29th Oct 2019 12:35
(Alliance News) - Yellow Cake PLC said Tuesday it remains positive about the medium and long term outlook for uranium, as it reported an increase in physical uranium value of the company.
The uranium investor said its estimated net asset value for the quarter ended September 30 was GBP2.32 per share, totaling USD252.2 million.
Physical value of U3U8, held by the company, increased by 18% over the three months to USD246.7 million from USD237.5 million, relative to the aggregate acquisition cost of USD208.5 million.
The company said the Section 232 investigation into uranium imports into the US was concluded during the quarter, with a decision by the US President not to implement new trade restrictions on imports. As part of the investigation, a Nuclear Fuels Group was create, with their recommendations expected in mid-November.
Andre Liebenberg, chief executive officer, said:"Trading activity in the uranium market remains subdued as we await the findings of the US Nuclear Fuels Working Group. Though this uncertainty continues to weigh on the uranium price in the near term, we are positive about the medium and long term outlook for uranium."
"We expect activity to increase in due course as buyers re-enter the market and we see a return to more normal levels of term contracting, in particular from US utilities who have been holding off making purchase decisions," Liebenberg said.
Yellow Cake shares were up 0.5% in London at 190.00 pence each on Tuesday afternoon.
By Loreta Juodagalvyte; [email protected]
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