The value of Yellow Cake shares was underscored by its latest quarterly update, which shows shares are trading at a discount to the underlying value of its assets.
Yellow Cake, which holds physical uranium to capture price appreciation, bolstered its physical uranium position in the first quarter, adding more than 1.4 million pounds and ending March with 23.1 million pounds of U3O8, up from 21.7 million pounds at the start of the year.
The increase came primarily from the delivery of 1.33 million pounds from Kazatomprom at $75.08/lb, the exercise of Yellow Cake’s 2025 purchase option, and a 100,000-lb spot market purchase delivered to Orano’s facility in France.
The value of those holdings rose 9.7% over the quarter to $1.94bn, driven by the expanded stockpile and a modest increase in the spot price from $81.55/lb to $83.95/lb.
The estimated net asset value per share climbed 5.0% to £6.33, helped further by sterling’s depreciation against the dollar. The pro forma NAV as of 24 April stood at £6.34 per share. This compares to a share price of 594p on Monday.
Providing commentary on the market backdrop, Andre Liebenberg, CEO of Yellow Cake, said: “The first quarter of 2026 marked a transition from policy ambition to large-scale implementation, accentuated by the conflict in the Middle East once again highlighting the importance of energy security.”
“With 39 nations now committed to tripling nuclear capacity, the World Nuclear Association projects global capacity could reach 1,446 GWe by 2050, surpassing the targets launched at COP28 in 2023. This momentum is evidenced by China elevating its 2030 target to 110 GWe, near double its current capacity, and the U.S. ‘UPRISE’ initiative, which fast-tracks reactor uprates to power the AI and data centre revolution.
“While we welcome the progress of long-dated supply projects like NexGen Energy’s Rook I and Denison’s Phoenix, the market remains structurally tight today. We see utilities increasingly prioritising security of supply, driving term prices higher as they compete for limited available material.
“Against this backdrop, Yellow Cake continues to deliver tangible value for shareholders. Our oversubscribed US$110 millionplacing and the exercise of our Kazatomprom option have grown our holdings to 23.1 million pounds, with committed purchases expected to increase holdings to approximately 24.4 million pounds.”