Primary Recommendation

Yellow Cake - Best vehicle to play resurgent uranium price

December 2018

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Yellow Cake, which listed on AIM last July at 200p, is one of the more unusual companies I’ve alighted on in the 18 years that I’ve edited The Momentum Investor. It is the only listed company in London that allows investors a pure way to profit from a rise in the price of uranium and having raised US$200m in an oversubscribed placing, around US$178m has already been deployed to purchase uranium ore, which is now sitting securely in a Canadian warehouse. Intriguingly, the vast majority was purchased for US$21.01 / lb and with the price having since risen to US$27.60, it’s already registered a nice profit, lifting net asset value (NAV) per share to 242p.Yellow cake doesn’t own any uranium mines or trading busi ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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