Yellow Cake Plc Uranium Market Overview
Uranium market update
July 2021
Cameco
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YELLOW CAKE PLC
Cameco reported (28 July 2021, Q2 Result Conference Call) Cigar Lake production could be as much as 12.0 Mlb in 2021
(subject to any further disruptions due to Covid-19 or forest fires in the area) with Cameco receiving "up to 6 Mlb"
Regarding 2021 market purchases, the company is forecasting 11-13 Mlb, which includes:
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volumes that have already been delivered
- material already under contract for 2021 delivery
pounds purchased from it's equity position (40%) in JV Inkai (Kazakhstan)
purchase of excess inventory from NUKEM
During 2021 Cameco is entitled to purchase as much as 5.3 Mlb from JV Inkai, representing 59.4% of the 2021 planned
production of 9.0 Mlb
Regarding the term market, the company reported an additional 7 Mlb had been added to their contract portfolio
supplementing the 9 Mlb secured earlier in the year - Since 2019 Cameco has executed over 60 Mlb of new term contracts
Sprott and UPC
On 28 April 2021, Uranium Participation Corporation (UPC) announced an agreement with Sprott Asset Management to
"modernize business structure and pursue US listing."
■ The proposed plan of arrangement would transform UPC into a closed end investment trust managed by Sprott Asset
Management (SAM), with UPC becoming a subsidiary of the Sprott Physical Uranium Trust ("SPUT").
On 26 May 2021, UPC announced the completion of a C$80.5 million (US$ 66.0 million) bought deal financing the net
proceeds of which will be used "to fund future purchases of U3O and/or UF6 and for general corporate purposes."
■ The proposed plan of arrangement was supported by UPC shareholders in a 7 July 2021 vote with 99.9% of the votes cast
supported the plan.
Sprott announced on 19 July 2021 that the proposed transaction has been completed and SPUT began trading on the
Toronto Stock Exchange.View entire presentation