Yellow Cake PLC on Monday reported a growth in its net asset value per share in its second quarter, following the rise in the price of uranium.
The Jersey-based uranium investor said its NAV per share was up 6.4% on June 30 to £4.50 per share, from £4.23 per share quarter-on-quarter.
Net asset value on June 30 was estimated to be $1.13 billion, up 8.7% from $1.04 billion quarter-on-quarter.
Uranium spot price up to $56.00 a pound on June 30, from $50.65 on March 31. A growing focus on term uranium contracting is expected to be a factor in this increase in spot market demand.
Chief Executive Officer Andrew Liebenberg said: ‘We remain confident in the medium-term outlook for the price of uranium, based on the continued supply and demand fundamentals that we expect to drive further upward pricing pressure on the commodity in the second half of 2023.’
The company said that the Russian invasion of Ukraine had disrupted the uranium market, with restrictions on Russian-sourced nuclear fuel deliveries into the EU, UK, and US persisting.
‘A growing focus on term uranium contracting will be a contributing factor to the expected increase in spot market demand as nuclear utilities acquire additional strategic inventory to supplement multi-year purchase agreements under negotiation which are likely to be at prices above the prevailing spot market,’ said Yellow Cake.
Shares in Yellow Cake were up 1.0% at 420.00 pence in London on Monday morning.
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