Move over Sprott: Another uranium fund is removing yellowcake from the tightening spot market
In August, the Sprott Physical Uranium Trust (SPUT) started buying up physical uranium, taking it out of market circulation.
It has been a proverbial “can of kerosene” on the spot price, which has since risen from ~$32/lb to about ~$US47/lb currently.
SPUT has stacked (removed) over 15.3m pounds of uranium since inception. A gigawatt-class reactor uses around 450,000 pounds per year, so this is no small amount, says 808s Online, a blog run by a US nuclear professional.
Now another fund has joined the party; ANU Energy OEIC, backed by the world’s largest uranium producer Kazatomprom.
Like SPUT, the fund will hold physical uranium as a long-term investment, with its initial purchases financed through the founders’ round investment totalling $US50m (48.5% from Kazatomprom, 48.5% from the National Investment Corporation of the National Bank of Kazakhstan (NIC), and 3% from fund manager Genchi Global).
The fund is then expected to raise capital of up to $US500 million from institutional and/or private investors, with the proceeds to be used for additional uranium purchases.
“The Fund will leverage the combination of Kazatomprom’s expertise in the uranium market and NIC’s proven track record, with the AIFC offering investors direct exposure to the attractive opportunity presented by the long-term fundamentals of the uranium market and nuclear industry,” said Mazhit Sharipov, CEO of Kazatomprom.
“The establishment of ANU Energy is a project that has been in development for almost four years as part of Kazatomprom’s broader value-focused strategy, and the Fund will be operating in an environment of tightening supply, driving positive benefits for its stakeholders.”
— Brandon Munro (@brandon_munro) October 18, 2021