Time To Consider Trimming Uranium Participation Corp. Due To Material NAV Premium

Summary

Uranium Participation Corp. has seen recent strength after the agreement with Sprott to achieve a liquid U.S. listing.

The company now trades materially above NAV (on my estimates by about 20%), compared to a discount for much of 2020.

Though there are reasons to be constructive on uranium pricing going forward now may be a prudent time to trim exposure or explore substitute vehicles. Ironically, a Sprott fund may not be a way for the premium to NAV to persist, some Sprott funds trade at a discount to NAV as has Uranium Participation Corp. for much of its history. Photo by RHJ/iStock via Getty Images Last summer, I wrote some bullish pieces on Uranium Participation Corp. ( OTCPK:URPTF ) due to a material NAV discount. Now, by way of an update, Uranium Participation Corp’s meaningful premium to net asset value may present an opportunity to trim exposure at […]

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