London-listed uranium investment company Yellow Cake (YCA) has completed a US$10 million share buyback programme, repurchasing more than 1.36 million shares as the company continues to hold a large physical uranium inventory. The company confirmed that it acquired 1,363,976 shares since 15 June for a total consideration of approximately US$10 million. The repurchased shares were bought at a volume-weighted average price of 544.41 pence per share.
Final buyback purchases completed in July
During the final stage of the programme, conducted between 6 July and 10 July, Yellow Cake purchased 257,976 shares. The final purchases were completed at prices ranging from 525.50 pence to 545.00 pence per share, with an average acquisition price of 535.86 pence during the period.
Following completion of the buyback, Yellow Cake holds 5,948,259 shares in treasury. The company has 251,295,208 shares with voting rights remaining after the completion of the programme.
Physical uranium portfolio remains at 23.11 million pounds
Yellow Cake’s core asset base consists of a physical uranium portfolio containing 23.11 million pounds of U₃O₈.
The uranium inventory is stored in facilities located in Canada and France. The company’s investment model is based on holding physical uranium, with the value of its portfolio linked to uranium market conditions and the relationship between its share price and the underlying value of its uranium holdings.
Buyback changes share exposure to uranium inventory
The share repurchase programme affects the amount of uranium exposure represented by each remaining Yellow Cake share. When the company’s shares trade below the underlying value of its uranium inventory, buybacks can increase the proportional uranium exposure of continuing shareholders.
With the completion of the programme, future share performance will be influenced more directly by movements in the uranium spot price, changes in the company’s discount or premium to net asset value, and market expectations regarding future uranium purchases under Yellow Cake’s supply agreement with Kazatomprom.
