(Alliance News) - Yellow Cake PLC on Wednesday said it swung to an annual loss as a falling uranium spot price sent its uranium investments into the red from previous gains a year earlier.
In the financial year that ended March 31, the Jersey-based uranium investor reported a pretax loss of USD102.9 million, swinging from a profit of USD417.3 million a year earlier. Diluted loss per share also swung to USD0.56 from earnings of USD2.60 per share.
This broadly tracked its uranium investments swinging to a loss of USD96.9 million from a profit of USD424.1 million.
Net assets on March 31 ticked down to USD1.03 million from USD1.07 million a year earlier.
Yellow Cake said annual loss was primarily due to a 13% reduction in the spot price of uranium across its financial year to USD50.65 per pound.
Looking ahead, Yellow Cake said it remained "very excited" about the outlook for uranium and was confident in its strategy.
"Global financial market conditions may well result in short-term spot price volatility, but the longer term fundamentals of the uranium market continue to strengthen," said Chief Executive Officer Andre Liebenberg.
"These include the reduction in 'mobile' near-term uranium inventories, the significant increase in contracting activity in the uranium term market and the heightened focus on energy security. Low prices have led to supply concentration by origin and a growing primary supply gap.
"Yellow Cake is well positioned to deliver on our stated strategy of realising opportunities to create value for investors by increasing our [uranium] holdings when the share price is trading above net asset value."
Shares in Yellow Cake were down 0.3% to 416.20 pence each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News reporter
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Yellow Cake (YCA)
