Yellow Cake : Annual Report for the year ended 31 March 2023

Annual Report 2023

FOR THE YEAR ENDED 31 MARCH

U3O8

YELLOW CAKE AT A GLANCE

STRATEGIC REPORT

GOVERNANCE

FINANCIAL STATEMENTS

Contents

01

At a glance

1. Yellow Cake at a glance
2. Investment case

YELLOW CAKE ANNUAL REPORT 2023 1

02

Strategic report

1. Salient features
2. What we do

1. Chairman's statement

1. Our strategy

23 Environmental, social and governance

1. CEO's statement

1. CFO's review

1. Risk management

1. Viability

03

Governance

1. Corporate governance report
2. Board of directors

1. Report of the Audit Committee

1. Directors' remuneration report

1. Directors' report

1. Directors' responsibility statement
2. Independent auditor's report

04

Financial statements

1. Financial statements

1. Corporate information

YELLOW CAKE AT A GLANCE

STRATEGIC REPORT

GOVERNANCE

FINANCIAL STATEMENTS

Yellow Cake at a glance

Yellow Cake holdings and U3O8 price

Yellow Cake plc (the "Company") is a London-quoted company that provides investors with direct exposure to the uranium market through our physical holding of uranium oxide concentrate (U3O8). The holding creates an opportunity to profit from an anticipated rise in the uranium price arising from the short- and medium-term supply and demand asymmetry.

USD/lb

U3O8 (mlb)

70

30

60

U3O8 price

Yellow Cake U3O8 holdings

25

50

20

40

Average acquisition cost USD31.11/lb

15

30

20

10

10

5

0

0

May-18

Aug-18

Nov-18

Feb-19

May-19

Aug-19

Nov-19

Feb-20

May-20

Aug-20

Nov-20

Feb-21

May-21

Aug-21

Nov-21

Feb-22

May-22

Aug-22

Nov-22

Feb-23

	n Nuclear power is forecast to grow strongly to 2050 to meet	n As at 31 March 2023, Yellow Cake held 18.8 million lb of
	the world's growing energy needs and net zero carbon emission	U3O8, equivalent to 14.6% of 2022 global uranium production1.
	commitments, particularly in developing markets. The Russian	The Company's long-term Framework Agreement with
	invasion of Ukraine in February 2022 not only highlighted the	Kazatomprom, the world's largest global uranium producer2,
	concentrated nature of nuclear fuel supply but also increased the	enables Yellow Cake plc to access up to USD100 million of
	focus on national energy security and accelerated the shift away	uranium annually from Kazatomprom at the prevailing spot price
	from fossil fuels. Many countries have reassessed nuclear energy	until 2027.
	as a safe, secure, reliable and affordable source of electricity.		UxC Weekly, 2022 U3O8 Production Review, 15/05/23.
		1
		2	World Nuclear Association, Uranium and Nuclear Power in Kazakhstan (December 2022).
YELLOW CAKE ANNUAL REPORT 2023 2

YELLOW CAKE AT A GLANCE

STRATEGIC REPORT

GOVERNANCE

FINANCIAL STATEMENTS

Investment case

Pure exposure to uranium - Provides liquid exposure to the

uranium spot price, with no exploration, development or operating risk.

Storage in safe jurisdictions - Uranium holdings are stored in

Canada and France.

Buy and hold strategy

• Yellow Cake purchases uranium and holds it for the long- term in a market with a significant supply/ demand disjuncture.

Low-cost exposure

• Yellow Cake's structure and outsourced operating model minimise operating costs (<1% of NAV).

Access to volume, at spot - The long-termFramework Agreement

with Kazatomprom provides access to USD100 million a year of U3O8 at the prevailing spot price.

Strong board

and management - The Board is committed to good governance and high ethical standards, and plays an active oversight role.

YELLOW CAKE ANNUAL REPORT 2023 3

YELLOW CAKE AT A GLANCE

STRATEGIC REPORT

GOVERNANCE

FINANCIAL STATEMENTS

Salient features

Holding of 18.81 million lb of U3O8 as at 18 July 2023

(not including 1.35 million lb of U3O8 to be received in September 2023) acquired at an average cost of USD31.11/lb3.

Continued improvement in the outlook for U3O8

despite a decrease

in the spot price of 12.5% from USD57.90/lb as at 31 March 2022 to USD50.65/lb as at

31 March 2023.4

Net asset value of

USD1,035.3 million

(GBP4.23 per share)5

Applied the raise proceeds to exercise the

2022 Kazatomprom option to acquire a further

1. million lbs of U3O8. This additional uranium is expected to be received by 30 September 2023.
   On receipt, Yellow Cake's total holding of

1. million lbs will represent approximately 15% of 2022 global uranium production1.

Raised gross proceeds of

USD74.3 million

(GBP61.8 million)

during the financial year through a share placing in February 2023 and applied the proceeds to acquire additional U3O8 to be received post year-end.

as at 31 March 2023

(2022: USD1,069.0 million (GBP4.42 per share)).

Loss after tax of

USD102.9 million

for the year ended 31 March 2023 (2022: profit after tax of USD417.3 million) primarily due to a 12.5% reduction in the spot price and leading to a USD96.9 million decrease in the fair value of the Company's uranium holdings (2022: USD433.3 million gain).

INCREASE OF

4%

in the value of the Company's holding of U3O8 during

the financial year to USD952.5 million

as at 31 March 2023, as a result of a net increase in the volume of uranium held from 15.83 million lb of U3O8 to 18.81 million lb of U3O8, offset by the depreciation in the uranium price.

CONCLUDED A

USD3 million share buyback programme,

repurchasing 566,833 shares between 4 April and 6 May 2022 (now held

in treasury) at a volume weighted average price of GBP4.15 per share (USD5.27 per share) and a volume weighted average discount to net asset value of 10.4%, effectively acquiring exposure to uranium at a discount to the commodity spot price.

1. Average cost calculated based on a first-in,first-out methodology.
2. Based on the daily spot price of USD57.90/lb published by UxC LLC on 31 March 2022 and the daily spot price of USD50.65/lb published by UxC LLC on 31 March 2023.
3. Net asset value per share as at 31 March 2023 is calculated assuming 202,740,730 ordinary shares in issue less 4,636,331 shares held in treasury, the Bank of England's daily USD/GBP exchange rate of 1.2364 as at 31 March 2023 and the daily spot price published by UxC LLC on 31 March 2023.

YELLOW CAKE ANNUAL REPORT 2023 4