Yellow Cake was established to provide investors with long-term exposure to the uranium commodity through a liquid and publicly-quoted vehicle. The global markets offer limited options for gaining exposure to the uranium commodity.
Key fundamentals underpinning our investment case:
- Pure exposure to uranium – Provides liquid exposure to the uranium spot price, with no exploration, development or operating risk.
- Buy and hold strategy – Yellow Cake purchases uranium and holds it for the long- term in a market with a significant supply/ demand disjuncture.
- Access to volume, at spot – The long-term Framework Agreement with Kazatomprom provides access to USD100 million a year of U3O8 at the prevailing spot price.
- Storage 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 NAV).
- Strong board and management – The Board is committed to good governance and high ethical standards, and plays an active oversight role.