Yellow Cake PLC plans to raise approximately US$125 million through a non-pre-emptive share placing to fund the purchase of 1.5 million pounds of uranium under its Kazatomprom Framework Agreement.

Target Information

Yellow Cake PLC (AIM: YCA) is a specialist company focused on the uranium sector, established by Bacchus Capital Advisers with the intent of holding physical uranium for the long term. The company aims to capitalize on the fundamental belief that uranium is mispriced in the current market, which leads to a lack of investment in new uranium supplies. Yellow Cake has structured its operations around a ten-year agreement with JSC National Atomic Company Kazatomprom, the world's largest uranium producer, allowing it to purchase up to US$100 million of uranium annually until 2027.

Currently, Yellow Cake holds approximately 18.81 million pounds of U3O8, with additional deliveries expected from previous agreements. With a plan in motion, the company intends to utilize its market position to increase its uranium holdings through a proposed non-pre-emptive placing of ordinary shares.

Industry Overview

In recent years, the uranium market has witnessed a surge in demand, primarily driven by a global push towards nuclear energy as a clean and sustainable power source. This interest is fueled by government strategies aimed a