Yellow Cake plc (LSE:YCA) has unveiled plans for a non-pre-emptive share placing to raise about $125 million. Proceeds will be used to purchase roughly 1.33 million pounds of uranium from Kazatomprom at a discounted rate. The initiative is part of the company’s ongoing strategy to strengthen its uranium portfolio as supply constraints and growing global demand for nuclear power tighten the market.
Management views the purchase as a timely investment opportunity, pointing to recent long-term U.S. power contracts and the increasing strategic importance of securing uranium supply.
About Yellow Cake plc
Yellow Cake plc is a uranium-focused investment vehicle dedicated to acquiring and holding physical uranium over the long term, while also engaging in selective commercial activities. Established by Bacchus Capital Advisers, the company maintains a framework agreement with Kazatomprom—the world’s leading uranium producer—giving it the right to make annual purchases at fixed prices. Yellow Cake aims to benefit from the persistent market mispricing of uranium, supported by the rising role of nuclear power as a low-carbon energy source and potential supply shortfalls.
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