Most know billionaire Eric Sprott for his big bets on gold miners and precious metals companies.
However, he’s now pursuing something else: uranium.
What’s happening:
- Eric Sprott is one of Canada’s most notable entrepreneurs and financiers for his prolific investments in gold exploration and mining companies
- He is also the founder of Sprott Inc, which has $25B CAD assets under management
- Approximately two years ago Sprott Inc purchased a physical uranium holding company which is now known as Sprott Physical Uranium Trust (TSX: U-U)
- Sprott Physical Uranium Trust has been on a buying spree of physical uranium
By the numbers:
- Currently, the Sprott Physical Uranium Trust owns 61M pounds of physical uranium which makes them one of the largest owners of uranium globally
- Sprott Physical Uranium Trust has recently filed to raise $125M of new capital to deepen their bet on uranium
Why it matters:
- There is a global race happening around nuclear energy being spurred on by governments
- The price of physical uranium is the highest its been in more than a decade
- Uranium producers are citing shortages due to increased demand as countries look to build out nuclear energy facilities at an unprecedented pace
Going deeper:
- As Sprott Physical Uranium Trust raises more capital they will likely accelerate the rate at which they accumulate physical uranium which could have major price implications
- The price of physical uranium is up 15% in the last month alone and is starting to show signs of a potentially large dislocation between supply and demand
The intrigue:
- Sprott Physical Uranium Trust is currently buying more physical uranium than every nuclear reactor in the United States combined
