Yellow Cake plc (LSE:YCA) reported a 10.8% increase in the value of its physical uranium holdings to US$2.18 billion during the third quarter of 2026, reflecting higher uranium prices and the delivery of additional material purchased from Kazatomprom.
The uranium investment company held 24.37 million pounds of uranium oxide (U₃O₈) at 30 September 2026, compared with 23.21 million pounds at the end of June.
The increase followed the delivery of approximately 1.16 million pounds of uranium under the company’s existing purchase agreement with Kazakhstan’s state-owned uranium producer.
Yellow Cake’s estimated net asset value per share increased 5% to £6.66 from £6.34 during the quarter, while the uranium spot price rose 5.5% to US$89.50 per pound.
The company also completed a US$10 million share buyback programme in July and said it continues to evaluate capital allocation options in response to the difference between its share price and underlying net asset value.
Uranium Holdings Increase to 24.37 Million Pounds
Yellow Cake held 24,374,996 pounds of U₃O₈ at the end of September 2026, compared with 23,214,230 pounds three months earlier.
The increase resulted from the delivery of 1,160,766 pounds of uranium from JSC National Atomic Company Kazatomprom on 11 August 2026.
The material was delivered to the Orano storage facility in France under Yellow Cake’s previously exercised 2026 purchase option.
The company acquired the uranium at US$86.15 per pound for total consideration of US$100 million.
The purchase was made under its existing framework agreement with Kazatomprom.
All uranium owned and paid for by Yellow Cake is held at designated storage facilities operated by Cameco in Canada and Orano in France.
The company’s investment model involves holding physical uranium over the long term alongside participation in uranium-related commercial activities.
Uranium Inventory Value Rises to $2.18 Billion
The market value of Yellow Cake’s uranium holdings increased to US$2.18 billion at 30 September 2026, compared with US$1.97 billion at the end of June.
The increase of approximately US$211.9 million represented quarterly growth of 10.8%.
The change reflected both the additional uranium acquired during the period and the increase in the market price of U₃O₈.
The uranium spot price rose from US$84.85 per pound at the end of June to US$89.50 per pound at the end of September.
The company values its physical uranium inventory using prevailing market prices.
As a result, changes in uranium prices directly affect the reported market value of its holdings and estimated net asset value.
Estimated Net Asset Value Per Share Increases 5%
Yellow Cake reported estimated net asset value of £6.66 per share at 30 September 2026, compared with £6.34 per share at 30 June.
The 5% increase primarily reflected higher uranium prices.
The company also identified a modest positive contribution from its share buyback programme, partly offset by foreign exchange movements.
Yellow Cake subsequently estimated its net asset value at £6.65 per share as of 26 October 2026.
The updated valuation represented total estimated net assets of approximately US$2.23 billion.
It was based on the company’s 24.37 million pounds of uranium holdings valued at a spot price of US$89.85 per pound, together with cash and other net current assets of US$41.7 million as reported at 30 September.
The figures represent estimated asset values rather than realised proceeds from uranium sales.
$10 Million Share Buyback Completed in July
Yellow Cake completed its US$10 million share repurchase programme on 10 July 2026.
The programme commenced on 15 June and involved the purchase of 1,363,976 ordinary shares.
Shares were acquired at a volume-weighted average price of 544.41 pence per share.
During the third quarter, the company purchased a further 467,976 shares before completing the programme.
The aggregate consideration was approximately US$10 million, excluding fees and taxes.
Following completion, Yellow Cake had 257,243,467 ordinary shares in issue, including 5,948,259 shares held in treasury.
The number of shares carrying voting rights stood at 251,295,208.
The company said the buyback made a modest positive contribution to estimated net asset value per share.
Board Continues to Review Capital Allocation
Yellow Cake said its board continues to monitor the difference between the company’s market share price and its estimated net asset value.
Management indicated that further capital allocation measures, including potential share repurchases, remain under consideration.
The company said any such measures would be assessed against their potential impact on the underlying uranium market.
Yellow Cake has not announced a new share buyback programme following completion of the US$10 million programme in July.
The board’s review is focused on the relationship between the company’s equity market valuation and the market value of its uranium holdings.
Uranium Spot Price Increases 5.5% During Q3
The uranium spot price increased by 5.5% during the quarter, ending September at US$89.50 per pound.
Prices rose from US$84.85 per pound at the end of June to US$86.45 at the end of July.
The market advanced further in August, reaching US$89.60 per pound at month-end.
Prices then declined slightly to US$89.50 per pound at the end of September.
Despite the increase in prices, spot market trading volumes were lower than in the comparable period of 2025.
Approximately 39.5 million pounds of uranium were traded in the spot market during the first nine months of 2026, compared with 41.7 million pounds a year earlier.
The reduction represented a decline of approximately 5%.
Yellow Cake noted that uranium market participants remain focused on longer-term supply arrangements, with utility contracting activity below annual replacement levels.
Longer-Term Uranium Prices Also Increase
Uranium forward and long-term price indicators increased during the third quarter.
The UxC three-year forward price reached US$104 per pound at the end of September, representing a quarterly increase of 3%.
The five-year forward price increased 2.8% to US$111 per pound.
The long-term uranium price rose 2.1% to US$96 per pound.
These indicators remained unchanged during July before increasing in August and stabilising through September.
The company said concerns about the security of future uranium supply continue to influence contracting decisions by nuclear power utilities.
Yellow Cake expects additional long-term contracting activity as utilities seek to address future fuel requirements.
US Uranium Purchases Decline in 2025
Yellow Cake’s market review included figures from the latest US Energy Information Administration uranium marketing report.
According to the data, uranium purchases by US nuclear utilities declined to 46.9 million pounds in 2025, compared with 55.9 million pounds in 2024.
The weighted-average purchase price increased to US$58.46 per pound from US$52.71 per pound.
Canada remained the largest source of uranium supplied to US utilities, accounting for 15.2 million pounds.
Kazakhstan supplied 13.3 million pounds, followed by Australia with 7.1 million pounds and Uzbekistan with 3.3 million pounds.
Commercial uranium inventories held by US utilities increased to 118.3 million pounds, up 3.1 million pounds from the previous year.
Supplier inventories reached 51.7 million pounds, representing an increase of 10.9 million pounds.
The figures provide additional context for uranium procurement and inventory trends in the US nuclear fuel market.
Nuclear Energy Development Continues Across Major Markets
Yellow Cake identified developments in nuclear electricity generation as relevant to the longer-term outlook for uranium demand.
China approved eight additional nuclear reactors during July 2026, including Hualong One and Guohe One reactor designs.
South Korea is assessing additional electricity generation requirements associated with data centres and semiconductor manufacturing.
The country’s energy research authorities have recommended extending the operating lives of several existing reactors and constructing additional nuclear capacity.
In the United States, the Nuclear Regulatory Commission issued a construction permit in September for the Tennessee Valley Authority’s planned BWRX-300 small modular reactor at Clinch River.
The permit authorises construction, although a separate operating licence will be required before fuel loading and operation.
The US Army also announced the selection of five microreactor developers for projects at military installations under its Janus programme.
Other countries, including Japan, India, Thailand and Türkiye, are evaluating additional nuclear generation capacity or small modular reactor technologies.
These developments form part of the company’s assessment of potential future uranium demand.
Nuclear Capacity Forecasts Indicate Long-Term Expansion
Yellow Cake referred to updated projections from the International Atomic Energy Agency concerning global nuclear power capacity.
The agency’s high-case forecast projects worldwide nuclear capacity increasing from 377.1 gigawatts of electrical capacity at the end of 2025 to 1,045 gigawatts by 2050.
Under the same scenario, capacity could reach 1,284 gigawatts by 2060.
The IAEA’s low-case forecast projects global nuclear capacity of 696 gigawatts by 2060.
Small modular reactors are expected to account for between 23% and 28% of new nuclear capacity added by 2060, depending on the scenario.
Yellow Cake also highlighted the World Nuclear Association’s assessment that annual investment across the nuclear sector would need to increase to approximately US$250 billion to support longer-term capacity expansion.
These projections are scenario-based estimates rather than confirmed construction commitments.
New Uranium Mine Developments Expected to Add Supply
Yellow Cake’s market review also addressed developments in uranium mining and production.
Cameco reported Canadian uranium production of 6.2 million pounds during the second quarter of 2026 on a 100% ownership basis, compared with 7.7 million pounds in the corresponding period of 2025.
Production was affected by operational disruption at McArthur River/Key Lake and planned maintenance at Cigar Lake.
Kazatomprom reported second-quarter uranium production of 18.6 million pounds, an increase of 8% from a year earlier.
The producer maintained its 2026 production guidance of 71.5 million to 75.4 million pounds.
In Canada, Denison Mines commenced full-scale construction of its Phoenix uranium project in Saskatchewan, with first production targeted for 2028.
NexGen Energy also advanced construction of its Rook I uranium project in the Athabasca Basin.
Yellow Cake noted that these developments are expected to contribute additional uranium supply later in the decade.
The company also referenced an international assessment indicating that production from existing and committed mines could meet lower-demand scenarios through 2032, but would be insufficient under higher-demand assumptions.
Chief Executive Comments on Uranium Market and Asset Valuation
Andre Liebenberg, chief executive officer of Yellow Cake, commented on the company’s quarterly performance and uranium market developments:
“The third quarter of 2026 highlighted the continued strength of the uranium market and Yellow Cake’s market position, with spot prices rising 5.5% to US$89.50/lb and longer-term price indicators advancing across the board. While utilities remain focused on security of supply, long-term contracting continues to lag below annual replacement levels, providing strong underlying support for future pricing as utilities return to address uncovered requirements. Long-term fundamentals continue to build momentum, particularly with accelerating progress in SMRs and ‘micro-reactors’, highlighted by the US NRC construction permit for TVA’s Clinch River project and US military deployment plans. New mine developments in Saskatchewan are expected to add supply later this decade, but further investment in production will be needed to meet projected demand growth.
“Against this backdrop, Yellow Cake has shown another period of strategic progress. Following the delivery of 1.16 million pounds of uranium from Kazatomprom in August under our 2026 purchase option, our total physical holdings increased to 24.37 million pounds. The value of our uranium inventory rose 10.8% to US$2.2 billion, while our estimated NAV per share increased by 5%, primarily reflecting higher uranium prices, with a modest contribution from the accretive share buyback programme completed in July.
“The Board continues to closely monitor the disparity between our share price and Net Asset Value. While broader equity market dynamics have influenced our trading valuation, the Board is actively evaluating capital allocation options, including share buybacks, to address this disparity and unlock value, provided such measures do not negatively impact the underlying uranium spot market. We remain committed to taking appropriate steps to restore alignment between our market capitalisation and underlying NAV.
“The long-term fundamentals of the nuclear fuel cycle have never been more compelling. As global energy demand accelerates, spurred by data centre expansions, AI infrastructure and decarbonisation, secure physical uranium supply is increasingly strategic. Yellow Cake remains well-positioned to offer shareholders direct, liquid exposure to an intensifying uranium growth cycle.”
Uranium Market Outlook
Yellow Cake expects security-of-supply considerations and future contracting requirements to remain relevant factors in the uranium market.
The company noted that reported long-term uranium contracting activity remains below replacement levels, while nuclear power development plans continue across several countries.
Additional uranium production capacity is expected to become available later in the decade as new mining projects advance.
Yellow Cake’s asset valuation will continue to reflect changes in uranium prices, foreign exchange rates and the volume of physical uranium held.
The board also intends to continue reviewing capital allocation options, including the potential for further share buybacks.
More About Yellow Cake
Yellow Cake plc (LSE:YCA) is a uranium-focused investment company that holds physical uranium oxide for the long term and participates in uranium-related commercial activities.
The company’s uranium holdings are stored at facilities operated by Cameco in Canada and Orano in France.
At 30 September 2026, Yellow Cake held approximately 24.37 million pounds of U₃O₈ with a market value of US$2.18 billion.
Its estimated net asset value stood at £6.66 per share at the quarter-end.
Yellow Cake completed a US$10 million share repurchase programme in July 2026 and continues to assess capital allocation options.
The company’s financial position and asset valuation are influenced primarily by uranium market prices, currency movements and its physical uranium inventory.
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