Sprotts Thirst for Uranium Sends Prices Soaring

–News Direct–

The uranium market is in a nuclear upswing, with prices soaring by over 30% to a staggering 12-year high of $72 per pound.1 But, the heat's just getting started.

This remarkable upturn in prices can be attributed to a carefully orchestrated series of events, starting with a dwindling uranium supply and an ever-mounting global demand for cleaner energy sources.

But, at the heart of this spectacle is Sprott Physical Uranium Trust (TSX:U.UN) (OTC:SRUUF), which is buying up supply at a record pace. In the last two years, SPUT, the world's largest and only publicly-listed physical uranium fund, has more than doubled its uranium supply to nearly 62 million pounds.

SPUTs buying spree is expected to continue indefinitely after the recent announcement of its at-the-market equity program,2 which will see the firm issue up to US$125 million in trust units to acquire even more physical uranium.

According to Sprott CEO John Ciampaglia, the current dynamics of the uranium market seem to be more influenced by supply factors than demand. He sees the current uranium bull market rolling on for several more years, especially considering that historical uranium cycles last six to eight years due to the significant capital requirements.

Adding fuel to this uranium price boom are newcomers like ANU Energy from Kazakhstan, jumping into the fray and intensifying the buying activity. With every purchase, the squeeze on supply tightens even more.

Meanwhile, as more reactors are slated to come online worldwide, including the promising small modular reactors (SMRs) in the US, the hunger for uranium grows. But here's the challenge: new uranium mines can take years to bring online, which means the supply will struggle to catch up with the demand for some time.

The influx of capital into the sector has led to expanded production and the reactivation of dormant uranium mines. The keen interest from investors in financing new uranium mines serves as a testament to their confidence in the long-term potential of the sector.

Analysts are now projecting that uranium prices could reach $80 per pound by the end of the year, with further increases anticipated over the next 10 to 20 years. These price projections are a reflection of the expectation of sustained demand for large-scale, uninterrupted, low-carbon power until a viable alternative emerges.

Canaccord analyst Katie Lachapelle expects total nuclear capacity to grow at an annual growth rate of 3.6% through 2030, marking a significant 30% increase in annual uranium demand through 2030. Of course, it could be much more as the forecast doesnt include small modular reactors, which are under construction or in the licensing stage in the US, Canada, China, Russia, South Korea and Argentina.

The Run on the Uranium Bank: Focusing on Royalties, Payments and Mine Interests

With prices on a meteoric rise, uranium ETFs and stocks have become the talk of the town, capturing attention like never before. However, fresh insights from Katusa Research reveal one standout player that could outshine them all.

For those who are unfamiliar, Katusa Research is a highly reputable investment research firm founded by the illustrious Marin Katusa.

Katusa Research just released a report on Uranium Royalty Corp. (NASDAQ:UROY) (TSX:URC), a trailblazer in the uranium sector with interests in the world's top uranium mines.

Founded by the leaders of Uranium Energy Corp. (NYSE-A:UEC), one of the most well-known uranium companies worldwide, Uranium Royalty went public in 2019 and has since secured multiple deals with major global uranium players, including Cameco Corporation (NYSE:CCJ), Orano, and Paladin Energy Limited (ASX:PDN).

In 2021, Uranium Royalty became the top-performing royalty company in the resource sector, reaching almost C$7.00 per share. However, despite its outstanding performance, UROY remains at half its 2022 peak even as uranium prices continue to rise.

The company is led by CEO Scott Melbye, a veteran with 40 years in the uranium industry with extensive experience including leadership roles at Cameco, Uranium Energy Corp., and advisory positions with global uranium companies.

Under Melbye's leadership, Uranium Royalty Corp. (NASDAQ:UROY) (TSX:URC) strategically invested over $65 million in physical uranium when prices were favorable, resulting in substantial capital gains. This strategic move provides the company with holdings that can be liquidated when needed, but its primary focus remains on aggressive investments in new royalties and streams.

Uranium Royalty's royalty model offers a unique advantage. It allows them to receive cash from mines they invest in for a lifetime, sharing in the success of profitable mines. As uranium prices rise, the sector will inevitably attract more players. However, Uranium Royalty already boasts a six-year advantage over potential competitors.

The companys strategy is straightforward: finance mine development or expansion and, in return, receive a percentage of the revenue. This approach, distinct from taking on high-interest debt or diluting equity through stock sales, positions Uranium Royalty as a valuable partner to mine founders, who retain their equity.

Uranium Royalty Corp. (NASDAQ:UROY) (TSX:URC) has smartly diversified with 18 royalty interests, mirroring the success blueprint of gold-sector giants like Franco-Nevada. Its interests include the world's top uranium mines, McArthur River, and Cigar Lake, giving the company a significant presence in the Athabasca Basin. McArthur River, the world's top uranium mine, boasts exceptionally high ore grades and licensed capacity. Cigar Lake, the second-highest grade mine globally, produced 14% of the world's uranium in 2022. Uranium Royalty's interests in these mines promise substantial cash flows as uranium prices rise.

When you consider the companys business model and the masterminds behind it, its no surprise to see large funds like Global X Uranium ETF and Sprott Uranium Miners investing in UROY.

As the world increasingly embraces nuclear power, Uranium Royalty is uniquely positioned as the only uranium royalty company globally and is poised to benefit from the booming uranium market.

Read Katusas in-depth report here to learn more about the new uranium bull market and Uranium Royalty Corp. (NASDAQ:UROY) (TSX:URC)

[1] https://numerco.com/NSet/aCNSet.html

[2] https://finance.yahoo.com/news/sprott-physical-uranium-trust-announces-185900997.html


1) The author of the Article, or members of the authors immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.

2) The Article was issued on behalf of and sponsored by, Katusa Research. Market Jar Media Inc. has or expects to receive from Katusa Researchs Digital Marketing Agency of Record (Native Ads Inc) one thousand one hundred USD for this article.

3) Statements and opinions expressed are the opinions of the author and not Market Jar Media Inc., its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by Market Jar Media Inc. for this Article. Market Jar Media Inc. was not paid by the author to publish or syndicate this Article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Market Jar Media Inc. requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Market Jar Media Inc. relies upon the authors to accurately provide this information and Market Jar Media Inc. has no means of verifying its accuracy.

4) The Article does not constitute investment advice. All investments carry risk and each reader is encouraged to consult with his or her individual financial professional. Any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Market Jar Media Inc.'s terms of use and full legal disclaimer as set forth here. This Article is not a solicitation for investment. Market Jar Media Inc. does not render general or specific investment advice and the information on PressReach.com should not be considered a recommendation to buy or sell any security. Market Jar Media Inc. does not endorse or recommend the business, products, services or securities of any company mentioned on PressReach.com.

5) Market Jar Media Inc. and its respective directors, officers and employees hold no shares for any company mentioned in the Article.

6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, forward-looking statements), which reflect management's expectations regarding Katusa Research.s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as predicts, projects, targets, plans, expects, does not expect, budget, scheduled, estimates, forecasts, anticipate or does not anticipate, believe, intend and similar expressions or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Katusa Research.s industry; (b) market opportunity; (c) Katusa Researchs business plans and strategies; (d) services that Katusa Research intends to offer; (e) Katusa Researchs milestone projections and targets; (f) Katusa Researchs expectations regarding receipt of approval for regulatory applications; (g) Katusa Researchs intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Katusa Researchs expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of managements experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Katusa Researchs business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Katusa Researchs ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) Katusa Researchs ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) Katusa Researchs ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Katusa Research to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Katusa Researchs operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Katusa Researchs business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Katusa Researchs business operations (e)

Katusa Research may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, Katusa Research undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Katusa Research nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Katusa Research nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Katusa Research or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Katusa Research or such entities and are not necessarily indicative of future performance of Katusa Research or such entities.

8) Investing is risky. The information provided in this article should not be considered as a substitute for professional financial consultation. Users should be aware that investing in any form carries inherent risks, and as such, there is a possibility of losing some or all of their investment. The value of investments can fluctuate significantly within a short period, and investors must understand that past performance is not indicative of future results. Additionally, users should exercise caution as transactions involving investments may be irreversible, even in cases of fraud or accidental actions. It is crucial to acknowledge that rapidly evolving laws and technical issues can have adverse effects on the usability, transferability, exchangeability, and value of investments. Furthermore, users must be cognizant of potential security risks associated with their investment activities. Individuals are strongly encouraged to conduct thorough research, seek professional advice, and carefully evaluate their risk tolerance before engaging in any investment endeavors. Market Jar Media Inc. is neither an investment adviser nor a broker-dealer. The information presented on the website is provided for informative purposes only and is not to be treated as a recommendation to make any specific investment. No such information on PressReach.com constitutes advice or a recommendation.

Contact Details

James Young

+1 800-340-9767


Company Website


View source version on newsdirect.com: https://newsdirect.com/news/sprotts-thirst-for-uranium-sends-prices-soaring-878109933


comtex tracking


About Author

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Feature Georgia Heralds was involved in the writing and production of this article.