Ann: Investment & NTA Update - November 2023, page-2

From the UK Telegraph

"Hedge funds stockpile ‘yellowcake’ as price surges

Up to 50 firms are believed to have bought uranium amid huge global supply deficit.

Other players amassing even larger stockpiles including uranium investment trusts which have built portfolios worth billions of dollars at today’s prices, such as London-listed Yellow Cake Plc and the Toronto-listed Sprott Physical Uranium Trust."

Yellow Cake Plc, the London-listed fund that exists solely to buy uranium and hold it, has amassed a war chest of almost 22 million pounds of the radioactive metal now valued at $1.7bn.And the Sprott Physical Uranium Trust has amassed 63 million pounds, worth about $5.6bn today.

Between them, the two trusts hold the equivalent of around 60pc of global annual supplies.

Analysts at Morgan Stanley have also picked the metal as their top commodity choice, predicting it will surge higher to $95 per pound by the second quarter of 2023.Some investors believe it could surge even higher, as they argue that there is no quick solution to the shortfall. A further 61 new nuclear reactors are under construction globally, as countries seek to slash their carbon emissions, with hundreds more planned.

Mr Benson (of BNF Capital) said his base case predicts uranium spot prices will surge to between $150 and $200 as soon as next year.“I know it sounds crazy,” he added. “But if large macro funds start playing this investment, and sequestering uranium themselves, there aren’t many ways it can go.”

NGE has shares in both worth 26% of the NAV at end November. They rose 10% in December.