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Yellow Cake books profit of nearly US$30mln in maiden full year financials following IPO

Yellow Cake continues to believe that the uranium market is structurally mis-priced

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The company's uranium holdings rose during the period

Yellow Cake PLC (LON:YCA) increased the value of the uranium it holds for investment by 22% during the 15 month period from January 2018 to March 2019.

As at the end of March the value of the U3O8 held stood at US$217.4mln, as against the acquisition cost of US$178.2mln.

 

During the period Yellow Cake bought just over 8.4mln pounds of U3O8 from Kazakh uranium giant Kazatomprom.

The company sees a steady improvement in the market for U3O8, with the spot price increasing from US$22.85 at the time of the IPO in July 2018 to US$25.75 at the end of March 2019.

During the period Yellow Cake booked a profit of US$29.7mln.

Net assets rang in at US$2.93 per share.

Post-period, as at 31 May, the net asset value was slightly lower, at US$2.70 per share.

“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 Andre Liebenberg, chief exeutive of Yellow Cake.

“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% from USD22.85/lb at our IPO to USD25.75/lb at the end of March 2019. 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.”
 

 

Quick facts: Yellow Cake PLC

Price: 186.6 GBX

AIM:YCA
Market: AIM
Market Cap: £164.03 m
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