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LONDON (Alliance News) - Uranium investor Yellow Cake PLC on Wednesday said the uranium market was strong during the third quarter of 2018, with positive conditions set to continue.
Yellow Cake joined the London Stock Exchange in July during the quarter, raising USD200 million.
The value of its underlying physical uranium, Yellow Cake said, rose 30% to USD230.9 million over the period, with the spot price on the market rising to USD27.35 a pound from USD22.85 since its IPO.
Yellow Cake's net asset value as at September 30 was 242 pence per share, compared to its IPO price of 200p.
The uranium market benefited from a reduction in output from Kazakhstan's uranium firm Kazatomprom and the continued suspension of operations from the McArthur River/Key Lake mine in Canada.
Increasing demand is the restarting of Japan's nuclear power stations and the growth of China's nuclear power programme - China has 43 operating reactors with 15 under construction.
Chief Executive Andre Liebenberg said: "We were delighted with the success of our listing and are pleased with the strong start we have made as a public company. The IPO of Yellow Cake clearly highlighted the significant emerging interest in uranium as a commodity.
"We remain confident in the investment case for uranium, an industry with very attractive long term fundamentals and high barriers to entry. With new-build nuclear power capacity outpacing closures, demand for uranium is expected to remain strong long into the future," Liebenberg continued.
"The combination of constrained supply and the run-off of long term contracts, means we remain positive on the outlook for the uranium price."
Shares were 1.7% higher on Wednesday at 243.95p each.
