TRADING STATEMENT AND NOTICE OF INTERIM RESULTS
21 February 2007
The Chairman's Statement to Yellowcake's AGM on 21 December 2006 noted that the Company's portfolio of investments in the uranium sector had risen at that time by 112.3% since commencing investment at the end of September 2005.
It further informed shareholders that the portfolio had been re-positioned to concentrate on emerging uranium exploration and development companies. The companies concerned are those selected by our Chief Executive as most likely to produce the future supplies of uranium urgently needed to satisfy increased world demand.
The Directors are pleased to advise that this revised policy has enabled the portfolio to accelerate strongly since the date of the AGM. Accordingly, in Sterling currency, the portfolio has now more than trebled and at the close of business on 19 February 2007 was worth 275% more than the net amount invested, in less than 17 months.
Yellowcake plc intends to announce its Interim Results for the period to 31 December 2006 on 21 March 2007 and provide a further update on performance together with detailed information on the main constituents of its investment portfolio. Meanwhile, the Company continues to negotiate the acquisition of direct stakes in selected uranium properties.
Notes to Editors
Nuclear Energy is currently undergoing a resurgence, following twenty years of "nuclear winter" during which the world relied on secondary supplies, the price of uranium stagnated and little exploration for new mined sources of the mineral was made.
Since 2002, new nuclear stations have begun to be constructed. According to the World Nuclear Association, currently there are 28 new stations under construction and a further 222 planned or proposed to add to the existing 435 in 39 countries which provide 16% of the world's electricity. Nuclear stations produce highly competitive energy without causing atmospheric pollution, clear benefits in a world increasingly concerned with global warming.
Consequently, demand for mined uranium oxide is rising fast. Annual demand is now some 180 m/t but the world's producers only mine some 105 m/t. The uranium spot price has risen by 120% since September 2005 and is projected to continue rising in the years ahead as the world increases its demand for electricity and the advantages of nuclear power generation become more widely recognised.
Yellowcake was launched in July 2005 to offer investors a professionally managed portfolio of selected uranium stocks in order to capture the growth which it foresaw in the uranium production, development and exploration industries. It also intends to invest in directly owned uranium deposits.
The Directors of the Issuer accept responsibility for this announcement.
Enquiries:
Yellowcake Plc
Robert Wallace, Chief Executive
Email: robert@yellowcakeplc.co.uk
Tel: 020 7638 8750
St Helen's Capital Plc
Barry Hocken, Director
Email: barry.hocken@sthelenscapital.com
Tel: 020 7628 5582