New physical uranium investment fund. excellent prospects for companies in the sector
Spot uranium prices are very high, with the prospect of an increase in the use of nuclear energy due to the fight against carbon emissions. the price has returned to $ 47 per pound (454 g), very close to its all-time high
Today's news pushed up prices, especially the surprise news from Kazakhstan, where the world's largest producer and seller of natural uranium, Kazatomprom, responsible for supplying about 40% of global primary uranium, has announced today that it will participate in a physical uranium investment fund, ANU Energy OEIC Ltd. (“ANU Energy”), set up at the Astana International Financial Center (AIFC).
According to the press release , the Fund will hold physical uranium as an investment for a long time and the initial investment will be equal to 50 million US dollars, coming from Kazatomprom at 48.5%, National Investment Corporation of the National Bank of Kazakhstan (NIC) 48.5% and Genchi Global Limited (the Fund Manager) 3%.
Similar to Sprott, which massively increased its physical uranium fund a few days after its launch, Kazatomprom said that “once the fund is operational, a second phase of development is expected to be carried out through a public or private offering. additional, with the timing and details being determined by market conditions. " In the second phase, the Fund is expected to raise capital of up to US $ 500 million from institutional and / or private investors, with the proceeds to be used for further uranium purchases.
"The Fund will leverage the combination of Kazatomprom's experience in the uranium market and the proven track record of NIC, with the AIFC offering investors direct exposure to the attractive opportunity presented by the long-term fundamentals of the uranium market. uranium and the nuclear industry, ”said Mazhit Sharipov, chief executive of Kazatomprom. "The establishment of ANU Energy is a project that has been in development for nearly four years as part of Kazatomprom's broader value strategy and the Fund will operate in a tight supply context, generating positive benefits for its stakeholders."
This means that another competitor enters the market who is willing to buy uranium even without the possibility of immediate sale. This will bring prices up because in any case, even in times of low, there would be operators willing to buy only with a view to rising. The outlook for more stable and higher prices will obviously improve earnings prospects for companies in the sector, with better stock prices.
Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.
The article New investment fund in physical uranium. excellent prospects for companies in the sector comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/nuovo-fondo-di-investimento-in-uranio-fisico-ottime-prospettive-per-le-aziende-del-settore/ on Mon, 18 Oct 2021 16:58:43 +0000.