Yellow Cake, a uranium-focused company, reported a significant rise in its full-year financial performance driven by a substantial increase in uranium prices. The company’s spot price of triuranium octoxide peaked at a 16-year high of $107 per pound in February 2024 and closed the financial year at $87 per pound, marking a 72% rise from the previous year.
During the 12 months ended 31 March, Yellow Cake’s triuranium octoxide holdings surged 84%, reaching $1.75 billion. This increase was attributed to a rise in uranium volume and the price appreciation of uranium. The company acquired an additional 1.53 million pounds of triuranium octoxide, bringing its total holdings to 21.68 million pounds.
Yellow Cake’s net asset value rose to $1.88 billion, or 688p per share, compared to $1.04 billion in the prior year. The company reported a profit after tax of $727 million for the year, a significant turnaround from a loss in the previous period.
Chief Executive Officer Andre Liebenberg expressed confidence in the company’s strategy, citing the strong uranium market fundamentals that continue to drive the price higher. Liebenberg highlighted the underinvestment in uranium supply and the rapid expansion of the global nuclear reactor fleet as factors supporting the bullish outlook for uranium prices.
Shares in Yellow Cake were up 1.4% following the announcement of the company’s impressive financial performance. Investors are optimistic about the company’s future prospects as it continues to benefit from the rising uranium prices and its strategic focus on the physical commodity.
