Yellow Cake Annual Net Asset Value Rises On Increased Uranium Price

(Alliance News) - Yellow Cake PLC on Tuesday released its first annual results since listing on ...

Alliance News 18 June, 2019 | 11:13AM
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(Alliance News) - Yellow Cake PLC on Tuesday released its first annual results since listing on London's AIM market last July.

The uranium investor posted a pretax profit attributable to the equity owners of the company of USD29.7 million for the period January 18, 2018 to March 31, 2019.

At March 31, the company's net asset value per share stood at 225.0 pence, a 13% increase from its IPO price of 200.0p.

Yellow Cake also said its NAV has decreased since the end of March to 214p per share at May 31.

Shares in Yellow Cake were 0.4% higher Tuesday in London at 207.73 pence each.

"I am pleased to present our maiden set of full-year numbers. We have been active in the market, acquiring additional uranium on three separate occasions following our admission to the AIM market, taking our total uranium holdings to nearly 10 million pounds, in line with the strategy we set out at the time of our IPO," said Chief Executive Andre Liebenberg.

Yellow Cake said the value of its underlying uranium has increased by 22% to USD217.4 million, compared to the acquisition cost of USD178.2 million. Yellow Cake's market capitalisation is GBP183.5 million.

During the period the company bought 8.4 million pounds of uranium from National Atomic Co Kazatomprom JSC at an average cost of USD21.10 per pound against a spot price of USD25.75 per pound.

At March 31, Yellow Cake's total holding of uranium was 8.4 million pounds. Since the end of March, Yellow Cake has acquired a further 1.2 million pounds of uranium.

Yellow Cake said the uranium market has seen a "steady improvement", with the spot price rising 13% to USD25.75 per pound at the end of March from USD22.85 per pound at the time of the company's IPO.

Liebenberg added: "We continue to believe that the uranium market is structurally mis-priced and that prices will continue to rise in the long-term. Despite some continued volatility, market activity has justified our investment proposition, with the spot price increasing by 13%. We continue to offer investors exposure to the uranium spot price without the operating risks associated with exploration, development and mining, and the market dynamics underpinning our thesis remain robust."

At March 31, Yellow Cake had USD8.8 million in cash.

The company did not propose a dividend in the period.

By Paul McGowan;

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Yellow Cake PLC Ordinary Shares 220.00 GBX 0.92 -

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