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(Sharecast News) - Long-term uranium investor Yellow Cake reported an estimated net asset value of 434p per share, or $964.5m, at the end of its second quarter on Thursday, consisting of 18.81 million pounds of triuranium octoxide valued at a spot price of $50.50 per pound, and cash and other current assets and liabilities of $14.8m.
The AIM-traded firm said that during the three months ended 30 June, it took delivery of 2.97 million pounds of triuranium octoxide, funded with cash at bank that was already earmarked.
It exercised its option with Kazatomprom to buy back 2,022,846 pounds of triuranium octoxide from Kazatomprom at a cost of $43.25 per pound, or $87.5m in total.
That was received by the company at the Cameco storage facility in Canada on 19 May, in accordance with the agreed delivery schedule.
Under Kazatomprom's offer of 26 October 2021, the firm also entered into an agreement to purchase 950,000 pounds of triuranium octoxide for $47.58 per pound, for a total of $45.2m.
Yellow Cake said it received that at the Cameco facility on 30 June, also under the agreed delivery schedule.
On 4 April, Yellow Cake announced a share buyback programme to purchase up to $3m of its ordinary shares over 30 calendar days.
Given that its shares had traded at a "material discount" to its underlying net asset value since mid-January this year, the board said it launched the programme as a means of effectively acquiring exposure to uranium at a discount to the commodity spot price.
Under the programme, the company acquired 566,833 shares between 4 April and 6 May, at a volume-weighted average price of 415p per share or $3m in total.
Yellow Cake's operations, financial condition and ability to purchase and take delivery of triuranium octoxide from Kazatomprom, or any other party, remained unaffected by the geopolitical events in Ukraine, the board said.
All triuranium octoxide to which the firm had title and had paid for was held at the Cameco storage facility in Canada, and the Orano storage facility in France.
The value of triuranium octoxide held by Yellow Cake rose 4% over the quarter, to $949.7m as at 30 June.
Yellow Cake's estimated net asset value on 27 July was 416p per share or $926.8m, assuming 18.81 million pounds of triuranium octoxide valued at a spot price of $48.50 per pound, as well as cash and other current assets and liabilities.
"We continued to deliver on our stated strategy to buy and hold uranium for the long term, giving investors the opportunity to directly participate in the rise in the price of the commodity," said chief executive officer Andre Liebenberg.
"We now own almost 19 million pounds with a total market value approaching one billion dollars.
"Looking ahead, we reiterate our confidence in the long term uranium market fundamentals which provide such a compelling investment case."
Liebenberg said that was based on continued supply-side constraints squeezing production, together with growing demand for uranium.
"We also note the recent decision by the UK Government to approve the construction of the Sizewell C nuclear power plant.
"This highlights the shift in sentiment towards nuclear energy - governments worldwide are increasingly recognising the key role nuclear will play in our clean energy future and a vital tool to address carbon emissions.
"This shift in sentiment supports Yellow Cake's business case and strategy."
At the close on Thursday, Yellow Cake was up 2.63% at 366.6p.
Reporting by Josh White at Sharecast.com.
