REG - Yellow Cake PLC - Annual Results for the year ended 31 March 2025
24/07/2025 11:15
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RNS Number : 4384S Yellow Cake PLC 24 July 2025
24 July 2025
Yellow Cake plc ("Yellow Cake" or the "Company")
Annual Results for the year ended 31 March 2025
Highlights
- Holdings of 21.68 million lb of U(3)O(8) as at 31 March 2025 acquired at an
average cost of USD34.64/lb 1 , representing approximately 14% of 2024 global
annual uranium production 2 .
- Received 1.53 million lb of U(3)O(8) in June 2024 following the exercise of
the Kazatomprom option in the prior year.
- Loss after tax of USD469.2 million for the year ended 31 March 2025 (2024:
profit after tax of USD727.0 million) primarily due to a 26% decrease in the
spot price leading to a USD456.1 million decrease in the fair value of the
Group's uranium holdings (2024: USD735.0 million increase).
- Net asset value of USD1,414.4 million (GBP5.05 per share) 3 as at 31 March
2025 (2024: USD1,883.6 million (GBP6.88 per share)).
- Value of the Group's holdings of U(3)O(8): USD1,397.4 million as at 31 March
2025, a decrease of 20% on 31 March 2024 as a result of the depreciation in
the uranium price, partly offset by a net increase in the volume of uranium
held from 20.16 million lb of U(3)O(8) to 21.68 million lb of U(3)O(8).
Andre Liebenberg, CEO of Yellow Cake, said;
"Geopolitical uncertainties have resulted in a softer uranium price over the
past 12 months. However, recent shifts in key factors impacting the uranium
price give us considerable optimism.
Our view is that current uranium prices do not reflect the underlying supply
and demand dynamics.
Yellow Cake is strategically poised to deliver long-term value as the uranium
market tightens, with global nuclear demand soaring, projected to reach a
record high in 2025. This is by fuelled by policy shifts, leading to restarts
in Japan, and new builds in China, India, and Europe. We have also seen
executive orders in the US to increase installed nuclear capacity by 300 GW
(from 100 GW) and the target of 10 new reactors under construction in US by
2030.
Alongside an acceleration in the development of global hyperscale data centres
and the significant potential market penetration of SMR technology, we are
entering, we believe, a new renaissance in nuclear energy.
Meanwhile supply is struggling with production delays from new projects and
restarts, logistical challenges, and geopolitical complexities, including US
restrictions on Russian uranium and reciprocal Russian measures, which serve
to intensify market uncertainty.
We remain very confident in our strategy, and in the opportunity that Yellow
Cake presents investors who want direct exposure to the uranium price."
ENQUIRIES:
Yellow Cake plc
Andre Liebenberg, CEO Carole Whittall, CFO
Tel: +44 (0) 153 488 5200
Nominated Adviser and Joint Broker: Canaccord Genuity Limited
James Asensio Henry Fitzgerald-O'Connor
Chalie Hammond
Tel: +44 (0) 207 523 8000
Joint Broker: Berenberg
Matthew Armitt Jennifer Lee
Detlir Elezi
Tel: +44 (0) 203 207 7800
Financial Adviser: Bacchus Capital Advisers
Peter Bacchus Richard Allan
Tel: +44 (0) 203 848 1640
Communications Adviser: Sodali & Co
Peter Ogden Jade Sampayo
Tel: +44 (0) 7793 858 211
ABOUT YELLOW CAKE
Yellow Cake is a London-quoted company, headquartered in Jersey, which offers
exposure to the uranium spot price. This is achieved through its strategy of
buying and holding physical triuranium octoxide ("U(3)O(8)"). It may also seek
to add value through other uranium related activities. Yellow Cake and its
wholly owned subsidiary (the "Group") seek to generate returns for
shareholders through the appreciation of the value of its holdings of U(3)O(8)
and its other uranium related activities in a rising uranium price
environment. The business is differentiated from its peers by its ten-year
Framework Agreement for the supply of U(3)O(8) with Kazatomprom, the world's
largest uranium producer. Yellow Cake currently holds 21.68 million pounds of
U(3)O(8), all of which is held in storage in Canada and France.
FORWARD-LOOKING STATEMENTS
Certain statements contained herein are forward looking statements and are
based on current expectations, estimates and projections about the potential
returns of the Company and the industry and markets in which the Company will
operate, the Directors' beliefs and assumptions made by the Directors. Words
such as "expects", "anticipates", "should", "intends", "plans", "believes",
"seeks", "estimates", "projects", "pipeline", "aims", "may", "targets",
"would", "could" and variations of such words and similar expressions are
intended to identify such forward-looking statements and expectations. These
statements are not guarantees of future performance or the ability to identify
and consummate investments and involve certain risks, uncertainties and
assumptions that are difficult to predict, qualify or quantify. Therefore,
actual outcomes and results may differ materially from what is expressed in
such forward-looking statements or expectations. Among the factors that could
cause actual results to differ materially are: uranium price volatility,
difficulty in sourcing opportunities to buy or sell U(3)O(8), foreign exchange
rates, changes in political and economic conditions, competition from other
energy sources, nuclear accidents, loss of key personnel or termination of the
services agreement with 308 Services Limited, changes in the legal or
regulatory environment, insolvency of counterparties to the Company's material
contracts or breach of such material contracts by such counterparties. These
forward-looking statements speak only as at the date of this announcement. The
Company expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statements are
based unless required to do so by applicable law or the AIM Rules.
CHAIRMAN'S STATEMENT
Yellow Cake remains strongly positioned to deliver long-term value as the
widening gap between uranium supply and demand reshapes the market.
Global recognition of nuclear energy as a vital contributor to low-carbon
energy and energy security continues to accelerate. Nuclear generation
capacity rose in 2024, supported by policy shifts in many countries, reactor
restarts in Japan and new build activity across China, India and Europe. The
International Energy Agency ("IEA") projects global nuclear output will reach
a record high in 2025, reflecting this renewed momentum.
However, the uranium supply chain remains under pressure, with producers
reporting delays in developing new resources, logistical constraints and
reduced production guidance.
Structural supply deficits are becoming more pronounced, reinforcing the
strategic importance of secure uranium inventories.
Geopolitical tensions and developments in international trade have added
further complexity to the market, with the US restricting imports of
Russian-enriched uranium and Russia responding with restrictions of its own.
Ongoing uncertainty in the uranium market has resulted in utilities delaying
contracting until the immediate outlook becomes more certain.
Realising long-term value
Yellow Cake provides an opportunity for investors to realise value from
long-term exposure to the uranium spot price and related uranium opportunities
in a low-risk, low-cost and publicly quoted vehicle. Its holdings of
21.68 million lb of U(3)O(8) represent approximately 14% of 2024 global
annual uranium production. The Group's strategy to buy, hold and explore
commercial opportunities to realise value from these holdings has delivered
significant value for shareholders since our listing.
The Board constantly reviews the Group's strategy to grow the business,
improve shareholder value and address any discount to net asset value.
Yellow Cake's Board reserves the right to declare a dividend, as and when
deemed appropriate; however, the Group does not currently expect to declare
dividends on a regular or fixed basis. The Board is not declaring a dividend
for this financial year
Responsible business conduct
The Board is firmly committed to maintaining high standards of corporate
governance, ethics and integrity. We recognise that responsible management of
our environmental, social and governance ("ESG") impacts is essential to
building long-term, sustainable value for all stakeholders.
Yellow Cake has a zero-tolerance approach to bribery, corruption and other
unethical conduct. We maintain robust policies and controls to prevent
bribery, money laundering, modern slavery and improper inducements, and to
ensure full compliance with applicable laws and sanctions regimes. Our
whistleblowing policy allows concerns to be raised in confidence and without
fear of retaliation.
The Code of Conduct reinforces the Group's core values of dignity, diversity,
business integrity and accountability. It applies to all employees, directors,
contractors, business partners and advisers, setting clear expectations for
ethical behaviour, compliance and responsible performance.
Governance in practice
Yellow Cake applies the principles and provisions of the UK Corporate
Governance Code 2018 (the "Code") to the extent appropriate for a business of
its size and complexity. Our streamlined structure and focused business model
support effective oversight, clear accountability and open communication.
Compliance policies are regularly reviewed and updated to ensure alignment
with evolving corporate governance and reporting requirements and guidelines.
The Board remains actively engaged in overseeing the Group's strategy and
operations and met six times during the year ended 31 March 2025. The Audit,
Remuneration and Nomination Committees also met during the period to fulfil
their responsibilities in accordance with their terms of reference. during
the period to fulfil their responsibilities in accordance with their terms
of reference.
Given the nature of our business, Yellow Cake has a minimal direct
environmental and social footprint. However, we conduct appropriate due
diligence on suppliers and commercial partners to ensure they uphold high
standards of responsible conduct. This process is reinforced by an annual,
independent external assessment of our ESG practices and those of our key
suppliers.
Stakeholder engagement
Constructive engagement with our stakeholders is fundamental to Yellow Cake's
long-term success. We maintain open channels of communication with key
stakeholder groups and actively seek feedback to inform our governance and
decision-making processes. Insights from these engagements are regularly
reported to the Board.
The Chairman is available to engage with major shareholders on matters of
governance, strategy and performance. The Executive Directors manage
day-to-day interactions with stakeholders, while the chairs of the Board
Committees engage with shareholders as appropriate on issues within their
respective mandates. Yellow Cake engaged with shareholders following concerns
raised at the AGM regarding the structure of the Group's long-term incentive
programme (the "LTIP").
Appreciation
In closing, I would like to thank my fellow Directors for their commitment and
oversight during the year. I also extend my sincere appreciation to our
shareholders and investors for their continued support and confidence.
Looming supply constraints, accelerating global policy support, growing
recognition of nuclear as critical infrastructure and disconnects between spot
and contract pricing are converging. The structural gap between uranium demand
and supply continues and Yellow Cake remains strongly positioned to deliver
long-term value as these fundamentals feed through into the uranium price.
The Lord St John of Bletso
Chairman
CHIEF EXECUTIVE OFFICER'S REVIEW
Forecasts for uranium supply are falling behind growth in nuclear energy as
demand for clean and secure energy continues to rise. As geopolitical tensions
and supply chain challenges evolve, indications are that current uranium
prices do not reflect the underlying supply/demand dynamics.
The global uranium market is facing a period of notable change, driven by
rising demand for clean energy and a heightened focus on energy security.
While government and private sector support for nuclear technologies grows,
sourcing the required uranium faces considerable challenges. Geopolitical
tensions and trade policy instability have exposed vulnerabilities in the
nuclear fuel supply chain and raised uncertainty in the market.
Rising demand for clean energy
Interest in nuclear energy is at its highest levels in decades 4 , with
nuclear power now widely accepted as a key component of the diversified energy
portfolio required to meet future demand for secure, low-carbon electricity.
Nuclear's low-carbon lifecycle emissions, small operational footprint and
reliable baseload profile make it an excellent complement for renewable energy
sources to support grid stability.
The IEA projects that electricity use will increase 2.5 times by 2050 in a
net-zero scenario, with much of this growth in developing markets. Although
renewable energy shows the biggest increase, nuclear energy is projected to
grow in line with electricity growth to over 1 000 GWe. This would require an
average of 22 GW of new nuclear capacity to be added each year to 2050
compared to the 13 GW brought online in the last two years. Emerging trends
support increased energy demand such as the tech industry's need for
substantial and stable suppliers for energy-intensive data centres, which the
US Department of Energy projects predict will consume 12% of US electricity by
2028. This has seen significant investment by high-tech companies in small
modular reactors ("SMRs") for their energy-intensive operations, adding to the
strong support from government and other investors to bring these and other
advanced nuclear technologies to commercialisation.
Increased support for nuclear
Support for nuclear is expanding in many countries, with restarts of shuttered
facilities being considered and new projects proposed, planned or already
under construction. Existing facilities are being expanded and licence
extensions granted to 60 or 80 years. Electricity from nuclear is already
forecast to hit its highest level ever in 2025 and there are currently 66
reactors under construction worldwide and 85 planned, with 61 of these in
China, Russia and India.
In addition, we are seeing countries that had previously announced plans to
exit nuclear energy are now reviewing those plans. These include Italy,
Belgium, Denmark and Taiwan, which are re-considering nuclear as part of their
future energy mix.
Countries including the US and UK have announced reforms to speed up nuclear
project approvals, especially SMRs, as part of their energy strategies. In
March 2025, a cross-industry group of large energy users signed a pledge,
joining 31 countries and 14 of the world's largest financial institutions that
have pledged to triple nuclear energy capacity by 2050. The endorsement from
the financial sector could lead to increased capital flows into nuclear
projects, further supporting uranium demand.
In May 2025, US President Trump signed four executive orders to speed up
construction of new nuclear power plants in the US, which included a goal to
increase US nuclear generation capacity from the current 100 GW to 400 GW by
2050.
Energy security and market uncertainty
Global energy markets have changed considerably since Russia's invasion of
Ukraine, which prompted a reassessment of energy security and accelerated the
transition away from fossil fuels. These shifts elevated nuclear energy's
profile as a reliable and low-carbon power source, but also exposed
vulnerabilities in the nuclear fuel supply chain, particularly due to
logistical risks and Russia's major role in conversion and enrichment.
In May 2024, the US passed the Prohibiting Russian Uranium Imports Act that
bans imports of Russian nuclear fuel from August 2024 (with limited waivers to
2028). Russia countered in November 2024 by restricting enriched uranium
exports to the US, highlighting escalating supply risks.
The unpredictability of the new US tariff regime introduced further
instability into broader markets, although uranium was less affected than most
other commodities.
In April 2025, President Trump initiated a Section 232 investigation of
critical minerals which could potentially lead to tariffs or domestic purchase
requirements for uranium, adding further uncertainty to future contracting.
Growing disconnect between long-term needs and contracting by utilities
Global uranium consumption exceeded production over many years, with utilities
relying on stockpiles and secondary supplies to fill the gap. These
alternative sources are now largely depleted and the inventory that remains is
now tightly held by utilities, fuel processors and national nuclear
programmes, with China alone holding significant strategic inventory.
US utilities, the world's largest uranium market, have generally secured
supply coverage for the next approximately four years, but uncovered
requirements show a marked increase from 2029. The current concerns around
global trade, geopolitical developments and the Section 232 investigation have
to date made US utilities hesitant to commit to long-term contracts. However,
forecast growth in nuclear energy and unfilled requirements suggest that
future demand is building and contracting can no longer be avoided.
Supply-side constraints continue
Supply-side constraints continue to limit the industry's capacity to scale
production swiftly, with a material supply gap projected by 2030 and beyond.
Major producers curtailed operations and deferred investments in new projects
during the prolonged period of low uranium prices after the Fukushima
accident. This historic underinvestment will take many years to address.
Uranium production remains constrained following recent permanent closure of
several large operations and a coup in Niger in 2023 that removed around 4% of
global production.
While some producers have announced plans to restart idled operations, these
initiatives face hurdles including restart challenges, supply chain issues and
workforce constraints. Several mine restarts that were expected to help fill
the supply gap encountered difficulties in 2024, falling short of production
targets with production costs often running well above initial projections.
In August 2024, Kazatomprom, the world's leading uranium producer, revised its
2025 production forecast downward by approximately 17%, citing delays in
project development and shortages of critical inputs like sulphuric acid. A
temporary suspension of operations at Kazatomprom's Inkai joint venture in
Kazakhstan in January 2025 due to regulatory documentation delays raised
concerns regarding future output levels.
Sustained higher uranium prices will be required to justify the substantial
capital investments needed to develop new greenfield resources. Given typical
development timelines, these new mines are unlikely to contribute meaningfully
to global supply before the end of the decade.
At the same time, an increasing proportion of uranium from Kazakhstan is being
sold to non-Western customers, with 69% of 2024 sales made to customers
domiciled in China, Russia and Kazakhstan. China has also contracted material
volumes of future production from Kazakhstan through long-term supply
contracts, further decreasing the availability of uranium to Western
countries.
Trends in spot and term markets
Spot market volumes decreased by 17% in the 2024 calendar year to
46.8 million lb (CY2023: 56.3 million lb). Producers were the only group to
increase purchases year-on-year, with decreased activity by utilities and
investment funds.
The uranium spot market price started 2024 at USD91.00/lb and peaked at
USD107.00/lb early in February before trending lower to end the calendar year
20% down at USD73.00/lb. The spot price declined further to USD64.45/lb at 31
March 2025, a 26% decline on the closing price at the end of March 2024.
Despite supply concerns, term uranium volume contracted decreased by 29% to
116.4 million lb (CY2023: 160.8 million lb), still around 50% higher than
the average over the last decade. Buying by US utilities increased by
approximately 50% to cover mid-term requirements and reduce potential risk in
future contracted Russian-sourced deliveries. Three and five-year forward
prices both decreased by 19% over the year to 31 March 2025. Conversion and
enrichment prices hit record levels in 2024 and increased by 40% and 12%
respectively over the year to 31 March 2025 as uncertainty remained high due
to ongoing geopolitical, trade and supply issues. Concerns about the ability
of Western conversion and enrichment capacity to meet forecast demand remain
high. It will take several years for additional conversion and enrichment
capacity to come to market despite higher prices.
Spot and term prices were volatile in the first half of 2025, with uranium
market participants reducing activity due to concerns around the potential
impact of US trade policies. As of 17 July 2025, tariff exemptions remained in
place for natural uranium, conversion services and enrichment services.
Activity in the spot and term markets is likely to recover once more clarity
emerges around the global trade order, potentially presenting a new inflexion
point for the uranium price and an opportunity for investors.
Current prices are misaligned
We are strongly of the view that the uranium price at current levels does not
reflect the supply/demand fundamentals in the market. This is corroborated by
broker consensus forecasts which show upside for uranium from the current spot
price. This implies the unlock of further value in Yellow Cake's strategic
inventory of 22 million lb.
Despite the positive indicators, Yellow Cake traded at a discount to net asset
value for most of the year. We believe this is more linked to the impact of
macroeconomic and geopolitical factors on the risk appetite in the broader
equity market rather than issues specific to the uranium spot market.
We remain very confident in the medium- and long-term case for uranium and we
are well positioned to capitalise on the anticipated rise in uranium prices,
offering investors an opportunity to gain exposure to this tightening market.
Andre Liebenberg
Chief Executive Officer
CHIEF FINANCIAL OFFICER'S REVIEW
Despite a challenging market environment, we remained focused on executing our
strategy, increasing our uranium holdings, and positioning Yellow Cake for the
future.
I am pleased to present the following audited financial statements for the
year to 31 March 2025 and to highlight several key developments over the year.
Financial performance
As at 31 March 2025, Yellow Cake held 21.68 million pounds of U(3)O(8) valued
at USD1,397.4 million, compared to 20.16 million pounds valued at
USD1,753.5 million at 31 March 2024. The Group reported a loss after tax of
USD469.2 million (2024: profit of USD727.0 million), primarily reflecting a
fair value loss of USD456.1 million due to a decrease in the uranium spot
price.
Uranium transactions
Yellow Cake started the financial year with holdings of 20.16 million lb of
U(3)O(8). In June 2024, Yellow Cake took delivery of 1.53 million lb of
U(3)O(8) that it had agreed to purchase in October 2023 as part of the 2023
Kazatomprom uranium purchase option. This was received by the Group at the
Orano storage facility in France in accordance with the agreed delivery
schedule.
As at 31 March 2025, the Group's uranium holdings comprised 21.68 million lb
of U(3)O(8), a net increase of 1.53 million lb of U(3)O(8) during the
financial year.
We continue to pursue value-enhancing commercial opportunities related to our
uranium position. In 2023, we established a new subsidiary to facilitate such
transactions. In the year under review, the Group concluded a location swap
transaction, exchanging 100 000lb of U(3)O(8) located in Canada with a third
party for the same quantity of uranium located in France.
Uranium-related gains and losses
The Group recorded a total uranium-related loss of USD456.1 million in the
year to 31 March 2025 (2024: profit of USD735.0 million), reflecting a
decrease in the fair value of the Group's uranium holdings due to the lower
spot price.
Operating performance
Operating expenses for the year were USD15.2 million (2024:
USD12.3 million). Yellow Cake's Management Expense Ratio for the year (total
operating expenses, excluding commissions and equity offering expenses,
expressed as an annualised percentage of average daily estimated net asset
value during the period) was 0.84% (31 March 2024: 0.74%).
Balance sheet and cash flow
The value of Yellow Cake's uranium holdings decreased by 20% to
USD1,397.4 million at year-end compared to USD1,753.5 million at the end of
the 2024 financial year, due to a decrease in the uranium spot price, partly
offset by a net increase in the volume of uranium held.
As at 31 March 2025, the Group held adequate cash reserves to support
approximately one year of working capital needs. Since the Group's inception
in 2018, we have financed our operations through equity issuances at or above
net asset value. While the Group may choose to realise a small portion of its
uranium inventory to support future working capital needs, we currently carry
no debt or hedging obligations. Looking ahead, the Group retains flexibility
to fund its working capital requirements through either equity or debt
financing.
As at 31 March 2025, Yellow Cake had cash of USD20.0 million (2024:
USD133.2 million).
Net asset value at 31 March 2025 was GBP5.05 per share 5 or USD1,414.4
million, consisting of 21.68 million lb of U(3)O(8) valued at a spot price of
USD64.45/lb, cash and cash equivalents of USD20.0 million and other net
current liabilities of USD3.0 million.
Our estimated net asset value on 17 July 2025 was USD1,578.1 million or
GBP5.43 per share 6 , assuming 21.68 million lb of U(3)O(8) valued at the
daily price of USD72.00 lb published by UxC LLC on 17 July 2025, cash and cash
equivalents of USD20.0 million and net current liabilities of USD3.0 million
as at 31 March 2025.
The Group does not propose to declare a dividend for the year.
Carole Whittall
Chief Financial Officer
FINANCIAL STATEMENTS
Consolidated Statement of Financial Position
Notes As at As at
31 March 2025 31 March 2024
USD '000 USD '000
ASSETS:
Non-current assets
Uranium Holdings 4 1,397,426 1,753,537
Total non-current assets 1,397,426 1,753,537
Current assets
Receivables 5 391 432
Cash and cash equivalents 6 20,009 133,189
Total current assets 20,400 133,621
Total assets 1,417,826 1,887,158
LIABILITIES:
Current liabilities
Trade and other payables 7 (3,400) (3,544)
Total current liabilities (3,400) (3,544)
Total liabilities (3,400) (3,544)
NET ASSETS 1,414,426 1,883,614
Equity
Attributable to the equity owners of the Group
Share capital 8 2,951 2,951
Share premium 8 781,233 781,233
Share-based payment reserve 9 144 107
Treasury shares 10 (14,061) (14,061)
Retained earnings 644,159 1,113,384
TOTAL EQUITY 1,414,426 1,883,614
The consolidated financial statements of Yellow Cake plc and the related notes
were approved by Directors on 24 July 2025 and were signed on its behalf by:
Andre Liebenberg
Chief Executive Officer
Consolidated Statement of Comprehensive Income
Notes 1 April 2024 1 April 2023
to 31 March 2025 to 31 March 2024
USD '000 USD '000
Uranium holding (losses)/gains
Fair value movement of uranium holdings 4 (456,112) 735,018
Total uranium (losses)/gains (456,112) 735,018
Expenses
Equity offering expenses 9 (2) (206)
Share-based payments 8 (37) (25)
Commission on uranium transactions 11 (750) (660)
Procurement and market consultancy fees 11 (4,661) (3,890)
Storage and other operating expenses 12 (9,741) (7,517)
Total expenses (15,191) (12,298)
Bank interest income 2,096 4,785
Loss on foreign exchange (18) (499)
(Loss)/profit before tax attributable to the equity owners of the Group (469,225) 727,006
Tax expense 13 - -
Total comprehensive (loss)/profit for the year after tax attributable to the (469,225) 727,006
equity owners of the Group
Basic (loss)/ earnings per share attributable to the equity owners of the 15 (2.16) 3.51
Group (USD)
Diluted (loss)/earnings per share attributable to the equity owners of the 15 (2.16) 3.50
Group (USD)
Consolidated Statement of Changes in Equity
Attributable to the equity owners of the Company
Share Share Share- based Treasury Retained Total
capital premium payment reserve Shares earnings equity
Notes USD '000 USD '000 USD '000 USD '000 USD '000 USD '000
As at 31 March 2023 2,724 660,203 166 (14,216) 386,449 1,035,326
Total comprehensive profit after tax for the year - - - - 727,006 727,006
Transactions with owners:
Shares issued 8 227 124,448 - - - 124,675
Share issue costs 8 - (3,418) - - - (3,418)
Share-based payments 9 - 25 - - 25
Exercise of incentive options 10 - - (84) 155 (71) -
As at 31 March 2024 2,951 781,233 107 (14,061) 1,113,384 1,883,614
Total comprehensive (loss) after tax for the year - - - - (469,225) (469,225)
Transactions with owners:
Share-based payments 9 - - 37 - - 37
As at 31 March 2025 2,951 781,233 144 (14,061) 644,159 1,414,426
Consolidated Statement of Cash Flows
1 April 2024 1 April 2023
to 31 March 2025 to 31 March 2024
Notes USD '000 USD '000
Cash flows from operating activities
(Loss)/profit before tax (469,225) 727,006
Adjustments for:
Change in fair value of uranium holdings 4 456,112 (735,018)
Share-based payments 9 37 25
Loss on foreign exchange 18 499
Interest income (2,096) (4,785)
Operating cash outflows before changes in working capital (15,154) (12,273)
Changes in working capital:
Decrease/(increase) in receivables 41 (108)
(Decrease)/increase in trade and other payables (150) 1,116
Cash used in operating activities including changes in working capital (15,263) (11,265)
Interest received 2,096 4,785
Cash used in operating activities (13,167) (6,480)
Cash flows from investing activities
Purchase of uranium 4 (100,000) (66,015)
Net cash used in investing activities (100,000) (66,015)
Cash flows from financing activities
Proceeds from issue of shares 8 - 124,674
Issue costs paid 8 - (3,418)
Net cash generated from financing activities - 121,256
Net (decrease)/increase in cash and cash equivalents during the year (113,167) 48,761
Cash and cash equivalents at the beginning of the year 133,189 84,428
Effect of exchange rate changes (13) -
Cash and cash equivalents at the end of the year 20,009 133,189
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2025
1. General information
Yellow Cake plc (the "Company") was incorporated in Jersey, Channel Islands on
18 January 2018. The Company is the holding company of YCA Commercial Ltd
("YCA Commercial") (together the "Group") which was incorporated on 26
September 2023 in Jersey, Channel Islands. The address of the registered
office of the Group is 3rd Floor, Gaspé House, 66-72 Esplanade, St. Helier,
Jersey, JE1 2LH.
The Group operates in the uranium sector and was established to purchase and
hold U(3)O(8) and to add value through other uranium-related activities. The
strategy of the Group is to acquire long‑term holdings of U(3)O(8) and not
to actively speculate with regards to short-term changes in the price of
U(3)O(8). In addition, the Group engages in uranium-related commercial
activities such as location swaps and uranium lending transactions.
The Company was admitted to list on the London Stock Exchange AIM market
("AIM") on 5 July 2018. On 22 June 2022, the Company's shares were admitted
to trading on the OTCQX, the highest tier of the US over-the-counter market.
2. Summary of significant accounting policies
Basis of preparation
The financial information has been prepared in accordance with UK-adopted
international accounting standards ("IFRS") as issued by the International
Accounting Standards Board ("IASB").
In accordance with Section 105 of The Companies (Jersey) Law 1991, the Company
confirms that the financial information for the period ended 31 March 2025 is
derived from the Company's audited financial statements and that these are not
statutory accounts and, as such, do not contain all information required to be
disclosed in the financial statements prepared in accordance with IFRS.
The statutory accounts for the period ended 31 March 2025 have been audited
and approved, but have not yet been filed.
The Company's audited financial statements for the period ended 31 March 2025
received an unqualified audit opinion and the auditor's report contained no
statement under section 113B (3) and (6) of The Companies (Jersey) Law 1991.
The financial information contained within this preliminary statement was
approved and authorised for issue by the Board on 24 July 2025.
The principal accounting policies adopted are set out below.
New and revised standards
At the date of authorisation of these financial statements, there were
standards and amendments which were in issue but not yet effective and which
have not been applied. The principal ones were:
- Amendments to IFRS 9: Financial Instruments (Effective 1 January
2026);
- Amendments to IFRS 7: Financial instruments - Disclosures (Effective
1 January 2026);
- Amendments to IAS 21: Accounting where there is a lack of
exchangeability (effective 1 January 2025); and
- IFRS 18: Presentation and Disclosure in Financial Statements
(effective 1 January 2027 - subject to endorsement by the UKEB).
The Directors have not assessed the impact of IFRS 18. The Directors do not
expect the adoption of the amendments to IFRS 7, IFRS 8 and IAS21 to have a
material impact on the financial statements.
The principal accounting policies adopted are set out below.
Going concern
As at 31 March 2025, the Group held sufficient cash to meet its working
capital requirements for approximately 12 months. Since its inception in 2018,
the Group has consistently funded its operations through equity issuances at
or above net asset value. The Group had no debt or hedging obligations as at
31 March 2025 and will raise additional liquidity either through equity or
debt markets or by monetising a limited portion of its uranium inventory, as
appropriate.
The Board continues to monitor geopolitical developments, including the
ongoing conflict between Ukraine and Russia, as well as the associated
sanctions, including the potential for secondary sanctions. These factors
may affect both the global uranium industry and Yellow Cake's ability to
acquire additional uranium or realise value from its uranium holdings.
Having considered the Group's strategy and available financial resources and
projected income and expenditure for a period of at least 12 months from the
date of approval of the audited consolidated financial statements, the
Directors are confident that the Group has adequate resources to continue in
operational existence for the foreseeable future. On this basis, the Directors
consider the adoption of the going concern basis of accounting to be
appropriate in preparing these audited consolidated financial statements.
Consolidation
The consolidated financial statements are prepared by combining the financial
statements of the Company and its subsidiaries. Subsidiaries are all entities
over which the parent company has control, as defined in IFRS 10 "Consolidated
financial statements". Subsidiaries are fully consolidated from the date on
which control is transferred to the parent company. They are de‑consolidated
from the date that control ceases.
Uranium holdings
Acquisitions of U(3)O(8) are initially recorded at cost including transaction
costs incurred and are recognised in the Group's statement of financial
position on the date the risks and rewards of ownership pass to the Group,
which is the date that the legal title to the uranium passes.
After initial recognition, in U(3)O(8) holdings are measured at fair value
based on the daily spot price for U(3)O(8) published by UxC LLC.
IFRS lacks specific guidance in respect of accounting for holdings in uranium.
As such, the Directors of the Group have considered the requirements of
International Accounting Standard 1 "Presentation of Financial Statements" and
International Accounting Standard 8 "Accounting Policies, Changes in
Accounting Estimates and Errors" to develop and apply an accounting policy.
The Directors of the Group consider that measuring the U(3)O(8) holdings at
fair value provides information that is most relevant to the economic
decision-making of users. This is consistent with International Accounting
Standard 40 "Investment Property", which allows for assets held for long-term
capital appreciation to be presented at fair value.
Foreign currency translation
Functional and presentation currency
The consolidated financial statements are presented in United States Dollars
("USD") which is also the functional currency of the Group.
These consolidated financial statements are presented to the nearest round
thousand, unless otherwise stated.
Foreign currency translation
Transactions denominated in foreign currencies are translated into USD at the
rate of exchange ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the
reporting date are translated into USD at the rate of exchange ruling at the
reporting date. Foreign exchange gains or losses arising on translation are
recognised through profit or loss in the statement of comprehensive income.
Financial instruments
Financial assets and financial liabilities are recognised when the Group
becomes a party to the contractual provisions of the instrument. The Group
shall offset financial assets and financial liabilities if the Group has a
legally enforceable right to set off the recognised amounts and intends to
settle on a net basis.
The carrying amount of the Group's financial assets and financial liabilities
is a reasonable approximation of their fair values due to the short-term
nature of these instruments.
Financial assets
The Group's financial assets comprise receivables. These assets are
non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. They are initially recognised at fair value
and subsequently carried at amortised cost using the effective interest
method, less any provision for impairment.
Cash and cash equivalents comprise cash in hand and short-term deposits in
banks with an original maturity of three months or less.
Financial liabilities
The Group's financial liabilities comprise trade and other payables. They are
initially recognised at fair value and subsequently carried at amortised cost
using the effective interest method.
Share capital
The Group's ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of shares are recognised in share premium
as a deduction from proceeds of the share issue.
Treasury shares
The Group's treasury shares are classified as equity. Treasury shares are
accounted for at cost and shown as a deduction from equity in a separate
reserve. Transfers from treasury shares are recognised at the weighted average
of the cost of acquiring the treasury shares.
Share-based payments
Where the Group issues equity instruments to external parties or employees as
consideration for services received, the statement of comprehensive income is
charged with the fair value of the goods and services received, except where
services are directly attributable to the issue of shares, in which case the
fair value of such amounts is recognised in equity as a deduction from share
premium.
Equity-settled transactions are awards of shares or options over shares that
are provided to employees in exchange for the rendering of services.
Equity-settled transactions are measured at fair value on grant date. Fair
value is independently determined using either a Monte Carlo simulation or a
Black-Scholes option pricing model that takes into account the exercise price,
the term of the option, the impact of dilution, the share price at grant date
and expected price volatility of the underlying share, the expected dividend
yield and the risk-free interest rate for the term of the option, together
with non-vesting conditions that do not determine whether the consolidated
entity receives the services that entitle the employees to receive payment. No
account is taken of any other vesting conditions in determining the fair
value.
The cost of equity-settled transactions is recognised as an expense with a
corresponding increase in equity over the vesting period. The cumulative
charge to profit or loss is calculated based on the grant date fair value of
the award, the best estimate of the number of awards that are likely to vest
and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting
date less amounts already recognised in previous periods.
Market conditions are taken into consideration in determining fair value.
Therefore, any awards subject to market conditions are considered to vest
irrespective of whether that market condition has been met, provided all other
conditions are satisfied.
If equity-settled awards are modified, as a minimum, an expense is recognised
as if the modification has not been made. An additional expense is recognised,
over the remaining vesting period, for any modification that increases the
total fair value of the share-based compensation benefit as at the date of
modification.
If the non-vesting condition is within the control of the Group or employee,
the failure to satisfy the condition is treated as a cancellation. If the
condition is not within the control of the Group or employee and is not
satisfied during the vesting period, any remaining expense for the award is
recognised over the remaining vesting period, unless the award is forfeited.
If an equity-settled award is cancelled, it is treated as if it has vested on
the date of cancellation, and any remaining expense is recognised immediately.
If a new replacement award is substituted for the cancelled award, the
cancelled and new awards are treated as if they were a modification.
Taxation
As the Group is managed and controlled in Jersey, it is liable to be charged
to tax at a rate of 0% under schedule D of the Income Tax (Jersey) Law 1961,
as amended.
Expenses
Expenses are accounted for on an accrual basis.
Segmental reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker is responsible for allocating resources and assessing
performance of the operating segments and has been identified as the Board of
Directors of the Group.
The Group is organised into a single operating segment being the holding of
U(3)O(8) for long-term capital appreciation.
Critical accounting judgements and estimation uncertainty
The preparation of financial statements requires management to make judgments,
estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expenses.
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. Revisions to accounting
estimates are recognised in the year in which the estimate is revised and in
any future years affected.
The resulting accounting estimates will, by definition, seldom equate to the
related actual results.
Judgements
Taxation
The Group receives regular tax advice and opinions from its advisers and
accountants to ensure it is aware of and can seek to mitigate the effects on
its tax position of changes in regulation. While the Group stores its uranium
in storage facilities in Canada and France, the Group does not carry on
business in either of these jurisdictions. The Directors have considered the
tax implications of the Group's operations and based on independent tax
advice, have determined that no tax liability has arisen during the year (year
ended
31 March 2024: USD nil).
Uranium Holdings
As set out under the accounting policy for uranium holdings above, the Group
measures its holdings in U(3)O(8) at fair value.
Kazatomprom Framework Agreement
As set out in note 4, under the terms of the Framework Agreement with
Kazatomprom, the Group has an annual purchase option which entitles it to
contract for up to USD100 million of U(3)O(8) each calendar year at the
U(3)O(8) spot price prevailing at the date that the Group binds itself to make
the purchase. The purchase is accounted for on delivery of the U(3)O(8) at the
storage facility, which may be in a subsequent accounting period. As the
contract does not provide for settlement in cash or with another financial
instrument, the Group has determined that the terms of this arrangement do not
fall within the scope of IFRS 9.
3. Management of financial risks
Financial risk factors
The Group's financial assets and liabilities comprise cash, receivables and
payables that arise directly from its operations. The accounting policies in
note 2 include criteria for the recognition and the basis of measurement
applied for financial assets and liabilities. Note 2 also includes the basis
on which income and expenses arising from financial assets and liabilities are
recognised and measured.
The Group's assets and liabilities have been primarily categorised as assets
and liabilities at amortised cost, with the exception of the uranium holdings
being held at fair value. The carrying amounts of all such instruments are as
stated in their respective notes.
Interest rate risk and sensitivity
Any cash balances are held on variable-rate bank accounts or in money market
funds. Assuming year-end cash balances were held throughout the year under
review, and the interest rate received was 1% higher over the year under
review, profit after tax would have increased by USD200,091 (year ended 31
March 2024: USD1,331,887). Likewise, if the interest rate received was 1%
lower, profit after tax would have decreased by USD200,091 (year ended 31
March 2024: USD1,331,887).
Commodity price risk and sensitivity
The fair value of the uranium holdings may fluctuate because of changes in
market price. If the value of the uranium holdings fell by 5% at the year-end,
the profit after tax would decrease by USD69,871,270 (year ended 31 March
2024: USD87,435,753). Likewise, if the value rose by 5% the profit after tax
would increase by USD69,871,270 (year ended 31 March 2024: USD87,435,753).
Economic risk
Geopolitical events that occurred in Russia-Ukraine during the Group's
financial year have not had a material impact to date on the Group's
operations, nor affected its financial position.
The Group has a ten-year agreement with Kazatomprom, the Kazakh national
atomic company, which provides Yellow Cake with the option to purchase uranium
from Kazatomprom until the end of 2027 (the "Framework Agreement"). While the
Group has in previous years purchased and intends to continue to purchase
U(3)O(8) from Kazatomprom, including under the Framework Agreement, all
U(3)O(8) to which the Group has title and has paid for is held at the Cameco
storage facility in Canada and the Orano storage facility in France.
In October 2023, the Group agreed to purchase 1,526,717 lb of U(3)O(8) under
the Framework Agreement and took delivery at the Orano storage facility in
France on 3 June 2024. Payment was made to Kazatomprom following delivery to
the Group.
Liquidity risk
This is the risk that the Group will encounter in realising assets or
otherwise raising funds to meet financial commitments. Prudent liquidity risk
management involves maintaining sufficient liquidity and short-term investment
securities, being able to raise funds based on suitably adapted lines of
credit and a capacity to unwind market positions.
At year-end, the liquidity of the Group comprised either bank account or bank
deposits, for a total amount of USD20,009,148 (31 March 2024: USD133,188,699).
As at year-end, the Group's cash balances were sufficient to meet
approximately 12 months of working capital requirements. Since its inception
in 2018, the Group has financed its operations through equity issuances
conducted at or above net asset value. While the Group may consider realising
a limited portion of its uranium inventory to generate working capital, it had
no debt or hedging obligations as at 31 March 2025 and retains the ability to
raise additional liquidity through either equity or debt instruments.
The Group's cash and cash equivalents are held with Citibank Europe PLC, which
is rated A+ (2024: A+) according to ratings agency Fitch.
Carrying amount <1 year 1 to 2 years 2 to 10 years
USD '000 USD '000 USD '000 USD '000
As at 31 March 2025
Cash and cash equivalents 20,009 20,009 - -
As at 31 March 2024
Cash and cash equivalents 133,189 133,189 - -
Fair value estimation
Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at
the measurement date, regardless of whether that price is directly observable
or estimated using another valuation technique. In estimating the fair value
of an asset or liability, the Group takes into account the characteristics of
the asset or liability at the measurement date. IFRS 13 requires the Group to
classify fair value measurements using fair value hierarchy that reflects the
significance of the inputs used in making the measurements. The fair value
hierarchy has the following levels:
1 - Quoted prices (unadjusted) in active markets for identical assets or
liabilities (level 1)
2 - Inputs other than quoted prices included within level 1 that are observable
for the asset or liability, either directly (that is, as prices) or indirectly
(that is, derived from prices) (level 2); and
3 - Inputs for the asset or liability that are not based on observable market data
(that is, unobservable inputs) (level 3).
The level to the fair value hierarchy within which the fair value measurement
is categorised in its entirety is determined based on the lowest level input
that is significant of an input is assessed against the fair value measurement
in its entirety. If a fair value measurement uses observable inputs that
require significant adjustment based on unobservable inputs, that measurement
is a level 3 measurement. Assessing the significance of a particular input to
the fair value measurement in its entirety requires judgement, considering
factors specific to the asset or liability. The following table analyses
within the fair value hierarchy the Group's financial assets and liabilities
(by class) measured at fair value.
Level 1 Level 2 Level 3 Total
Assets and liabilities USD '000 USD '000 USD '000 USD '000
As at 31 March 2025
Uranium holdings 1,397,426 - - 1,397,426
As at 31 March 2024
Uranium holdings 1,753,537 - - 1,753,537
4. Uranium holdings
Fair Value
USD '000
As at 31 March 2023 952,504
Acquisition of U(3)O(8) 66,015
Change in fair value 735,018
As at 31 March 2024 1,753,537
Acquisition of U(3)O(8) 100,000
Change in fair value (456,111)
As at 31 March 2025 1,397,426
The value of the Group's U(3)O(8) holdings is based on the daily spot price
for U(3)O(8) of USD64.45/lb as published by UxC LLC on 31 March 2025 (2024:
USD87.00/lb as published by UxC LLC on 31 March 2024).
As at 31 March 2025, the Group:
- has since inception, purchased a total of 24,353,232 lb of U(3)O(8) at an
average cost of USD33.14/lb;
- has since inception, disposed of 2,670,914 lb of U(3)O(8) at an average
selling price of USD40.23/lb that had been acquired at an average price of
USD21.01/lb, assuming a first-in, first-out methodology; and
- held a total of 21,682,318 lb of U(3)O(8) at an average cost of USD34.64/lb
for a net total cash consideration of USD751.1 million, assuming a first-in,
first-out methodology.
Acquisition of uranium
On 3 June 2024, the Group took title to 1,526,717 lb of U(3)O(8), acquired as
part of its 2023 uranium purchase option under its Framework Agreement with
Kazatomprom, at a price of USD65.50/lb for a total consideration of USD100.0
million. Payment occurred following delivery at Orano's storage facility in
France.
Sale of uranium
During the financial year, there were no sales of uranium.
Location swaps
The Group engages in location swap transactions from time to time where this
is commercially advantageous. In November 2024, the Group concluded a location
swap transaction, exchanging 100,000 lb of U(3)O(8) located in Canada with a
third party for the same quantity of uranium located in France.
The following table provides a summary of the Group's U(3)O(8) holdings at 31
March 2025:
Quantity Fair Value
lb USD '000
As at 31 March 2025
Canada 19,755,601 1,273,249
France 1,926,717 124,177
Total 21,682,318 1,397,426
As at 31 March 2024
Canada 19,855,601 1,727,437
France 300,000 26,100
Total 20,155,601 1,753,537
5. Receivables
As at As at
31 March 2025 31 March 2024
USD '000 USD '000
Receivables 391 432
391 432
6. Cash and cash equivalents
Cash and cash equivalents as at 31 March 2025 were held with Citibank Europe
plc in a variable interest account with full access. Balances at the end of
the year were USD 19,790,594 and GBP 169,291, a total of USD 20,009,148
equivalent (31 March 2024: USD133,173,462 and GBP12,062, a total of
USD133,188,698 equivalent).
7. Trade and other payables
As at As at
31 March 2025 31 March 2024
USD '000 USD '000
Trade and other payables 3,400 3,544
3,400 3,544
8. Share capital
Authorised:
10,000,000,000 ordinary shares of GBP 0.01
Issued and fully paid:
Ordinary shares
Number GBP '000 USD '000
Share capital as at 31 March 2023 202,740,730 2,027 2,724
Issued 2 October 2023 18,700,000 187 227
Share capital as at 31 March 2024 221,440,730 2,214 2,951
Share capital as at 31 March 2025 221,440,730 2,214 2,951
The number of shares in issue as at 31 March 2025 includes 4,584,283 treasury
shares - refer to Note 10.
Share premium GBP '000 USD '000
Share premium as at 31 March 2023 492,700 660,203
Proceeds of issue of shares 102,663 124,448
Share issue costs (2,812) (3,418)
Share premium as at 31 March 2024 592,551 781,233
Share premium as at 31 March 2025 592,551 781,233
The Company has one class of shares which carry no right to fixed income.
9. Share-based payments
The Group implemented an equity-settled share-based compensation plan in 2019,
which provides for the award of long-term incentives and an annual bonus to
management personnel.
During the period, USD34,514 was recognised in the statement of comprehensive
income, in relation to share-based payments (31 March 2024: USD24,585).
Annual bonus
The annual bonus award in relation to a financial year is usually granted
following publication of the Group's audited annual results for that financial
year. The annual bonus awards are either in cash or in the form of
nominal-cost options, which usually will vest and become exercisable no
earlier than one year after grant.
In respect of the 2024 and 2025 financial years, annual bonuses were paid in
cash and no share-based annual bonus awards were made. The annual bonus award
in respect of the year ended 31 March 2025 was based on commercial targets
and was 30% of base salary (31 March 2024: 50% of base salary).
Long-term incentive
The Group's long-term incentive was updated during the year under review (the
"Updated LTIP"). The Updated LTIP provides PDMRs with nil-cost options over
shares ("Performance Shares"), awarded on a conditional basis as determined by
the Remuneration Committee. The number of Performance Shares granted each year
is based on the potential maximum LTI for the CEO and CFO, divided by the
higher of the net asset value per Yellow Cake Share and the Yellow Cake share
price on 31 March of the previous financial year. Performance Shares will vest
three years after grant (save in certain circumstances including a change of
control of the Group), subject to the satisfaction of performance conditions
linked to share price performance against comparators and growth in the
Group's uranium holdings and revenue. The Performance Shares are subject to a
post-vesting holding period of not less than two years (although sufficient
shares may be sold on exercise in order to meet tax liabilities arising at
vesting).
The grant of Updated LTIP awards in respect of the financial year ending 31
March 2025 would normally be granted at the start of the financial year but
was deferred pending shareholder consultation. These awards were instead
granted on 27 February 2025.
In the prior financial year, the long-term incentive was in the form of
options granted to acquire shares in the Group that will become exercisable
not earlier than three years after grant and expire 10 years after the date of
grant. The option exercise price is the net asset value per share at the grant
date of the shares placed under option. These options are subject to a
post-vesting holding period of not less than two years (although sufficient
shares may be sold on exercise in order to meet tax liabilities arising at
vesting). The face value (exercise price of the options multiplied by the
number of options granted) of shares subject to the grants may be up to 75%
and 45% of salary for the CEO and CFO respectively. Each option gives the
right to acquire one share in the Group.
Set out below is the summary of the Performance Shares awarded on 27 February
2025 in relation to the year ended 31 March 2025:
Director Grant Exercise Exercise Opening Exercised Expired/ Closing
date date price balance forfeited/other balance
A Liebenberg 27/02/2025 01/04/2027 Nil 23,921 - - 23,921
C Whittall 27/02/2025 01/04/2027 Nil 10,166 - - 10,166
Total 34,087 - - 34,087
Total fair value USD44,066
as at the grant date*
* The USD equivalent is derived using the FX rate as at the date of
reporting.
Set out below is the summary of the long-term incentive options awarded on 26
July 2024 in relation to the year ended 31 March 2024:
Director Grant Exercise Exercise Opening Exercised Expired/ Closing
date date price balance forfeited/other balance
A Liebenberg 26/07/2024 26/07/2027 6.48 29,328 - - 29,328
C Whittall 26/07/2024 26/07/2027 6.48 12,464 - - 12,464
Total 41,792 - - 41,792
Total fair value USD56,535
as at the grant date*
* The USD equivalent is derived using the FX rate as at the date of
reporting.
A Black-Scholes option pricing model was used to determine the fair value of
the long-term incentive options granted in 2024. A Monte Carlo simulation was
used to determine the fair value of the long-term incentive options granted in
2025. The valuation model inputs used to determine the fair value at the grant
date are as follows:
Grant date Vesting Share price at grant date Exercise price Expected Risk-free Fair value at Fair value
GBP GBP volatility interest rate grant date at grant date
GBP USD*
27/02/2025 01/04/2027 4.64 Nil 31% 4.05% 72,148 93,143
26/07/2024 26/07/2027 5.23 6.48 40% 3.96% 46,640 60,212
* The USD equivalent is derived using the FX rate as at the date of
reporting.
10. Treasury shares
Number GBP '000 USD '000
Treasury shares as 31 March 2023 4,636,331 11,033 14,216
Exercise of long-term incentive options (52,048) (123) (155)
Treasury shares as at 31 March 2024 4,584,283 10,910 14,061
Treasury shares as at 31 March 2025 4,584,283 10,910 14,061
On 2 June 2023, following an exercise of share options on 24 May 2023 under
the Yellow Cake plc Share Option Plan 2019, 31,686 ordinary shares held as
treasury shares were transferred at 213p per share to satisfy the exercise.
On 25 July 2023, following an exercise of share options on 19 July 2023 under
the Yellow Cake plc Share Option Plan 2019, 20,362 ordinary shares held as
treasury shares were transferred at 288p per share to satisfy the exercise.
Following these transfers, the total number of treasury shares held by the
Company reduced from 4,636,331 to 4,584,283. The reduction in the value of
treasury shares resulting from the exercise of share options was calculated
based on the weighted average acquisition cost of the treasury shares.
11. Commissions, procurement and consultancy fees
308 Services Limited ("308 Services") provides procurement services to the
Group relating to the sourcing of U(3)O(8) and other uranium transactions and
in securing competitively priced converter storage services.
In terms of the agreement entered into between the Group and 308 Services on
30 May 2018, and amended on 12 June 2018, 308 Services is entitled to receive:
(i) a Holding Fee comprised of a Fixed Fee of USD275,000 per calendar year plus a
Variable Fee equal to 0.275% per annum of the amount by which the value of the
Group's holdings of U(3)O(8) exceeds USD100 million; and
(ii) a Storage Incentive Fee equal to 33% of the difference between the amount
obtained by multiplying the Target Storage Cost (initially set at USD0.12 /lb
per year) by the volume of U(3)O(8) (in pounds) owned by the Group on 31
December of each respective year and the total converter storage fees paid by
the Group in the preceding calendar year.
The Group considers Holding Fees and Storage Incentive Fees to be costs of an
ongoing nature. During the period the Group paid Holding Fees and Storage
Incentive Fees of USD5,411,193 (31 March 2024: USD3,890,270) to 308 Services.
308 Services has not earned the Storage Incentive Fees since 31 December 2022.
308 Services is also entitled to receive commissions equivalent to 0.5% of the
transaction value in respect of certain uranium sale and purchase transactions
completed at the request of the Yellow Cake Board. Commissions in respect of
the financial year payable by the Group to 308 Services were USD500,000 (31
March 2024: USD330,075).
In addition, if the purchase price paid by the Group in respect of such a
purchase transaction is in the lowest quartile of the range of reported
uranium spot prices in the calendar year in which the transaction was agreed,
308 Services is entitled to receive, at the beginning of the following
calendar year, an additional commission of 0.5% of the value of the uranium
transacted. If the purchase price paid by the Group in respect of such a
purchase transaction is in the second lowest quartile of the range of reported
uranium spot prices in the calendar year in which the transaction was agreed,
308 Services is entitled to receive, at the beginning of the following
calendar year, an additional commission of 0.25% of the value of the uranium
transacted. If the purchase price is in the top half of the range for the
calendar year in which the transaction was agreed, no additional commission
will be payable to 308 Services.
The purchase price paid by the Group in respect of the uranium purchase
completed in June 2024 was in the second lowest quartile of the range of
reported uranium spot prices in the 2023 calendar year, being the calendar
year in which the uranium purchase transaction was agreed. The Group therefore
paid an additional commission of USD250,000 in respect of this uranium
purchase transaction equal to 0.25% of the value transacted.
During the period, commissions (including additional commissions) payable to
308 Services totalled USD750,000 (31 March 2024: USD660,150).
12. Storage and other operating expenses
1 April 2024 1 April 2023
to 31 March 2025 to 31 March 2024
USD '000 USD '000
Professional fees 1,227 912
Management Salaries and Directors' fees 1,039 952
Storage and other expenses 7,321 5,545
Auditor's fees 154 108
9,741 7,517
Auditor's fees include interim review fees of USD30,940 (31 March 2024:
USD31,084).
13. Taxation
1 April 2024 1 April 2023
to 31 March 2025 to 31 March 2024
USD '000 USD '000
Tax expense for the year - -
- -
As the Group is managed and controlled in Jersey, it is liable to be charged
tax at a rate of 0% under schedule D of the Income Tax (Jersey) Law 1961 as
amended.
14. Related party transactions
During the year, the Group incurred USD260,806 (31 March 2024: USD181,892) of
administration fees payable to Langham Hall Fund Management (Jersey) Limited
("Langham Hall"). Claire Brazenall is an employee of Langham Hall and has
served as a Non-Executive Director of the Group since 9 November 2022, for
which she has received no Directors' fees. David England is an employee of
Langham Hall and served as Non-Executive Director of subsidiary YCA Commercial
from 14 February 2024 to 22 November 2024, for which he received no Director's
fees. Marie Braun is an employee of Langham Hall and has served as a
Non-Executive Director of YCA Commercial since 22 November 2024, for which she
has received no Director's fees. As at 31 March 2025 there were no amounts
due to Langham Hall (31 March 2024: USD nil).
The following Directors own ordinary shares in the Company as at 31 March
2025:
Name Number of % of share capital
ordinary shares as at 31 March
2025
The Lord St John of Bletso* 26,302 0.01%
Sofia Bianchi 13,186 0.01%
The Hon Alexander Downer 29,925 0.02%
Claire Brazenall - -
Alan Rule 18,837 0.01%
Andre Liebenberg 121,478 0.06%
Carole Whittall 101,966 0.05%
Total 311,694 0.16%
* The Lord St John of Bletso's shares are held through African Business
Solutions Limited, in which he holds 100% of the Ordinary Shares.
While the Non-Executive Directors hold shares in the Company, the holdings are
considered sufficiently small so as not to impinge on their independence.
15. Earnings per share
1 April 2024 1 April 2023
to 31 March 2025 to 31 March 2024
USD '000 USD '000
(Loss)/profit for the year (USD '000) (469,225) 727,006
Weighted average number of shares during the year - Basic* 216,856,447 207,444,702
Weighted average number of shares during the year - Diluted* 217,099,451 207,665,352
(Loss)/earnings per share attributable to the equity owners of the Group (USD)
Basic (2.16) 3.51
Diluted (2.16) 3.50
* The weighted average number of shares excludes treasury shares.
16. Events after the reporting date
In the opinion of the Directors, there are no other significant events
subsequent to the period end that are deemed necessary to be disclosed in the
consolidated financial statements.
1 Average cost calculated based on a first-in, first-out methodology.
2 MineSpans (February 2025).
3 Net asset value per share as at 31 March 2025 is calculated assuming
221,440,730 ordinary shares in issue less 4 584 283 shares held in treasury,
the Bank of England's daily USD/GBP exchange rate of 1.2910 as at 31 March
2025, and the daily spot price published by UxC LLC on 31 March 2025.
4 IEA; The Path to a New Era for Nuclear Energy.
5 Net asset value per share as at 31 March 2025 is calculated assuming
221,440,730 ordinary shares in issue less 4,584,283 shares held in treasury,
the Bank of England's daily USD/GBP exchange rate of 1.291 as at 31 March 2025
and the daily spot price published by UxC LLC on 31 March 2025.
6 Estimated net asset value per share as at 17 July 2025 is calculated
assuming 221,440,730 ordinary shares in issue, less 4,584,283 shares held in
treasury, the Bank of England's USD/GBP exchange rate of 1.3410 as at 17 July
2025 and the daily spot price published by UxC LLC on 17 July 2025.
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