Kitco News, Released on 9/10/21
The uranium market has been plagued by illiquidity, but with the advent of metal-backed funds, like the Sprott Physical Uranium Trust Fund (SRUUF), the problem of liquidity is alleviated, said Rick Rule, director of Sprott.
The Trust was launched in the summer, following the re-organization of the Uranium Participation Corp., and the price of uranium subsequently rose from $30/lb to above $40/lb on Friday.
Rule told David Lin, anchor for Kitco News, that the current price is still cheap, especially when considering that most uranium producers in North America can’t yet restart operations even with $40/lb. Operations have been suspended due to a combination of uneconomical uranium prices and COVID-19.
Rick Rule, founder and chairman of Sprott Global Resource Investments Ltd., began his career in the securities business in 1974. He is a leading American retail broker specializing in mining, energy, water utilities, forest products and agriculture. His company has built a national reputation on taking advantage of global opportunities in the oil and gas, mining, alternative energy, agriculture, forestry and water industries.