Yellow Cake Provides Quarterly Update Amid Uranium Price Volatility
Why we think this is neutral
The RNS provides a quarterly update on Yellow Cake's uranium holdings and net asset value, which were negatively impacted by an 11.7% decrease in the uranium spot price over the quarter. However, the long-term uranium price remained resilient, increasing by $1/lb to $80/lb. While the company's net asset value per share declined, the RNS does not contain any explicit profit upgrades or trading significantly ahead of expectations, limiting the sentiment score to NEUTRAL.
Key Points
- Uranium spot price decreased 11.7% over the quarter
- Net asset value per share declined 14.4% to £5.05
- Long-term uranium price increased $1.00/lb to $80.00/lb
- Estimated net asset value on 25 April 2025 was £5.07 per share
Summary
The uranium investment company reports a decline in its net asset value due to a drop in the spot uranium price, though the long-term price held up better.
Yellow Cake plc, a specialist group operating in the uranium sector, has reported its performance for the quarter ended 31 March 2025. The key highlights include:
- The uranium spot price decreased by 11.7% over the quarter, from $73.00/lb to $64.45/lb, negatively impacting the value of Yellow Cake's uranium holdings.
- Estimated net asset value per share decreased by 14.4% over the quarter, from £5.90 to £5.05.
- However, the long-term uranium price demonstrated resilience, increasing by $1.00/lb to reach $80.00/lb by quarter-end.
- Yellow Cake's estimated net asset value on 25 April 2025 was £5.07 per share or $1,466.5 million, based on a spot price of $66.85/lb.
Key Dates
30 June 2025
Q2 2025 Quarterly Update
GENERAL UPDATE