The company’s estimated net asset value rang in at 211p per share, a significant premium on the current share price of 187p.
Total assets amounted to US$245.3mln, comprising largely of 9.62mln pounds of physical uranium (U3O8) valued at a spot price of US$25.00 per pound.
"Uranium spot market volumes recovered to near 2018 levels in the last quarter, despite the continued uncertainty as to the findings and recommendations of the US Nuclear Fuels Working Group, though volumes were down over the year,” said Andre Liebenberg, chief executive of Yellow Cake.
“With this uncertainty remaining, the spot price has stayed locked in a narrow range. The long term case for uranium remains sound, in particular as the world increasingly recognises the need for the clean baseload energy nuclear provides. We expect demand to rise as the new nuclear fleet currently under construction comes on stream over the next two years and we see a sustainable return to buying from the major utilities.”
Because the shares are trading at a discount to NAV, the company has begun a share buyback programme.