CEO Andre Liebenberg said on Monday that there was a “clear shift” in sentiment around the outlook for uranium. “We now see real opportunity for shareholders to benefit from the pending rebalancing of the uranium market.”

Following the recent upsizing of its share placement to $140-million, Yellow Cake has elected to exercise its full 2021, $100-million uranium purchase option with Kazakhstan major Kazatomprom at a price of $28.95/lb.

The Kazatomprom option represents 3.5-million pounds of additional U3O8 which will be delivered into storage as part of Yellow Cake`s long-term buy and hold strategy. The material will be delivered to Cameco`s Port Hope/Blind River facility in Ontario, Canada, between April and August.

In addition to fully exercising the 2021 Kazatomprom purchase option, Yellow Cake has agreed to purchase a further 440 000 lb of U3O8 at a price of $27.34/lb and will take delivery of the additional U3O8 during March 2021.

This, Yellow Cake said, removed more material from the already tightening spot market.