Yellow Cake buys another 343,000 pounds of uranium

Specialist uranium investment company Yellow Cake has purchased 343,053 pounds of triuranium octoxide in the market at a price of $29.15 per pound, it announced on Tuesday, for $10m (£7.07m).

It said it would take delivery of the triuranium octoxide at Cameco's Port Hope-Blind River facility in Ontario, Canada, in May.

In addition to the transaction, and as it had already announced, Yellow Cake had committed to purchase 3.45 million pounds of triuranium octoxide through the exercise of its option with Kazatomprom.

A delivery schedule between May and August would be agreed between Yellow Cake and Kazatomprom.

“It is expected that once these two transactions have completed, the company's uranium holdings will increase from 9.5 million pounds of triuranium octoxide to 13.31 million pounds, acquired at a volume-weighted average price of $24.05 per pound,” the board said in its statement.

At 1345 BST, shares in Yellow Cake were down 0.19% at 269.5p.