Yellow Cake on 22 November 2021; and
o Yellow Cake will exercise the Buyback Option to purchase from
Kazatomprom the same quantity of U(3) O(8) at a price of
US$43.25/lb. Yellow Cake will take delivery of the 2,022,846 lb of
U(3) O(8) from Kazatomprom between March 2022 and April 2022.
The net impact of these transactions is expected to be a pay-out
by the Company to Kazatomprom of US$6.55 million.
ENQUIRIES:
Yellow Cake plc
Andre Liebenberg, CEO Carole Whittall, CFO
Tel: +44 (0) 153 488 5200
Nominated Adviser and Joint Broker: Canaccord Genuity Limited
Henry Fitzgerald-O'Connor James Asensio
Georgina McCooke
Tel: +44 (0) 207 523 8000
Joint Broker: Berenberg
Matthew Armitt Jennifer Wyllie
Varun Talwar Detlir Elezi
Tel: +44 (0) 203 207 7800
Financial Adviser: Bacchus Capital Advisers
Peter Bacchus Richard Allan
Tel: +44 (0) 203 848 1640
Investor Relations: Powerscourt
Peter Ogden Linda Gu
Tel: +44 (0) 7793 858 211
ABOUT YELLOW CAKE
Yellow Cake is a London-quoted company on AIM, headquartered in
Jersey, which offers exposure to the uranium spot price. This is
achieved through its strategy of buying and holding physical
triuranium octoxide ("U(3) O(8) "). It may also seek to add value
through the acquisition of uranium royalties and streams or other
uranium related activities. Yellow Cake seeks to generate returns
for shareholders through the appreciation of the value of its
holding of U(3) O(8) and its other uranium related activities in a
rising uranium price environment. The business is differentiated
from its peers by its ten-year Framework Agreement for the supply
of U(3) O(8) with Kazatomprom, the world's largest uranium
producer. Yellow Cake currently holds 14.86 million pounds of U(3)
O(8) , all of which is held in storage in Canada and France.
FORWARD LOOKING STATEMENTS
Certain statements contained herein are forward looking
statements and are based on current expectations, estimates and
projections about the potential returns of the Company and the
industry and markets in which the Company will operate, the
Directors' beliefs and assumptions made by the Directors. Words
such as "expects", "anticipates", "should", "intends", "plans",
"believes", "seeks", "estimates", "projects", "pipeline", "aims",
"may", "targets", "would", "could" and variations of such words and
similar expressions are intended to identify such forward looking
statements and expectations. These statements are not guarantees of
future performance or the ability to identify and consummate
investments and involve certain risks, uncertainties and
assumptions that are difficult to predict, qualify or quantify.
Therefore, actual outcomes and results may differ materially from
what is expressed in such forward looking statements or
expectations. Among the factors that could cause actual results to
differ materially are: uranium price volatility, difficulty in
sourcing opportunities to buy or sell U(3) O(8) , foreign exchange
rates, changes in political and economic conditions, competition
from other energy sources, nuclear accident, loss of key personnel
or termination of the services agreement with 308 Services Limited,
changes in the legal or regulatory environment, insolvency of
counterparties to the Company's material contracts or breach of
such material contracts by such counterparties. These
forward-looking statements speak only as at the date of this
announcement. The Company expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any forward
looking statements contained herein to reflect any change in the
Company's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are based
unless required to do so by applicable law or the AIM Rules.
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END
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