Yellow Cake (YCA) H1 2025 earnings summary

Executive summary

• Uranium holdings increased from 20.16 million lb to 21.68 million lb during the half-year ended 30 September 2024, with a 1.1% rise in the value of holdings to USD1,772.5 million despite a 6% drop in spot price to USD81.75/lb.

• Net asset value declined from USD1,883.6 million to USD1,796.0 million, and net asset value per share fell from GBP6.88 to GBP6.17.

• Loss after tax was USD87.6 million, compared to a profit of USD458.8 million in the same period last year.

• 1.53 million lb of U3O8 was acquired from Kazatomprom at USD65.50/lb, funded by an oversubscribed share placing raising GBP103 million.

Financial highlights

• Uranium loss for the half-year was USD81.0 million, compared to a gain of USD462.9 million in the prior year.

• Operating expenses rose to USD8.3 million (from USD5.8 million), with procurement and storage fees increasing due to higher uranium values.

• Cash and cash equivalents decreased to USD26.5 million from USD133.6 million at the prior year-end.

• No dividend is proposed for the period.

Outlook and guidance

• Management expects near-term uranium price volatility but anticipates supply-side constraints will drive a price correction.

• Global sentiment toward nuclear energy is improving, with significant new reactor approvals and plans to triple nuclear capacity by 2050.

• Supply challenges, including Kazatomprom's reduced 2025 production guidance and geopolitical tensions, are expected to impact market dynamics.