Weekly Reports | Sep 14 2021
Speculative activity has now pushed the uranium spot price to its highest level since 2014.
By Greg Peel
The Sprott Physical Uranium Trust (SPUT) has lit a fire under the spot uranium market, sending industry consultant TradeTech’s spot price indicator up 39% in the last four weeks – a record in percentage terms. That’s a US$12/lb gain since mid-August.
Having turned over 3.7mlbs U3O8 equivalent the week before last, the spot market last week saw a further 3.8mlbs change hands in four trading days. TradeTech’s weekly spot price indicator rose to US$42.50/lb from US$39.00/lb the week before.
The last time the spot uranium price was above US$40/lb was in November 2014.
SPUT is purely a speculative vehicle which raises money to buy physical uranium, betting on increased demand as the world steps up its efforts to reduce carbon emissions. Last week SPUT filed an amendment to its original prospectus to increase its funds by a further US$1bn.
SPUTs thesis received a boost last week when the state government of Illinois approved a financial support package to head off Exelon Energy’s proposed early closure of its two-unit Byron nuclear plant, and to prop up the company’s financially challenged Braidwood and Dresden plants.