FX.co ★ Uranium Holds Most of Sprott Surge

Uranium futures in the United States experienced a significant surge of nearly 10%, surpassing the $76 per barrel threshold on Monday. This increase followed the announcement by the Sprott Physical Uranium Trust of its intention to purchase approximately $200 million worth of physical uranium for a new fund. Notably, this move marked a significant fundraising effort, with the world's largest uranium fund raising double the amount originally indicated in its underwritten agreement with Canaccord Genuity. Sprott's substantial acquisitions of uranium, primarily held in the form of yellowcake, have historically triggered price rallies due to the relatively low volume of uranium derivatives traded. This recent development came on the heels of a nearly 6% rise in yellowcake prices in May, spurred by the US government's initiatives to bolster domestic uranium enrichment capabilities, reduce regulations, expedite reactor licensing, and uphold trade restrictions on major nuclear fuel exporters. Additionally, demand has been bolstered by energy-intensive AI data centers. Concurrently, leading uranium producer Kazatomprom reported that it would achieve a midpoint production level of 14 million pounds, reflecting a nearly 20% reduction from its late-2023 guidance.