“Even though the price is broken out to $100, there’s a lot of opportunity here because you need to basically double production globally between now and 2040,” said John Ciampaglia, CEO of Sprott Asset Management.
Uranium Opportunities in Mining
If global receptiveness for nuclear power use continues to climb alongside prices, then miners will also be in demand in order to alleviate supply constraints. In that case, uranium miners offer an alternate method of exposure to rising prices. Sprott has two ETFs that cater to the stability of large-cap companies or the growth slant offered by small-caps.
For large-cap exposure, there’s the Sprott Uranium Miners ETF (URNM) that tracks the North Shore Global Uranium Mining Index. It invests in global firms that mine, develop, and produce the metal as well as those firms that hold the physical metal or royalties from it.nd’s largest holding, comprising just below 15% of the fund as of January 16.
For even higher growth potential, investors can opt for small-cap companies in the uranium mining space or for a more all-inclusive option in the convenience of an ETF wrapper, the Sprott Junior Uranium Miners ETF (URNJ). The fund seeks to provide investment results that, correspond generally to the total return performance of the Nasdaq Sprott Junior Uranium Miners Index, which tracks mid-, small- and micro-cap companies in the metal’s mining business.
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