Sprott Asset Management CEO says uranium party is just getting underway
Sprott Asset Management is increasingly bullish on uranium, as governments shift back to the metal as a clean energy source.
Sprott has two uranium trusts and a pair of uranium exchange-traded funds (ETFs) available for investors, as the commodity-focused investment firm works to convince investors there’s value in the once-ignored metal.
“We’ve obviously been very active in terms of educating the market about this investment,” John Ciampaglia, chief executive officer at Sprott Asset Management, told BNN Bloomberg in a television interview on Tuesday.
Ciampaglia said his company has remained exposed to the metal as governments looked at other energy options, but now that the focus is back on uranium, there is growth potential.
“Utilities are reloading their inventories of uranium after essentially drawing them down for the greater part of 10 years,” he said.
“This is really in response to the world shifting back to nuclear energy after largely ignoring it for the last 10 years. You expect a supply response to come from the market when the commodity price goes up 80 or 90 per cent and we are starting to see one clearly.”
Canada is the second largest producer of uranium in the world behind Kazakhstan, according to Natural Resources Canada, and the metal has been a focus for governments and experts looking at ways to increase green energy reserves.