Yellow Cake highlights uranium supply challenges but price to trend up

(Alliance News) - Yellow Cake PLC on Tuesday reported a increased net asset value, but expects uranium prices to stay "volatile".

The Jersey-based investment company, which offers exposure to the uranium spot price, said the recently released Nuclear Fuel Report 2025 highlights unprecedented projected growth in global nuclear capacity through 2040.

However the report, from the World Nuclear Association, also "reinforces industry concerns over tightening primary uranium supply".

Yellow Cake estimated that its NAV per share increased 5.0% to GBP6.06 as of September 30, from GBP5.77 at June 30.

Yellow Cake shares were 4.4% higher at 564.00 pence each on Tuesday in London.

The value of the firm's uranium holdings rose 4.5% to USD1.78 billion as at September 30, from USD1.70 billion as at June 30. The uranium spot price rose to USD82.00 per pound from USD78.50/lb.

Still, Yellow Cake noted that the spot price showed "notable volatility" in the three months, falling 9% on a monthly basis to USD71.10/lb at the end of July before increasing to USD82.00 at September 30. Longer-term price indicators also showed volatility, it said, but to a lesser extent.

Yellow Cake also highlighted its oversubscribed placing, which raised around USD175 million, and its subsequent purchase of 1.3 million pounds of U3O8 for around USD100.0 million under its framework agreement with Kazatomprom.

"Global nuclear power is expanding rapidly, from China's reactor buildout to Ethiopia's planned nuclear debut and the UK's 24 GW target by 2050," commented Chief Executive Andre Liebenberg. "The World Nuclear Association's latest biennial nuclear fuel market assessment predicts nuclear capacity will almost double by 2040. This anticipated growth in global nuclear generating capacity is unprecedented, reinforcing industry concerns over tightening primary uranium supply.

"Against this backdrop, we continue to deliver on our strategy...We believe the investment case for holding physical uranium remains very compelling. While short-term volatility may persist, long-term fundamentals signal higher prices, driven by utilities' rising purchases alongside nuclear's role in decarbonisation and energy security.

"Yellow Cake continues to be very well-positioned to benefit from this thematic trend."

By Emma Curzon, Alliance News reporter

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