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

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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