Yellow Cake PLC on Monday said that the uranium market presents continued opportunities despite a fall in net asset value due to a recent decline in the price of the silvery metal.

Yellow Cake, a Jersey-based uranium investor, was founded by Bacchus Capital Advisers in 2018.

The company said NAV per share fell 3.2% to £6.88 as at March 31 from £7.11 at December 31, citing a decline in the uranium price, albeit mildly offset by the depreciation of sterling over the quarter.

Yellow Cake said the spot price for uranium fell 4.4% to $87 a pound at the end of March, from $91.00 at December 31. It is currently trading at $87, Yellow Cake added, having been trapped in a narrow range of $86.50-$90 so far this month.

Despite this, Chief Executive Officer Andre Liebenberg remained optimistic: ‘The uranium market is increasingly fast moving, presenting continued opportunities for Yellow Cake. This is highlighted by the inaugural Nuclear Energy Summit in March this year attended by 32 nations to discuss, for the first time, the role of nuclear energy in addressing climate change. We have seen very positive regulatory developments across the world, which point to the importance of nuclear in the future energy mix.’

He added that the company expects uranium demand to speed up as net zero carbon programmes are implemented alongside a focus on diversifying energy sources.

Yellow Cake shares rose 6.6% to 667.02 pence each on late Monday morning in London.

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