GGG. They are getting screwed over by the Uranium Bill in Greenland. They have an avg 300-400 ppm, of uranium in there ore.
They are a bit stuck at the moment, as the their stock has become somewhat risky to purchase due to the political risk (count down is apparently early November).
The Global X - URA ETF is supporting GGG, via regular purchases (and less often sell downs).
The URA ETF is just shy of $1B USD, and it mandates to hold about 0.40%.
Thankfully EPM doesn't have that problem with the uranium in the Greenland tenements (and any spikes are likely averaged out), we practically had a war of words between GGG/EPM forum members; but educational nonetheless.
Our 2nd March announcement has an Assay table from rock sampling to give you an idea.
EPM's Uranium is in the Northern Territory; so it's a boon with the uranium long term price, and spot price getting upward pressure. (there is a pull back with the spot. But significantly the long term price has moved up to $42 lb) .
Incidentally Global X - URA ETF has EPM on watch; and EPM needs to be about $50M+ USD market cap in December in order to entitled to be in the portfolio.
What might happen in January when they review they might introduce a lot more Uranium / Nuclear Component related companies..
So GGG's 0.40% allocation might reduce to say 0.20% (and more holdings are included etc).
However say EPM gets a 0.40% allocation at $1B USD, that's probably about $5M AUD worth; so that's about 111M shares at 4.5 cents they need to somehow purchase.
Note: the sell side has literally only about ~17M shares; so the only way is UP.
None of this considers the impact of the $65lb Uranium spot price for 2021 CY. I am expecting the URA ETF to get to maybe $1.5B USD by then (Jan/Feb).
--- similar play also with AGE (also on watch) (they were reported to be included into Global X - URA recently, but was a mistake due to an incorrect calculation by a fund analyst using USD instead of AUD). Unfortunately they have a lot of shares available now (it was very limited before) so not expecting their inclusion to be a material impact. They correlate very well with the U-spot price.
Unfortunately some of the other Uranium ETF's (URNM particularly) appear to be struggling with mandates for regular rebalancing, the result they are dumping stock without much care as the stocks have very poor liquidity - especially large parcels.
Sprott Uranium Trust, was not included in the Global X - URA ETF in July re-balance, purely due to technicality.
It was still "unlisted" at the review date.
What does that mean? Well that means as pure-play inclusion it has a likely minimum 0% but probably benchmark about ~5% allocation to a max 22.5% allocation.
Global X - URA ETF, therefore creates a massive feedback loop.
By buying Sprott Uranium Trust - units, it increases the ability for further physical uranium purchases, feed back into upward pressure in the Uranium Spot Price. Once the Uranium is purchases, Sprott does not sell nor lend the uranium (we'll not currently).
Last ginsu-knife, is Sprott Uranium Trust are looking for a NYSE listing (they are currently on the TSX, OTC). So this mean currently it's limited in accessibility. Supposedly also around Jan/Feb.
This may mean that GGG might get re-balanced off the Global X - URA ETF, in Jan/Feb. (however might linger a bit longer also imo).
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