Investment case

Yellow Cake was established to provide investors with long-term exposure to the uranium commodity and the opportunity to realise value from uranium ownership through a liquid and publicly-quoted vehicle. The global markets offer limited options for gaining exposure to the uranium commodity.

“Demand fundamentals continue to strengthen globally. From major expansion plans in North America, China and Europe to growing demand from industrial users and data centres, the necessity of nuclear power for clean, consistent baseload energy is clear. Conversely, future supply remains constrained as demand growth outpaces mine development timelines, pointing towards a widening supply gap unless significant investment flows into new production.” – CEO, Andre Liebenberg

Key fundamentals underpinning our investment case:

  • Buy and hold strategy – Yellow Cake purchases uranium and holds it for the long term in a market with a significant supply/demand disjuncture.
  • Pure exposure to the uranium commodity price – Provides liquid exposure to the uranium spot price, with no exploration, development or operating risk. Unlocks opportunities to realise value from ownership of U3O8.
  • Value accretive growth – Yellow Cake issues its shares at or above net asset value to acquire U3O8­ at the spot price, under its Framework Agreement with Kazatomprom, and in the spot market. The Framework Agreement allows Yellow Cake to purchase up to USD100m of U3O8 from Kazatomprom each year until the end of 2027.
  • Inventory stored in safe jurisdictions – Uranium holdings are stored in Canada and France.
  • Low-cost exposure – Yellow Cake’s structure and outsourced operating model minimise operating costs.
  • Strong board and management – The Board is committed to good governance and high ethical standards, and plays an active oversight role.