Sprott’s buying spree a ‘can of kerosene’ on uranium market set to explode

Sprott’s buying spree a ‘can of kerosene’ on uranium market set to explode

Last week, the Sprott Physical Uranium Trust (SPUT) started buying up physical uranium, taking it out of market circulation.

Sprott is selling new shares and use the proceeds to buy physical uranium, scooping up about 900,000 pounds in all.

A gigawatt-class reactor uses around 450,000 pounds per year, so this is no small amount, says 808s Online, a blog run by a US nuclear professional. The news sparked a 10% gain in the uranium spot price to one-year highs.

“Along with other recent raises, Sprott (and its direct predecessor, the Uranium Participation Corporation) has in 2021 bought up more than 1% of the annual mined supply of the commodity, taking it out of circulation and into long-term storage,” he says.“It would be the uranium story of 2021 even if there was no more story to tell, but there are still four months left in the year and a lot of rope left […]

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