Sumary of As Uranium Soars, Top Trust Sees Hedge Funds Fueling Demand Lift:
- The Sprott Physical Uranium Trust has itself been on a buying spree, bolstering its stockpile by 45% in four weeks after snapping up 8.1 million pounds of the commodity as prices surged.
- Uranium has soared 40% this month, putting pressure on utility owners and other users when supplies are dwindling and demand is poised to take off with more reactors being built around the world.
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- Article content “I don’t think we’re crowding them out,” said John Ciampaglia, chief executive officer of Sprott Asset Management, which oversees the trust.
- “You’ve got end users that are trying to buy materials, you’ve got speculators and financial intermediaries in the market as well.
- A few uranium development companies bought the physical commodity after raising equity in the capital markets rather than parking the proceeds into cash, he said.
- Still, Sprott’s trust holds about 26 million pounds of uranium, equal to about 14% of the annual consumption from the world’s nuclear reactors.
- The closed-end fund was formed out of an April takeover of Uranium Participation Corp.