Azvalor Asset Management, SGIIC, S.A. on Yellow Cake plc
Thesis
Yellow Cake was one of the main positions added to Azvalor International SICAV during the first half of 2026. The vehicle follows a value-oriented approach drawing from Azvalor Internacional and selected Iberian ideas, and the letter reports a 12% average free cash flow yield, 20% weighted average ROCE and estimated portfolio upside of 82%. Azvalor’s broader process is to recycle capital from appreciated holdings into businesses it regards as deeply undervalued in order to preserve upside. The letter does not provide a company-specific operating thesis for Yellow Cake beyond identifying it as a major new position.
“The main positions added during the period were Yellow Cake and Borr Drilling.”