Yellow Cake has nuclear confidence despite price volatility

(Alliance News) - Yellow Cake PLC on Tuesday said the value of its uranium reserves fell during the third-quarter, but remained optimistic about the future of nuclear power.

The Jersey, Channel Islands-based uranium mining company estimated the value of its mineral holdings was USD1.6 billion at December 31, down 11% from USD1.8 billion at September 30.

Consequently, Yellow Cake expects to report a net asset value decline for the third-quarter. Estimated NAV per share was 5.90 pence at December 31 versus 6.17p at September 30, down 4.4%.

The firm attributed the decline to a "marked" decrease in uranium spot prices, which also fell 11% during the third-quarter. The spot price was USD73.00 per pound at December 31, down from USD67.30 per pound at September 30.

Over the course of 2024, uranium prices decreased by 20%, as spot market volumes and annual transaction volumes for the mineral also fell.

"While some industry observers anticipate greater transaction volumes in 2025, continued price volatility can be expected," Yellow Cake said.

Nonetheless, the firm maintained a positive outlook for nuclear power, noting an annual rise in uranium spot prices to USD79.00 per pound at December 31, from USD68.00 per pound at the previous year-end.

Yellow Cake suggested the mineral's volatile price offered "compelling new entry points for investors".

"We expect to see uranium term contracting increase in 2025, especially among nuclear utilities in the US and Asia-Pacific region, while producers look to meet increased demand by developing higher cost greenfield projects," said Chief Executive Andre Liebenberg.

Yellow Cake shares were up 1.1% at 480.40 pence each on Tuesday afternoon in London.

By Holly Munks, Alliance News reporter

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