Yellow Cake reports sharp increase in uranium asset value

(Sharecast News) - Yellow Cake reported a sharp increase in the value of its uranium assets and a return to profit in its first half on Thursday, as rising prices and renewed investor appetite underpinned what the company described as a supportive backdrop for nuclear energy. The AIM-traded specialist uranium investment vehicle, which holds physical triuranium octoxide and engages in related commercial activities, said the value of its holdings rose 27.2% to $1.78bn in the six months to 30 September, reflecting a jump in the spot uranium price from $64.45 per pound to $82.00 per pound over the period.

Net asset value increased to $1.96bn, or 606p per share, from $1.41bn, or 505p per share, at the end of March.

The group recorded a profit after tax of $373.3m, reversing a $87.6m loss a year earlier.

Yellow Cake completed a heavily oversubscribed GBP130m share placing in late September, which enabled it to exercise its 2025 purchase option under its long-term supply agreement with Kazakhstan's Kazatomprom.

The company said it had elected to buy 1.33 million pounds of triuranium octoxide at $75.08 per pound, equivalent to $100m, with delivery expected in the first half of 2026.

On completion, Yellow Cake said it expected to hold 23 million pounds of uranium, with additional proceeds from the placing earmarked for further opportunistic purchases.

All paid-for inventory is stored with Cameco in Canada and Orano in France.

The company said its estimated pro forma net asset value as at 28 November stood at 574p per share, based on a spot price of $75.85 per pound and net assets of $1.82bn after accounting for the Kazatomprom purchase.

Chief executive Andre Liebenberg said policy momentum and constrained supply continued to strengthen the investment case for uranium.

"Global momentum behind nuclear energy continues to build, with governments, investors and industry increasingly aligned on its strategic importance," he said.

He noted that "primary production continues to lag annual demand, new mines are slow and costly to bring online, and recent downgrades from major producers highlight the challenges of expanding supply at pace."

Liebenberg added: "Long-term fundamentals therefore remain compelling, with growing reactor deployment, accelerating policy support and sustained demand forecasts.

"We believe our share price does not fully reflect this opportunity and we continue to monitor how it trades on a relative basis to our NAV."

He said Yellow Cake remained "strongly positioned to offer investors secure, direct exposure to a commodity entering what is anticipated to be a new phase of sustained, long-term growth."

At 1517 GMT, shares in Yellow Cake were down 0.36% at 536.06p.

Reporting by Josh White for Sharecast.com.