Yellow Cake (LSE:YCA) said the value of its uranium portfolio slipped slightly by 0.5% to US$1.77bn over the three months to 31 December 2025, with net asset value per share easing to £6.03, tracking a modest dip in spot uranium prices despite broadly constructive market conditions. During the period, the company bolstered its balance sheet through an oversubscribed £129.6m equity placing and confirmed plans to exercise its 2025 option with Kazatomprom to acquire 1.33 million pounds of U3O8 at US$75.08 per pound. Once completed, the purchase is expected to take total uranium holdings to around 23 million pounds, providing scope for additional opportunistic buying. Management noted that the shares have recently traded above NAV, highlighting sustained investor demand for uranium exposure as nuclear power investment accelerates globally, fuelled by data centre and AI-driven electricity needs alongside new long-term nuclear programmes in markets including the US and South Africa.
Operationally, the investment case continues to be weighed down by uneven financial metrics, notably ongoing negative cash generation and fluctuating earnings, even as the company maintains a zero-debt, low-risk balance sheet. From a market perspective, the share price remains in a strong upward trend, though near-overbought indicators and a negative price-to-earnings profile temper the overall assessment.
More about Yellow Cake plc
Yellow Cake plc is a dedicated uranium investment company that provides investors with direct exposure to physical uranium oxide (U3O8), which it holds on a long-term basis while also engaging in uranium-related commercial activities. Its fully paid uranium inventory is stored at facilities operated by Cameco in Canada and Orano in France. The group’s strategy is centred on benefiting from tightening supply-demand dynamics as nuclear energy plays a growing role in the global power mix.
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