(Alliance News) - Yellow Cake PLC on Friday said it raised GBP61.8 million through placing and on Thursday saw a drop in its quarterly net asset value due to a decrease in uranium price.
The Jersey-based investor in uranium said a total of GBP61.8 million was raised from an oversubscribed placing of 15.0 million new shares pried at around GBP4.12 each.
It said the original placing aimed to raise USD50 million. "Demand was again considerable, supporting our view that this remains a compelling time to invest in uranium. Supply demand fundamentals, the increasing global acceptance of nuclear to support future energy security and the new theme of term market strength, all give us confidence in the long term momentum in the uranium price," said Chief Executive Andre Liebenberg.
Yesterday, Yellow Cake said the uranium spot price decreased to USD48.00 per pound on December 31 from USD48.25 per pound on September 31. "Total spot market volume during the quarter represented about 50% of the level during the comparable period in 2021," it explained.
The company said the spot price started to show strengthening in January breaking through USD50.00 per pound. It expects the spot price trend through the next quarter to continue to be dictated by global economic conditions and investor confidence in "the emerging role of nuclear power as a clean energy source".
Net asset value is estimated at GBP4.15 per share as at December 31, down 7.8% from GBP4.50 per share as at September 30. This is as a result of "the decrease in the uranium price and appreciation of sterling over the quarter," Yellow cake said.
Liebenberg added: "The outlook for uranium remains positive and the long term investment case remains compelling. This confidence is based on the on-going supply demand fundamentals which will continue to put upwards pressure on the uranium price, as well as the growing acceptance of the role nuclear power will have in the future energy mix."
Shares were down 4.2% at 409.40 pence each on Friday morning in London.
By Xindi Wei, Alliance News reporter
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Yellow Cake (YCA)