Investors are piling into the Australian sharemarket’s uranium sector in an attempt to front-run a spike in prices as the world’s largest physical uranium fund readies a war chest to splurge on the nuclear fuel.
Uranium stocks – among the most shorted stocks on the ASX – have roared higher this week after Toronto-based asset manager Sprott announced it sold $US100 million ($153 million) worth of units in its physical uranium trust to broker Canaccord Genuity.
Just hours later, Sprott upsized the offering to just over $US200 million because of strong investor demand. It is expected to use that cash to buy an estimated 2.6 million pounds of physical uranium based on current spot prices. The offer is set to close on Friday, meaning Sprott is expected to ramp up buying from next week.
Source: https://www.afr.com/markets/commodities/panicked-investors-rush-to-uranium-stocks-to-front-run-price-spike-20250617-p5m7yv