Yellow Cake PLC – Final Results

Yellow Cake, a specialist company operating in the uranium sector, is pleased to announce its maiden financial report for the period ended 31 March 2019.

Highlights

• Value of underlying U3O8 has increased by 22% to USD217.4 million as at the end of March 2019 relative to acquisition cost of USD178.2 million
• Purchase of 8,441,385 lb U3O8 from National Atomic Company Kazatomprom JSC (“Kazatomprom”) during the period at an average cost of USD21.10/lb against a spot price as at the end of March 2019 of USD25.75/lb (1)
• Steady improvement in the market for U3O8, with the spot price increasing 13% from USD22.85/lb (2) at IPO to USD25.75/lb(1) at the end of March 2019
• Successful USD200 million (GBP151 million) capital raise in an oversubscribed IPO on the AIM market of the London Stock Exchange in July 2018
• Profit after tax of USD29.7 million for the period ended 31 March 2019
• Net asset value of USD2.93 (GBP2.25) per share as at 31 March 2019 (3)
• Since the end of March 2019, the Company has raised an additional GBP25.9 million (approximately USD33.9 million) through a placing of shares and acquired an additional 1.175 million lb uranium
• Net asset value (4) as at 31 May 2019 of USD2.70 (GBP2.14) per share, or US$238.2 million, consisting of 9,616,385 lbs of U3O8 valued at a spot price of US$24.10/lb (5), a derivative liability of US$2.8 million (6)and other net assets of US$9.2 million

1  Month-end spot price published by UxC LLC on 25 March 2019
2 Weekly spot price published by UxC LLC on 9 July 2018
3 Net asset value per share on 31 March 2019 is calculated based on net assets including the derivative financial liability per the statement of financial position divided by the number of shares in issue
4  Net asset value per share on 31 May 2019 is calculated assuming 88,215,716 ordinary shares in issue and the Bank of England’s daily exchange rate of 1.2602 on 31 May 2019
5   Month-end spot price published by UxC LLC on 27 May 2019
6   Estimated current value of the Kazatomprom repurchase option under the Framework Agreement, which is a potential liability of US$6.5 million and may only be exercised if the spot U3O8 price exceeds US$37.50 /lb for a period of 14 days during the period between 4 July 2021 and 30 June 2027

Andre Liebenberg, CEO of Yellow Cake, said;

“I am pleased to present our maiden set of full year numbers.  We have been active in the market, acquiring additional uranium on three separate occasions following our admission to the AIM market, taking our total uranium holdings to nearly 10 million pounds, in line with the strategy we set out at the time of our IPO. We continue to believe that the uranium market is structurally mis-priced and that prices will continue to rise in the long-term. Despite some continued volatility, market activity has justified our investment proposition, with the spot price increasing by 13% from USD22.85/lb at our IPO to USD25.75/lb at the end of March 2019. We continue to offer investors exposure to the uranium spot price without the operating risks associated with exploration, development and mining, and the market dynamics underpinning our thesis remain robust.”