LONDON (ShareCast) - (Sharecast News) - Long-term uranium investor Yellow Cake has taken delivery of 2,022,846 pounds of triuranium octoxide from Kazatomprom at the Cameco storage facility in Canada, it announced on Friday, following the exercise of its buyback option.
The AIM-traded firm exercised the option with Kazatomprom to acquire 2,022,846 pounds of triuranium octoxide for $43.25 (£34.65) per pound.

It took delivery of the material at the Cameco storage facility on 19 May, with Kazatomprom delivering the triuranium octoxide in accordance with the agreed schedule.

Yellow Cake said it currently holds 17,855,601 pounds of triuranium octoxide in storage in Canada and France.

In addition, it entered into a previously-announced agreement to purchase 950,000 pounds of triuranium octoxide from Kazatomprom to be delivered to the Cameco facility by 30 June.

On completion, Yellow Cake said it would hold 18,805,601 pounds of triuranium octoxide in storage in Canada and France.

"Yellow Cake's estimated pro forma net asset value on 19 May was 396p per share, or $908m, assuming 18.81 million pounds of triuranium octoxide valued at a spot price of $47.40 per pound, and cash and other current assets and liabilities," the board said in its statement.

At 1134 BST, shares in Yellow Cake were up 5.16% at 383.4p.

Reporting by Josh White at Sharecast.com.

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