Uranium prices have been rallying with spot trading ~$US63.50, the highest level since before the devasting events in Fukushima in March 2011. As countries around the world look to address their carbon footprint, nuclear energy is gaining traction as a viable part of the equation. The Sprott Physical Uranium Trust held in the MM Macro ETF Portfolio has also been a dominant factor in the equation. This vehicle buys and holds physical Uranium on behalf of investors in the Trust and now has a net asset value (NAV) of an astonishing ~$US3.5bn. While there are some conditions around when buying takes place, essentially when new units in the trust are purchased, the trust goes into the market and buys the equivalent amount of Uranium. This year alone the trust has attracted ~$US750m in new capital and has been a contributing factor for spot Uranium prices to move from the mid $US30/lb to now trade in the US$60’s which is a price point high enough to incentivise the restart of some Uranium mines, such as the one owned by Paladin.
MM remains bullish & long Uranium
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