Uranium futures in the US surged nearly 10% to cross the $76 per barrel mark on Monday after the Sprott Physical Uranium Trust said it would buy around $200 million worth of physical uranium for a new fund. The world’s largest uranium fund raised twice the amount it signaled in its underwritten agreement with Canaccord Genuity. Large uranium acquisitions by Sprott, which holds most of its uranium as yellowcake, have commonly been triggers for rallies in prices due to how thin uranium derivatives trade.
The move followed a near 6% jump in yellowcake prices during May as the US government signaled it would support domestic uranium enrichment capacity, cut regulations and accelerate licenses for reactors, and maintain trade restrictions on major nuclear fuel exporters. Demand has also been supported by power-hungry AI datacenters. In the meantime, top miner Kazatomprom noted it would achieve a mid-point production of 14 million pounds, nearly 20% below its guidance from late 2023.
