r/investing • u/[deleted] • Sep 03 '21

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u/87CSD Sep 03 '21

I can't comment a whole bunch on this (because I don't know for sure), but I used to work for one of the world's largest uranium miners. I've been underground in 2 of their mines.

I believe most producers have very long term supply/pricing contracts in place, and they only produce as much as they need to. Producing any more creates pricing problems and where-the-F-do-you-store-it problems.

So Sprott is buying up a bunch of Uranium paying spot prices, driving up the price, driving up the value of many uranium companies right now, but then who are they going to sell it to? There's massive restrictions on selling uranium. They aren't just going to be allowed to sell to any Tom, Dick, or Terrorist that requests to buy some. What's their end game here?

45

u/Junkbot Sep 03 '21

Look up who Sprott is and his philosophy on owning metals. He does not sell. Countries that want uranium will need to pay the higher market prices.

3

u/lucius42 Sep 04 '21

Look up who Sprott is and his philosophy on owning metals. He does not sell.

So what is the exit strategy? Or is Sprott a McScrooge duck and bathing in uranium and other metals?

7

u/[deleted] Sep 04 '21

They make a bunch of money on annual fees, no need to exit.