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Billionaire Gold Investor Eric Sprott is on a Uranium Buying Spree

September 30, 2023
x min read

Most know billionaire Eric Sprott for his big bets on gold miners and precious metals companies.

However, he’s now pursuing something else: uranium.

What’s happening:

  • Eric Sprott is one of Canada’s most notable entrepreneurs and financiers for his prolific investments in gold exploration and mining companies
  • He is also the founder of Sprott Inc, which has $25B CAD assets under management
  • Approximately two years ago Sprott Inc purchased a physical uranium holding company which is now known as Sprott Physical Uranium Trust (TSX: U-U)
  • Sprott Physical Uranium Trust has been on a buying spree of physical uranium

By the numbers:

  • Currently, the Sprott Physical Uranium Trust owns 61M pounds of physical uranium which makes them one of the largest owners of uranium globally
  • Sprott Physical Uranium Trust has recently filed to raise $125M of new capital to deepen their bet on uranium

Why it matters:

  • There is a global race happening around nuclear energy being spurred on by governments
  • The price of physical uranium is the highest its been in more than a decade
  • Uranium producers are citing shortages due to increased demand as countries look to build out nuclear energy facilities at an unprecedented pace

Going deeper:

  • As Sprott Physical Uranium Trust raises more capital they will likely accelerate the rate at which they accumulate physical uranium which could have major price implications
  • The price of physical uranium is up 15% in the last month alone and is starting to show signs of a potentially large dislocation between supply and demand

The intrigue:

  • Sprott Physical Uranium Trust is currently buying more physical uranium than every nuclear reactor in the United States combined

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