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Yellow Cake PLC on Wednesday reported a swing to a half-year loss as it noted constrains due to supply issues and cost inflation.
The Jersey-based investor in uranium reported a pretax loss of $145.5 million for the six months that ended September 30, swung from a profit of $169.1 million a year prior. The investor makes no revenue.
Fair value movement of investment in uranium turned to a loss of $142.0 million from a gain of $175.9 million. Uranium holding fees and storage incentive fees more than doubled to $1.6 million from $777,000.
‘We continue to deliver on our stated strategy. During the period we took delivery of a further three million pounds of uranium, bringing our total holdings to 18.8 million pounds. The case for buying and holding uranium, despite a much weaker economic outlook, is compelling. The underlying fundamentals for nuclear energy, particularly with recent events highlighting the need for greater energy security, continue to strengthen,’ Chief Executive Officer Andre Liebenberg said, referring to Russia’s invasion of Ukraine and subsequent reduction in supply of Russian gas to EU nations.
‘We are seeing an acceleration of new nuclear build intentions, particularly from China and a broader based appreciation of the value of the existing nuclear fleet infrastructure, with life extensions in the US and Europe and further restarts in Japan. Meanwhile, supply is still heavily constrained driven by supply side pressures and cost inflation and will not keep up with rising demand. We remain very excited about the outlook for uranium and confident in our strategy and investment case.’
Yellow Cake shares fell 2.8% to 371.60 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News reporter
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