Uranium Week: Kazatomprom’s New Fund

Weekly Reports | Oct 19 2021

After last week’s 23% rise in the weekly spot uranium price, Kazatomprom begins the new week by announcing the establishment of a new physical uranium fund.

-Kazatomprom to hold uranium as a long-term investment in a new fund
-France to spend -US$1.2bn on a new-generation of small modular reactors
-Utilities expected to enter the uranium market over next 12 months
-ASX-listed Lotus Resources makes highly-accretive acquisition
-Uranium spot price rises 23% for the week

By Mark Woodruff

Kazatomprom, the world's largest producer of uranium, has announced it will participate in a physical uranium fund that will hold uranium as a long-term investment.

The fund, named ANU Energy, will be part of Kazatomprom’s broader value-focused strategy and will be the first to provide potential direct access for emerging market investors

It will be established on the Astana International Financial Centre (AIFC), a financial hub for regions including Central Asia, the Caucasus, the Middle East, West China, Mongolia and Europe. As such, the fund may appeal to investors looking to diversify away from existing US dollar/British pound denominated funds.

Kazatomprom will initially have 48.5% ownership of the fund, as will the National Investment Corporation of the National Bank of Kazakhstan (NIC). The balance will be held by the fund manager Genchi Global Limited.

Initial uranium purchases will be financed through the founders’ round investment totaling US$50m. A second stage of development is expected to be carried out through an additional public or private offering of up to US$500m, with the proceeds to be used for additional uranium purchases. 

Country news  

President Emmanuel Macron said last week that France would work to become a leader in green hydrogen by 2030, and build new, smaller nuclear reactors.

Macron unveiled a five-year investment plan calling for an investment of -US$1.2bn to create a new-generation of small modular reactors (SMRs). They are seen as cheaper to build than conventional nuclear plants and provide enhanced safety features.

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