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(Sharecast News) - Yellow Cake reported a strong uplift in the value of its uranium holdings in the second quarter on Wednesday, driven by a sharp rise in the uranium spot price, which climbed 21.8% over the period.
The AIM-traded company's estimated net asset value per share rose 14.3% to 5.77 as at 30 June, up from 5.05 at the end of March.
Its physical uranium holdings increased in value from $1.4bn to $1.7bn during the quarter, reflecting the spot price gain from $64.45 per pound to $78.50 per pound.
As of 29 July, following a slight retreat in prices to $70.85 per pound, the company's estimated net asset value stood at 5.35 per share, or $1.55bn.
All of Yellow Cake's triuranium octoxide holdings are stored at facilities operated by Cameco in Canada and Orano in France.
"The UK government's approval of Sizewell C is a pivotal moment for the nuclear renaissance, underscoring the growing acceptance of nuclear power as a cornerstone for achieving net zero ambitions worldwide," said CEO Andre Liebenberg.
"This milestone amplifies the already robust demand for uranium, driven by new reactor projects and the energy demands of AI and hyperscale data centres."
Liebenberg added that while demand was accelerating, global uranium production remained constrained at around 157 million pounds annually, compared with demand exceeding 180 million pounds.
"We believe that with growing reliance on nuclear to meet climate goals and provide energy security, this supply-demand imbalance is set to intensify and exert strong upward pressure on the uranium price in the medium to long term."
The spot uranium market saw increased volatility during the quarter, including a 10% price spike in mid-June following capital-raising activity by the Sprott Physical Uranium Trust.
Geopolitical uncertainty, including new US tariffs, contributed to market tension, while term market activity remained subdued as utilities continued to monitor policy developments and long-term procurement opportunities.
At 1434 BST, shares in Yellow Cake were up 0.09% at 499.03p.
Reporting by Josh White for Sharecast.com.