Yellow Cake reports 4.5pc uptick in uranium holding value
By Josh White
Date: Tuesday 28 Oct 2025
(Sharecast News) - Yellow Cake said in an update on Tuesday that the value of its uranium holdings rose 4.5% in the third quarter as uranium prices strengthened, while the company expanded its long-term holdings following a successful $175m capital raise.
For the three months ended 30 September, the value of the group's uranium portfolio increased to $1.78bn from $1.7bn at the end of June, reflecting a rise in the uranium spot price from $78.50 to $82.00 per pound.
Estimated net asset value per share rose 5% over the quarter to £6.06, up from £5.77 in June.
On a pro forma basis as of 27 October, Yellow Cake's estimated net asset value stood at £5.82 per share, or $1.86bn, assuming a uranium price of $77.50 per pound.
During the quarter, Yellow Cake completed an oversubscribed share placing of around 23 million shares, raising £129.6m.
The proceeds were used to exercise its 2025 uranium purchase option with Kazatomprom, acquiring 1.33 million pounds of triuranium octoxide at $75.08 per pound for a total of $100 million.
It said the uranium was expected to be delivered in the first half of 2026, taking the company's total holdings to 23 million pounds of triuranium octoxide.
Remaining funds would be deployed for further strategic and opportunistic purchases.
"Global nuclear power is expanding rapidly, from China's reactor buildout to Ethiopia's planned nuclear debut and the UK's 24 GW target by 2050," said chief executive Andre Liebenberg.
"The World Nuclear Association's latest biennial nuclear fuel market assessment predicts nuclear capacity will almost double by 2040.
"This anticipated growth in global nuclear generating capacity is unprecedented, reinforcing industry concerns over tightening primary uranium supply.
"Against this backdrop, we continue to deliver on our strategy. In September we raised approximately $175m to take up our 2025 option with Kazatomprom to purchase a further 1.3 million pounds of uranium, boosting our total holdings to 23 million pounds upon delivery.
"We believe the investment case for holding physical uranium remains very compelling."
Liebenberg added that while short-term volatility in uranium prices may persist, long-term fundamentals "signal higher prices, driven by utilities' rising purchases alongside nuclear's role in decarbonisation and energy security."
Yellow Cake said global uranium market dynamics continued to tighten through the quarter.
The World Nuclear Association and the International Atomic Energy Agency both raised long-term projections for global nuclear capacity, forecasting that output could nearly double by 2040.
At the same time, secondary uranium supplies were reportedly diminishing, while major producers such as Cameco and Kazatomprom had signalled constrained production levels due to operational and market-related factors.
All of Yellow Cake's uranium holdings are stored at Cameco's facility in Canada and Orano's facility in France.
The company said it remained well positioned to benefit from the continued re-rating of uranium prices amid growing demand from utilities, producers and financial investors seeking exposure to the nuclear fuel market.
At 1352 GMT, shares in Yellow Cake were up 3.98% at 561.5p.
Reporting by Josh White for Sharecast.com.
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