Many thanks for outlining the reason behind the increase. I was...

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Veritas2000

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14/09/21

17:07

Post #: 56058637
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Originally posted by CoffeeScroll: ↑

OK so it seems a few people don't know what's happening and why Uranium stocks are up. There is a new buyer on the Uranium market called Sprott. The Uranium trust they run has an objective to buy Uranium on the spot market, purely to hold as there is no selling mechanism built into the trust at all.

Sprott is aiming for a healthy spot price to restart many mothballed mines. They are aggressive and won’t stop buying. They’ve only spent roughly $325 mil so far buying Uranium at spot price pushing the spot price from $30 to $42 and can go up to $1.3b, look at the disruption done with 1/4 of their current max buying power. The WSB guys are pouring money into Sprott to force them to buy more, they have no sell mechanism in place so will continue to buy on the spot market. So $325M has done this damage so far, what happens when the spot market dries up? Mines take 12 months at least to bring back online so it’s going to get scarce. There is literally no way for the stop price to substantially go down when Sprott has the imperative and the capital to buy up whatever is available. They haven't bought in the last few days because of the announcement for the increased max of $1.3B but that will change tomorrow (I think?) It’s my personal opinion but from what I can see, hold onto your hats it’s going to be a wild ride.

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Many thanks for outlining the reason behind the increase. I was aware of it but did not feel it would assist passing this information on to this forum.

92E Price at posting: 77.0¢ Sentiment: Sell Disclosure: Not Held
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0 Great analysis

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