Friday, July 13, 2018
The post “Yellow Cake Debut” published on July 10, 2018, described the capital raising effort of one of the newest players in the uranium supply chain. Yellow Cake leadership brought the aspiring intermediary to the capital market at a critical time for uranium producers. The uranium market has been in an extended trough period since the industry peak in 2007. At that time considerable development had been undertaken and capacity was beginning to generate sufficient supply to create stockpiled inventories. As this bloated condition persisted, in 2011 the nuclear power and its uranium supply chain were shocked by a Pacific Ocean tsunami that led to a nuclear spill at the Fukushima Power Plant in Japan.
The world view of nuclear power shifted seemingly overnight, causing Japan as well Germany and others to take nuclear power plants offline. Demand for uranium dried up. These many years later, the industry is still working through excess inventories. Selling prices for U308 were gutted after the Fukushima incident and have remained at historic low levels.
Tuesday, July 10, 2018
Investors have a new opportunity for a stake in nuclear power. Last week a successful initial offering was staged by a new player in the uranium supply chain. Yellow Cake, plc. sold 76 million shares at £200 per share, raising £151 million (US$200 million). Uranium Participation Corporation (U: TO) took US$25 million of the deal, giving the Canada-based uranium speculator a 16% stake in the company. Yellow Cake is listed on AIM under the symbol YCA. In its third day of trading the stock closed up 1.25% from its debut.
Yellow Cake means to be a player in the uranium market, buying and holding a stockpile of the ‘yellowcake’ concentrate or U308 from which the company takes its name. The company proposes to act as an intermediary between uranium producers and nuclear utilities. Management has wasted no time in establishing relationships and investing its capital - moves that could set up a compelling investment opportunity for investors.
Friday, July 06, 2018
Last week Covanta (CVA: NYSE) opened a new materials processing facility in Indianapolis, increasing waste handling capacity by 500%. The waste handler has been in operation in the community for three decades, collecting and processing over 2,100 tons of solid waste every day to steam energy in a waste-to-energy incinerator. Citizen Thermal Energy buys the steam to heat the buildings of its commercial customers.
The new materials processing facility increases Covanta’s waste handling capacity. The company is targeting manufacturers in the Indianapolis area that are still sending wastes to landfills. Covanta wants to collect more waste as well as attract waste types unique to manufacturers that need special handling. With the new facility Covanta can handle liquid as well as solid waste and will be able to breakdown finished and packaged products.