·      The uranium spot price has begun to show strengthening in January breaking through US$50.00/lb. The spot price trend through the next quarter is expected to continue to be dictated by global economic conditions as well as investor confidence in the emerging role of nuclear power as a clean energy source.

·     Term contracting is expected to continue at levels above those experienced in the post-Fukushima era as nuclear utilities strive to diversify sources in order to reduce future dependence on nuclear fuel supplies from Russia and support Western fuel supply sources.  Increased uranium term prices can be anticipated as term contract demand rises.

Company Highlights

·     Yellow Cake's operations, financial condition and ability to purchase and take delivery of U₃O₈ from Kazatomprom, or any other party, remain unaffected by the geopolitical events in Ukraine. All U₃O₈ to which the Company has title and has paid for, is held at the Cameco storage facility in Canada and the Orano storage facility in France.

Andre Liebenberg, CEO of Yellow Cake, said:

"The outlook for uranium remains positive and the long term investment case remains compelling. This confidence is based on the on-going supply demand fundamentals which will continue to put upwards pressure on the uranium price, as well as the growing acceptance of the role nuclear power will have in the future energy mix. Perhaps more importantly we are seeing a new emerging theme in the uranium sector. We expect to see utilities look to diversify their sources in order to reduce future dependence on nuclear fuel supplies from Russia and support Western fuel supply sources. These new long-term contracts at higher price levels will be required to support new production and project expansions throughout the fuel cycle. Overall, this presents another strong rationale for the long term holding of uranium."

Uranium Market Developments and Outlook

Global Uranium Market

Long-term uranium price indicators responded to that contracting volume throughout 2022 with incremental improvement during the Quarter. The Ux 3-yr Forward price rose from US$54.50/lb (end of September) to US$56.50/lb at the end of the year and the 5-yr Forward price increased from US$58.25/lb to US$60.00/lb.  The Ux Long-Term Price reported at US$49.00/lb at the end of the third quarter and then strengthened to US$51.00/lb at the end of December.

Nuclear Generation / Uranium Demand

Uranium Supply

Nuclear Power Forecasts

Market Outlook

The spot price trend through the next quarter is expected to continue to be dictated by global economic conditions as well as investor confidence in the emerging role of nuclear power vis-à-vis climate change.  The uranium spot price has begun to show strengthening in January breaking through US$50.00/lb. 

Importantly, term contracting is expected to continue at levels above those experienced in the post-Fukushima era as nuclear utilities strive to diversify sources to reduce future dependence on nuclear fuel supplies from Russia and support Western fuel supply sources.  Increased uranium term prices can be anticipated as term contract demand rises.

Net Asset Value

ENQUIRIES: 

ABOUT YELLOW CAKE

Yellow Cake is a London-quoted company, headquartered in Jersey, which offers exposure to the uranium spot price. This is achieved through its strategy of buying and holding physical triuranium octoxide ("U₃O₈"). It may also seek to add value through other uranium related activities. Yellow Cake seeks to generate returns for shareholders through the appreciation of the value of its holding of U₃O₈ and its other uranium related activities in a rising uranium price environment. The business is differentiated from its peers by its ten-year Framework Agreement for the supply of U₃O₈ with Kazatomprom, the world's largest uranium producer. Yellow Cake currently holds 18.81 million pounds of U₃O₈, all of which is held in storage in Canada and France. 

FORWARD LOOKING STATEMENTS

Certain statements contained herein are forward looking statements and are based on current expectations, estimates and projections about the potential returns of the Company and the industry and markets in which the Company will operate, the Directors' beliefs and assumptions made by the Directors. Words such as "expects", "anticipates", "should", "intends", "plans", "believes", "seeks", "estimates", "projects", "pipeline", "aims", "may", "targets", "would", "could" and variations of such words and similar expressions are intended to identify such forward looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward looking statements or expectations. Among the factors that could cause actual results to differ materially are: uranium price volatility, difficulty in sourcing opportunities to buy or sell U₃O₈, foreign exchange rates, changes in political and economic conditions, competition from other energy sources, nuclear accident, loss of key personnel or termination of the services agreement with 308 Services Limited, changes in the legal or regulatory environment, insolvency of counterparties to the Company's material contracts or breach of such material contracts by such counterparties. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law or the AIM Rules.