Yellow Cake, a London-listed uranium investment company, has announced a significant jump in the value of its physical uranium held and its net asset value per share in the fourth quarter. This increase can be attributed to the rise in uranium prices during the period.
According to the company, the value of its physical uranium held rose by 24% to $1.83 billion in the fourth quarter from $1.48 billion in the preceding quarter. This increase aligns with the spike in the spot price of uranium.
Furthermore, Yellow Cake's net asset value per share experienced a 15% growth, reaching £7.11 ($9.02) from £6.18. However, the depreciation of the sterling during this period limited the rise in net asset value.
Yellow Cake has placed an order for 1.5 million pounds of uranium from Kazatomprom, which is expected to be delivered in June. This will contribute to Yellow Cake's total holding of 21.7 million pounds.
The company acknowledges the limited supply of uranium globally and predicts that rising demand will continue to put pressure on prices in the near-to-medium term. This can be attributed to geopolitical factors, project ramp-up delays, and the increasing market share of nuclear power as a means to decarbonize the energy supply worldwide.
Chief Executive Andre Liebenberg expresses confidence in the outlook for uranium and for Yellow Cake as a company.
As of 1426 GMT, shares of Yellow Cake have increased by 1.5%, reaching 724.50 pence.
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