Yellow Cake (YCA) Q1 2025 TU earnings summary

Executive summary

• Uranium holdings increased from 20.16 million lb to 21.68 million lb during the quarter, following delivery of 1.53 million lb from Kazatomprom at $65.50/lb, funded by an oversubscribed share placing in October 2023.

• Net asset value (NAV) rose 5.7% to $1,853.8 million as of 30 June 2024, but estimated NAV per share decreased 0.3% to £6.86 due to a 1.8% drop in uranium spot price.

• Estimated NAV as of 29 July 2024 was $1,804.8 million (£6.47/share), reflecting a further spot price decline to $82.00/lb.

• All uranium is stored at Cameco (Canada) and Orano (France) facilities.

Financial highlights

• Value of uranium holdings increased by $100.3 million over the quarter, offset by spot price decline.

• Cash and other current assets/liabilities stood at $26.9 million as of 30 June 2024.

• Share placing in October 2023 raised approximately £103 million ($125 million) to fund uranium purchase.

Outlook and guidance

• Management remains confident in uranium's long-term fundamentals, citing global nuclear demand and constrained supply.

• US ban on Russian uranium imports from August 2024 expected to increase demand for non-Russian nuclear fuel and support prices.

• Market consolidation seen as an opportunity for investors; further upward pricing pressure anticipated.