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.

“The long-term fundamentals of the uranium market continue to strengthen”
– 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 US$100m 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 (<1% of net asset value).
  • Strong board and management – The Board is committed to good governance and high ethical standards, and plays an active oversight role.