Yellow Cake PLC - investor in uranium founded by Bacchus Capital Advisers - Net asset value on March 31, the end of the company’s financial year, is $1.88 billion in total, or £6.88 per share, up 82% and 63%, respectively, from $1.04 billion and £4.23 a year before. Yellow Cake holds 21.7 million pounds of U3O8 - a compound of uranium known as yellowcake - as of Wednesday, up from 20.2 million on March 31. Yellow Cake bought that uranium at an average cost of $34.64 per pound, while the spot price was $87 on March 31, up 72% from $50.65 a year before. The price hit $107 per pound in February, pushing the value of Yellow Cake’s holdings briefly above $2 billion.
‘Simply put, uranium supply continues to lag demand following years of underinvestment and mine closures, further exacerbated by the rapid expansion of the global nuclear reactor fleet, with China alone planning to add up to as many as 150 new reactors by 2040,’ says Chief Executive Officer Andre Liebenberg.
Pretax profit in the recent financial year is $727.0 million, swung from a loss of $102.9 million the year before, thanks to uranium’s price rise. Yellow Cake declares no dividend and says it doesn’t expect to declare dividends ‘on a regular or fixed basis’.
Current stock price: 536.41 pence for £1.16 billion market capitalisation
12-month change: up 26%
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