AGM STATEMENT
12 November 2007
At the Company’s AGM to be held today, the Chairman will make the following statement:
“I am pleased to report that Yellowcake is continuing to make strong progress in raising shareholder value through its investment activities in the global uranium mining sector.
The uranium spot price fell back from US$136 per pound to US$75 during the late summer. However, during the last few weeks it has rebounded to US$90 per pound and in our opinion is headed higher as the world’s utilities inevitably begin to resume ordering the supplies they need to provide continuous electricity supply. Some 80% of uranium supply is delivered on long-term contracts and the long-term price has remained markedly stable at US$95 per pound for most of the last six months.
Production difficulties continue to affect supply. Both the most recent suppliers to come on stream, Uranium One and Paladin Resources, have encountered mechanical setbacks at their newly commissioned mines, at Dominion in South Africa and Lager Heinrich in Namibia respectively. Additionally Uranium One has suffered shortages of acid at their South Inkai mine in Kazakhstan delaying their expected production there by up to a year.
Meanwhile, according to the World Nuclear Association, demand is set to rise by the construction of currently 34 new nuclear generating stations, with a further 81 on order or planned with funding.
We were able to take full advantage of the sharp fall in the prices of most uranium companies in mid August due to the world sub-prime liquidity crisis. Our selected purchases of stocks we made then, for example in Laramide Resources and in UEX Corp., have doubled or more in the intervening three months. Additionally, the recent strength of the Canadian and Australian dollars has further boosted the sterling value of our portfolio.
Assay results from the summer exploration at our Grease River project at the Athabasca Basin in Canada are due in mid-December 2007 and we will report to shareholders then.
The resurgence of the zero-emissions nuclear energy industry continues in an age increasingly concerned with global warming. Yet uranium mining is still under the radar of the majority of the investment community.
Yellowcake will continue to build value through its specialist focus in this exciting and fast-growing sector. We look forward to significantly expanding our portfolio of investments against a backdrop of renewed increases in uranium prices ahead”.
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