Yellow Cake : Annual Report for the year ended 31 March 2020

ANNUAL

REPORT

for the year ended 31 March

2020

What

is yellowcake?

Yellowcake is a solid form of mixed uranium oxide that is generally yellow in colour. It is produced from uranium ore from mining or in-situ leaching. Yellowcake is shipped from the mine and processed at licensed facilities for conversion, enrichment and fabrication into nuclear fuel.

*Yellowcake photography contained within this report is courtesy of Kazatomprom.

1. Yellow Cake Annual Report 2020

Contents

Section 1

1. YELLOW CAKE AT
   A GLANCE
2. Investment case

Section 2

4 STRATEGIC REPORT

1. Highlights
2. What we do
3. Chairman's statement

1. Our strategy

1. Our business model

15 Environmental, social and governance

1. CEO statement

1. CFO's review

1. Risk management

1. Viability

Section 3

30 GOVERNANCE

30 Board of directors

1. Corporate governance report

1. Report of the Audit Committee

1. Directors' remuneration report

44 Annual report on Directors' remuneration

50 Directors' report

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

Section 4

1. FINANCIAL STATEMENTS
2. Financial statements

79 Corporate information

Yellow Cake Annual Report 2020

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Section 1 / Yellow Cake at a glance

Yellow Cake at a glance

Yellow Cake plc is a London-listed company that provides investors with direct exposure to the uranium market through our physical holding of uranium oxide

concentrate (U3O8).

Yellow Cake was established to create an opportunity for investors to profit from an anticipated rise in the uranium price arising from the short- and medium-term supply and demand asymmetry.

The Company has a long-term Framework Agreement for supply of U3O8 with Kazatomprom, the world's largest uranium producer. This enables Yellow Cake to access up to USD100 million of uranium annually from Kazatomprom at the spot price until 2027.

The Company has a low-cost outsourced business model that provides access to corporate functions and industry expertise.

We also aim to exploit opportunities arising from uranium ownership and uranium-based financial initiatives such as commodity location swaps, streaming and royalties and believe we are well positioned to do so.

Key points

London-listed on AIM

Headquarters in Jersey

Holds 9.62 million lb of U3O8

as at 31 March 2020 acquired at an average cost of USD 21.68/lb

URANIUM PRICE (USD/lb)

35

30

25

20

Mar 19

Jun 19

Sep 19

Dec 19

Mar 20

2 Yellow Cake Annual Report 2020

Investment case

Offers investors exposure to the uranium spot price without the operating risks associated with exploration, development, mining

or processing.

Creates liquidity for investors in a traditionally illiquid commodity.

Positioned to benefit from emerging supply-side discipline and increasing nuclear energy demand.

Low-cost outsourced business model.

Strong board and management.

Long-term Framework Agreement for the supply of U3O8 with Kazatomprom, the world's largest uranium producer.

Yellow Cake Annual Report 2020

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