Yellow Cake market outlook "cautiously positive" as demand grows
Yellow Cake PLC on Monday said its uranium holdings have increased in value during the latest quarter, and expects growing demand to come up against "increasingly constrained" supply.
Yellow Cake reported a net asset value of 634 pence per share as at June 30, up 0.2% from 633p at March 31.
Yellow Cake shares traded 1.5% higher at 544.40p on Monday morning in London.
The Bacchus Capital Advisers-founded physical uranium investor and holder said the value of its uranium holdings increased by around 1.5% over the three months ended June 30, to USD1.97 billion from USD1.94 billion three months prior.
It said this reflected its acquisition of an additional 100,000 pounds of triuranium octoxide, and the uranium spot price increasing to USD84.85 per pound from USD83.95.
Yellow Cake noted that it repurchased 896,000 ordinary shares under its up to USD10 million buyback programme commenced in June, at an average of 546.93p each, during the quarter. After June 30, it completed the programme on July 10, having bought back a further 467,976 shares.
Overall, the company repurchased 1.4 million shares at an average price of 544.41p for approximately USD10 million in total.
Yellow Cake said the uranium spot market experienced "relative stability...supported in part by financial buying activity," and was quoted in the "mid-USD80s/lb level". This followed "heightened volatility" in the three months ended March 31.
"The long-term price reached USD94.00/lb, an increase of nearly 10% in the first six months of 2026, underscoring utilities' increasing focus on securing future supply as the market tightens," Chief Executive Andre Liebenberg noted.
Looking ahead, the company views market sentiment as "cautiously positive", due to nuclear power capacity forecasts increasing and a continued "robust pace" of short-term reactor building, especially in China. It also noted that in the longer term, nuclear fuel procurement requirements are likely to increase in countries like India and the US.
Yellow Cake expects uranium term contracting to increase during the rest of 2026, with firmer uranium prices potentially supported as "increasingly constrained future supply" meets growing demand.
"Demand fundamentals continue to strengthen globally," Liebenberg commented. "From major expansion plans in North America, China and Europe to growing demand from industrial users and data centres, the necessity of nuclear power for clean, consistent baseload energy is clear...demand growth is outpacing mine development timelines, pointing towards a widening supply gap unless significant investment flows into new production."
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