November 10, 2024

Yellow Cake: A Nuclear Buying Opportunity

Yellow #Yellow

Nukleare Strahlungswarnschild und grünes Gras.

Evgeny Gromov/iStock via Getty Images

Overview

Yellow Cake plc. (OTCQX:YLLXF) is a London-quoted company listed on AIM. It was established in 2018 with the primary objective of offering investors an opportunity to invest directly in Uranium (U3O8). The Sprott Physical Uranium Trust (OTCPK:SRUUF) is the only other vehicle that offers a similar investment opportunity.

The Investment Case for U3O8

U3O3 price

U3O3 price (tradingeconomics.com)

TradingView Chart

U3O8 (blue) vs. Coal, Copper, Oil, Iron Ore (Grey) (tradingview.com)

Supply Constraints Primary Production

Secondary Production

a) The Carry Trade

b) The Nuclear Fuel Cycle: Underfeeding to Overfeeding

Conversion and SWU price increases

Conversion and SWU price increases (YellowCake)

Nuclear Fuel Cycle

Nuclear Fuel Cycle (YellowCake)

Demand Mismatch a) Inelastic medium-term demand

b) Growing long-term demand

c) Utility contracting cycle

Contract covering of Western Utilities

Contract covering of Western Utilities (YellowCake)

U3O8 price and long-term contracting volumes

U3O8 price and long-term contracting volumes (Kazatomprom)

Holdings of Sprott Physical Uranium Trust

Holdings of Sprott Physical Uranium Trust (sprott.com)

Why Yellow Cake?

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