Yellow Cake confident despite small decline in net asset value
By Josh White
Date: Friday 30 Jan 2026
(Sharecast News) - Yellow Cake reported a modest decline in net asset value in the quarter ended 31 December on Friday, reflecting a slightly weaker uranium spot price, while reiterating a constructive outlook for the uranium market amid accelerating global nuclear investment and persistent supply constraints.
The AIM-traded firm said the value of its uranium holdings fell 0.5% over the quarter to $1.77bn, as the uranium spot price edged down to $81.55 per pound from $82.00 at the end of September.
Estimated net asset value declined by the same margin to 603p per share, primarily due to the lower uranium price, partly offset by a weaker pound.
As at 31 December, Yellow Cake held 21.68 million pounds of triuranium octoxide, with total net assets of $1.95bn.
The company said it strengthened its capital position ahead of the quarter after completing an oversubscribed placing in late September, raising £129.6m in gross proceeds.
Following the placing, Yellow Cake exercised its 2025 purchase option with Kazatomprom, agreeing to acquire 1.33 million pounds of triuranium octoxide at $75.08 per pound for $100m in total, with delivery expected in the first half of 2026.
On completion, total uranium holdings were expected to rise to around 23 million pounds, with remaining proceeds earmarked for further opportunistic or strategic acquisitions.
Based on a uranium spot price of $101.25 per pound, Yellow Cake estimated a pro forma net asset value of 727p per share, or $2.41bn, as at 29 January, reflecting higher uranium prices since the period ended and adjusting for the outstanding Kazatomprom purchase commitment.
All uranium owned by the company is stored at Cameco's facility in Canada and Orano's facility in France.
Chief executive Andre Liebenberg said the global nuclear sector had moved decisively "from policy ambition to increased capital deployment," citing renewed support for nuclear power across multiple regions and rising demand linked to data centres and artificial intelligence.
"Despite accelerating demand and the global call to triple capacity by 2050, supply remains constrained," he said, adding that production shortfalls and development delays were intensifying the supply-demand imbalance.
Liebenberg also pointed to a shift in market sentiment towards the company's shares.
"I am therefore pleased that the market now recognises the scarcity of our holdings, with Yellow Cake trading at a premium to net asset value over the last three weeks," he said.
"This reflects both uranium's underlying strength and confidence in our position as a secure means of gaining exposure to the commodity."
Yellow Cake said uranium market fundamentals remained supportive, with spot prices showing reduced volatility during the quarter and long-term price indicators strengthening further.
The company argued that global uranium production continued to lag reactor requirements, increasing the need for utilities to secure long-term supply contracts, a dynamic it expected to place further upward pressure on uranium prices in both spot and term markets as 2026 progressed.
At 0932 GMT, shares in Yellow Cake were down 2.33% at 687.08p.
Reporting by Josh White for Sharecast.com.
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