Yellow Cake has an option to acquire up to one hundred million dollars worth of uranium each year from the Kazakh group Kazatomprom. The material is then stored by Cameco and Orano in Canada and France.

Kazakhstan produces 43% of the world's uranium, more than twice as much as second-placed Canada. Next come Namibia, Australia and Uzbekistan. Between them, these five countries control 85% of world production.

Yellow cake, whose well-crafted presentations provide monthly updates on the dynamics of the uranium market, is currently trading at £4.06 per share, for an estimated net asset value of £4.58, a discount of 11%.

The risk doesn't lie in the exchange rate between sterling and the US dollar - since the latter is rather at the low end of its historical average. Rather, the issue is the spot price of uranium, which was halved in the wake of Fukushima but is now back on its fifteen-year all-time highs.

While there is every reason to believe that nuclear power will bounce back after a lost decade, experience shows that supply has always adapted to demand, without encountering capacity problems.

Between highs at $60 a pound and lows at $20 a pound, a return to the mean cannot be ruled out, and this is no doubt what the market is already anticipating by valuing Yellow Cake at a slight discount.