Yellow Cake reports increase in uranium holding value

(Sharecast News) - Yellow Cake said on Monday that the value of its uranium holdings increased 1.5% during the quarter ended 30 June to $1.97bn, as its inventory rose to 23.21m pounds of uranium oxide and the spot price increased to $84.85 per pound from $83.95. Estimated net asset value per share edged up to £6.34 from £6.33, while longer-term uranium prices strengthened despite limited utility contracting.

The AIM-traded company has agreed to buy a further 1.16m pounds of uranium from Kazatomprom for $100m, taking its holdings to 24.37m pounds following delivery in the second half.

It also completed a $10m share buyback after the period ended, purchasing 1.36m shares, and said its pro forma net asset value stood at £6.42 per share on 24 July.

At 1157 BST, shares in Yellow Cake were up 1.58% at 545p.

Reporting by Josh White for Sharecast.com.

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