The head of Sprott Asset Management has hit back at suggestions that its aggressive buying of uranium could corner the market for the nuclear fuel and spark regulatory interest.
In an interview with the Financial Times, Sprott chief executive John Ciampaglia said the physical uranium trust that Sprott launched in August would help rebalance the 180m-lb-a-year uranium market — driving prices to a level that spurred greater production of the radioactive material.
The price of raw uranium, known as yellowcake, has risen almost 60 per cent to a nine-year high above $50 a pound since the trust’s launch.
The Canadian asset manager has amassed more than 10m lb of uranium in the ensuing months. It plans to buy even more after increasing the firepower of the trust, which trades on the Toronto stock exchange, from an initial $300m to $1.3bn.
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