May. 12 at 6:12 PM
Fyi. The uranium price just jumped higher today. Now >71USD/lb
One of the reasons:
The last couple of months, due to general risk-off stockmarket, Sprott Physical Uranium Trust share price wasn’t able to get back to NAV.
By consequence no ATM activation, no additional cash for uranium purchase and very small part needed to pay the daily storage cost of their physical uranium.
Many utilities, Intermediaries and producers short of uranium were hoping that SPUT would sell a couple 100k lb to get cash to pay for the daily storage cost
Well,today they raised 25.5M USD AT a 9% PREMIUM to the current share price, namely at NAV
In other words SPUT just said: “Dream on, we are not selling any uranium lbs”
Consequence: utilities, intermediaries and some producers are now looking at the spotmarket again to get those lbs they miss
Long term supply contracts are being signed with a floor of 80-85 USD/lb and a ceiling of 130 USD/lb escalated with inflation
$URNJ $CCJ $EU $BNNLF $LAM.TSX