There’s two types of speculators in the uranium space.
Those waiting for the spot price to go up before they commit capital... And those that are up triple digits this year as the catalysts continue to stack up while the spot price remains relatively flat.
No judgments.
It happened in copper. It’ll happen in gold. And right now it’s happening in uranium.
Though the move in the better uranium names — and you can count all of them on just two hands — has been fun to experience and good for the portfolio... it’s just the start.
The most recent catalyst, which will also be extremely consequential for the velocity of the coming run, is yesterday’s announcement that Sprott Asset Management is taking over management of Uranium Participation Corp. (TSX: U)(OTC: URPTF).
Other than uranium miners, Uranium Participation Corp. is the world’s largest publicly-traded uranium investment vehicle.
At the end of March 2021, it reported holding 16.26 million pounds of U3O8 and 300,000 KgU as UF6, with a then market value of approximately C$665 million.
The deal aims to leverage Sprott’s 200,000 investors to improve trading liquidity.
Once the transaction is completed, the Sprott Physical Uranium Trust will seek a dual listing (in Canada & the U.S.).
The very simple implication is this is going to drastically enhance access to the everyday speculator/investor who wants to be able to force purchases of physical uranium.
If you thought the Reddit Gamestop squeeze was fun... wait until the uranium spot price starts surging higher and the utilities realize they overplayed their hand assuming low prices and long lead times to lock in future supply at low prices.
The newly structured vehicle with dual listings will appeal to retail, funds, and high net worth individuals equally and simultaneously.
All the pieces for a raging uranium bull market were already in place prior to this announcement.
This will light a fire in the space, expedite the bull run, and magnify it to levels I don’t think many can appreciate right now.