Yellow Cake PLC on Tuesday noted a jump in the price of uranium, driven by limited availability of near-term inventory considered as available for sale.

The investor in uranium founded by Bacchus Capital Advisers said the uranium price rose to $74.00 per pound on September 30 from $56.00 on June 30.

The company said factors playing a role are geopolitical risks with a number of producing countries such as Russia and Niger and growing nuclear utility concerns regarding future production of sufficient uranium for operating and planned nuclear reactors.

Yellow Cake added it estimates its net asset value to be £6.18 as at September 30, up 37% from £4.50 at June 30.

Chief Executive Officer Andre Liebenberg said: ‘The supply demand fundamentals we have set out previously remain as relevant today as ever. Supply remains constrained, while demand is growing worldwide, driven by both what is now a general acceptance of nuclear as key to achieving our global net zero ambitions, but also more recently concerns about the short-term viability of renewables. We continue to be confident in the long-term outlook for uranium.’

Yellow Cake shares were 0.7% higher at 551.50 pence each on Tuesday morning in London.

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