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Uranium Investment Options: How to Access the Market

Now that the U3O8 spot price has edged above US$30 per pound, investors are looking for ways to get uranium exposure and benefit from its positive price trend.
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After holding in bear market territory for the bulk of the last five years, uranium surged ahead in 2020 as one of the year’s top-performing commodities.

As pandemic-related production challenges impeded supply, interest in the energy fuel soared, with new groups of investors discussing the burgeoning bull market and the future of the space.

Now that the U3O8 spot price has edged above US$30 per pound, these market participants are looking for ways to get uranium exposure so they can benefit from its positive price trend.

 

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Unlike the gold and silver space, which has various entry points for investors, those looking to expose themselves to the uranium market have fairly limited choices.

Purchasing shares of miners is one of the most common ways to gain entry to the market. Those with a longer-term outlook may want to look beyond miners to explorers and developers, which offer opportunities to profit from the future uranium market and the growing clean energy push.

But what about investors who want to go beyond typical uranium stocks? Physical exposure, as well as exchange-traded funds (ETFs) and utility companies, are other options for broad sector or commodity-only exposure to uranium. Read on to learn about these alternate uranium investment strategies and how they can fit into a portfolio.

Uranium investment options: Physical trusts

The latest way to get involved in the uranium space is via Sprott’s (TSX:SII,NYSE:SII) new trust.

The firm, known for its US$12 billion in assets under management, recently turned its attention to the uranium market. Through a definitive agreement, Uranium Participation (UPC) (TSX:U,OTC Pink:URPTF) shareholders will see their holdings converted to units of the Sprott Physical Uranium Trust.

UPC holds physical uranium in two forms: uranium oxide in concentrate, also known as U3O8, and uranium hexafluoride (UF6). In an April announcement, Sprott calls UPC, “the world’s largest publicly traded investment vehicle providing investors an opportunity to gain exposure to the price of uranium, outside of a traditional mining company.”

As of March 31, 2021, UPC’s reported holdings included 16,269,658 pounds of U3O8 and 300,000 kilograms of uranium as UF6; the market value at the time was approximately C$665 million.

“We believe our global brand, fund marketing experience, and client base of more than 200,000 investors will improve trading liquidity and grow UPC’s asset base during what we believe is the start of a bull market for physical uranium,” said John Ciampaglia, CEO of Sprott Asset Management.

The trust has an estimated launch date of late Q2 or early Q3 of this year. At that time, Sprott will seek to have the entity dually listed on the TSX and NYSEARCA, like its other physical trusts.

 

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Uranium investment options: ETFs

ETFs allow investors to access the uranium market broadly. With exposure to a basket of companies, they often include top-tier miners and explorers, as well as royalty and holding companies.

One of the top-performing uranium ETFs following the 2020 market downturn is the North Shore Global Uranium Mining ETF (ARCA:URNM). After slipping to US$16.71 in mid-March of last year, the ETF has rocketed up by more than 300 percent. Shares were valued at US$69.68 as of June 2.

The ETF provides exposure to 10 uranium-focused companies with operations around the globe, including Cameco (TSX:CCO,NYSE:CCJ), Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU), NexGen Energy (TSX:NXE,NYSEAMERICAN:NXE), Paladin Energy (ASX:PDN,OTCQX:PALAF) and UPC.

Tim Rotolo, CEO of North Shore, credits two factors for the ETF’s positive share performance.

“The institutional appreciation for nuclear’s role in decarbonization of the global economy has become much more widely appreciated,” he told the Investing News Network.

“As a result, the uranium-mining equities as a proxy to play have become much more popular. We’ve seen very positive inflows — performance this year has been exceptional.”

Launched in 2017, the North Shore ETF has added 60 percent to its value in 2021. The growth was largely driven off the success the commodity experienced in 2020. However, as the CEO and founder noted, last year was a tipping point for issues that had been growing in the sector over the last decade.

“You have a situation where COVID accelerated the appreciation for just how significant the supply deficit is,” he said. “But it comes down to economics 101, there’s not enough supply at today’s price.”

Rotolo cited the advancement of small modular reactors — a priority topic for US President Joe Biden — as well as new reactor capacity and life extension for current reactor fleets, as mounting factors that current production levels cannot meet.

Aside from that, there are more than 50 nuclear reactors under various stages of construction around the world, with start dates slated over the next five years. Once operational, the global fleet will consist of roughly 490 reactors in 32 countries by 2027.

 

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Uranium investment options: Utility companies

Investing in utility companies that produce electricity through nuclear energy is another alternative entry point to the market. The relationship between utilities and uranium producers is often cited as the reason the sector is so opaque. Responsible for the vast majority of U3O8 purchases, utilities sign contracts to procure the energy fuel years in advance.

For the last three years, there has been speculation that these companies will soon be entering new purchase agreements. These movements would likely translate to price upside due to tightening supply.

So far that utilities action has yet to materialize, although with the U3O8 spot price holding in the US$28 range and rising, deals may be near. “I think we’re closer now than we were before,” said Rotolo. “It’s one of the most vexing questions out there.”

He went on to note that utility companies are not “incentivized buyers” like hedge funds, for example. Positive price trends are a catalyst for hedge fund managers to purchase uranium, while utilities have to consider the totality of the fuel cycle.

“I think there’s a number of data points that point to us being certainly much closer today than we have been in the last several years,” he continued. “We’ve seen work that says that contracts are rolling off, and there’s a ton of uncovered demand out there. But I think directionally we have a good sense that there is a real need to come to market over the next 12 to 24 months.”

With the US Section 232 petition in the rear view, geopolitical tensions easing and Russian suspension deals finalized, many factors that were believed to be keeping utilities away have been addressed.

Another potential motivator is the amount of spot purchasing that producers are doing to cover current contracts. As output disruptions in 2020 depressed production tallies, several majors have turned to the spot market to make up the difference.

As Rotolo explained, all these dynamics have been further emboldened by the Sprott announcement.

“I think this Sprott thing has the potential to really move the needle,” he said, noting that several uranium majors and royalty companies have made spot market purchases. “If Sprott comes in and they’re in the market every day, I have to imagine that these utilities are going to feel a little bit of pressure.”

This is an updated version of an article first published by the Investing News Network in 2013. 

Don’t forget to follow us @INN_Resource for real-time updates! 

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content. 

The Investing News Network does not guarantee the accuracy of the information reported in the interviews it conducts. The opinions expressed do not reflect the opinions of the Investing News Network. All readers are encouraged to perform their own due diligence.

 

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Study: Life’s building blocks are surprisingly stable in Venus-like conditions

If there is life in the solar system beyond Earth, it might be found in the clouds of Venus. In contrast to the planet’s blisteringly inhospitable surface,…

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If there is life in the solar system beyond Earth, it might be found in the clouds of Venus. In contrast to the planet’s blisteringly inhospitable surface, Venus’ cloud layer, which extends from 30 to 40 miles above the surface, hosts milder temperatures that could support some extreme forms of life. 

Credit: Credit: JAXA/J. J. Petkowski

If there is life in the solar system beyond Earth, it might be found in the clouds of Venus. In contrast to the planet’s blisteringly inhospitable surface, Venus’ cloud layer, which extends from 30 to 40 miles above the surface, hosts milder temperatures that could support some extreme forms of life. 

If it’s out there, scientists have assumed that any Venusian cloud inhabitant would look very different from life forms on Earth. That’s because the clouds themselves are made from highly toxic droplets of sulfuric acid — an intensely corrosive chemical that is known to dissolve metals and destroy most biological molecules on Earth. 

But a new study by MIT researchers may challenge that assumption. Appearing today in the journal Astrobiology, the study reports that, in fact, some key building blocks of life can persist in solutions of concentrated sulfuric acid. 

The study’s authors have found that 19 amino acids that are essential to life on Earth are stable for up to four weeks when placed in vials of sulfuric acid at concentrations similar to those in Venus’ clouds. In particular, they found that the molecular “backbone” of all 19 amino acids remained intact in sulfuric acid solutions ranging in concentration from 81 to 98 percent.  

“What is absolutely surprising is that concentrated sulfuric acid is not a solvent that is universally hostile to organic chemistry,” says study co-author Janusz Petkowski, a research affiliate in MIT’s Department of Earth, Atmospheric and Planetary Sciences (EAPS).

“We are finding that building blocks of life on Earth are stable in sulfuric acid, and this is very intriguing for the idea of the possibility of life on Venus,” adds study author Sara Seager, MIT’s Class of 1941 Professor of Planetary Sciences in EAPS and a professor in the departments of Physics and of Aeronautics and Astronautics. “It doesn’t mean that life there will be the same as here. In fact, we know it can’t be. But this work advances the notion that Venus’ clouds could support complex chemicals needed for life.”

The study’s co-authors include first author Maxwell Seager, an undergraduate in the Department of Chemistry at Worcester Polytechnic Institute and Seager’s son, and William Bains, a research affiliate at MIT and a scientist at Cardiff University.

Building blocks in acid

The search for life in Venus’ clouds has gained momentum in recent years, spurred in part by a controversial detection of phosphine — a molecule that is considered to be one signature of life — in the planet’s atmosphere. While that detection remains under debate, the news has reinvigorated an old question: Could Earth’s sister planet actually host life? 

In search of an answer, scientists are planning several missions to Venus, including the first largely privately funded mission to the planet, backed by California-based launch company Rocket Lab. That mission, on which Seager is the science principal investigator, aims to send a spacecraft through the planet’s clouds to analyze their chemistry for signs of organic molecules. 

Ahead of the mission’s January 2025 launch, Seager and her colleagues have been testing various molecules in concentrated sulfuric acid to see what fragments of life on Earth might also be stable in Venus’ clouds, which are estimated to be orders of magnitude more acidic than the most acidic places on Earth.

“People have this perception that concentrated sulfuric acid is an extremely aggressive solvent that will chop everything to pieces,” Petkowski says. “But we are finding this is not necessarily true.”

In fact, the team has previously shown that complex organic molecules such as some fatty acids and nucleic acids remain surprisingly stable in sulfuric acid. The scientists are careful to emphasize, as they do in their current paper, that “complex organic chemistry is of course not life, but there is no life without it.” 

In other words, if certain molecules can persist in sulfuric acid, then perhaps the highly acidic clouds of Venus are habitable, if not necessarily inhabited. 

In their new study, the team turned their focus on amino acids — molecules that combine  to make essential proteins, each with their own specific function. Every living thing on Earth requires amino acids to make proteins that in turn carry out life-sustaining functions, from breaking down food to generating energy, building muscle, and repairing tissue. 

“If you consider the four major building blocks of life as nucleic acid bases, amino acids, fatty acids, and carbohydrates, we have demonstrated that some fatty acids can form micelles and vesicles in sulfuric acid, and the nucleic acid bases are stable in sulfuric acid. Carbohydrates have been shown to be highly reactive in sulfuric acid,” Maxwell
Seager explains. “That only left us with amino acids as the last major building block to
study.”

A stable backbone

The scientists began their studies of sulfuric acid during the pandemic, carrying out their experiments in a home laboratory. Since that time, Seager and her son continued work on chemistry in concentrated sulfuric acid. In early 2023, they ordered powder samples of 20 “biogenic” amino acids — those amino acids that are essential to all life on Earth. They dissolved each type of amino acid in vials of sulfuric acid mixed with water, at concentrations of 81 and 98 percent, which represent the range that exists in Venus’ clouds. 

The team then let the vials incubate for a day before transporting them to MIT’s Department of Chemistry Instrumentation Facility (DCIF), a shared, 24/7 laboratory that offers a number of automated and manual instruments for MIT scientists to use. For their part, Seager and her team used the lab’s nuclear magnetic resonance (NMR) spectrometer to analyze the structure of amino acids in sulfuric acid. 

After analyzing each vial several times over four weeks, the scientists found, to their surprise, that the basic molecular structure, or “backbone” in 19 of the 20 amino acids remained stable and unchanged, even in highly acidic conditions.

“Just showing that this backbone is stable in sulfuric acid doesn’t mean there is life on Venus,” notes Maxwell Seager. “But if we had shown that this backbone was compromised, then there would be no chance of life as we know it.” 

The team acknowledges that Venus’ cloud chemistry is likely messier than the study’s “test tube” conditions. For instance, scientists have measured various trace gases, in addition to sulfuric acid, in the planet’s clouds. As such, the team plans to incorporate certain trace gases in future experiments. 

“There are only a few groups in the world now that are working on chemistry in sulfuric acid, and they will all agree that no one has intuition,” adds Sara Seager. “I think we are just more happy than anything that this latest result adds one more ‘yes’ for the possibility of life on Venus.”

###

Written by Jennifer Chu, MIT News

Paper: “Stability of 20 Biogenic Amino Acids in Concentrated Sulfuric Acid: Implications for the Habitability of Venus’ Clouds”

https://www.liebertpub.com/doi/10.1089/ast.2023.0082


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John Lewis relies too heavily on its heritage – here’s what it could do instead

The company has returned to profit by making cuts, but there are things it could do to reinvent itself.

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Road to recovery? Jevanto Productions/Shutterstock

In a tricky economic climate, the British department store John Lewis has managed to deliver some good news. The retail partnership – owned by its 80,000 employees – posted pre-tax profits of £56 million after a £234 million loss the year before.

The positive announcement was somewhat tarnished by the fact that those employees (known as partners) would not receive a bonus for the second year in a row. There were also hints of job cuts.

But what more could this giant of UK retail, which also owns Waitrose supermarkets, do to endure its survival? Does its increasing reliance on grocery sales mean its own brand has become less valuable?

For over 160 years on the high street, John Lewis has worked hard on that brand. Its slogan (scrapped in 2022) about being “never knowingly undersold” was well known, it remains a trusted supplier of an extensive range of household hoods, rates highly for customer service, and runs Christmas TV adverts which have became a media event in themselves.

In doing all of those things, John Lewis seemed to be in a much better place than its rivals. BHS (founded in 1928) and Debenhams (1778) have disappeared from the high street. House of Fraser (1849) was taken over and has a much-reduced physical presence.

John Lewis’s nearest rival, Marks & Spencer (1884), is now doing well, but only after it underwent a fairly brutal restructuring which involved cutting thousands of jobs during the pandemic, closing 67 stores, and slashing its operations in France.

So John Lewis’s “brand heritage” – its history, tradition and pedigree – has worked pretty well for a pretty long time. But its recent return to profit was the combined effort of reinvesting and streamlining, according to some reports.

Also known as “trimming the fat” in the business world, the retailer’s streamlining endeavours consisted of cutting more than 1,500 jobs, and closing underperforming stores, such as the branch in Sheffield, which had served residents for nearly 80 years and was much mourned, including by my own mother-in-law.

It has also been reported that more job cuts are imminent, with up to 11,000 jobs to go in the next five years.

And perhaps these measures highlight some of the harsh realities of running a department store in the always-open and effortless world of online shopping. Maybe employees (even those considered partners, as under John Lewis’s employee-ownership model) have become expendable.

Maybe physical stores, where consumers go to explore and seek advice, have become expendable. Maybe all traditions are expendable when they are not commercially viable.

People first

Yet the world of retail is filled with examples of heritage brands reinventing themselves to stay relevant, buoyant and competitive.

John Lewis will need to do the same if it wants to retain its legacy on the British high street. And it could do worse than taking a leaf out of Waitrose’s playbook.

For the company’s return to profit was largely due to the buoyant sales generated by Waitrose supermarkets, which increased by 4%. The department store business meanwhile, suffered a 2% fall.

Part of Waitrose’s success comes from providing a sense of indulgence and enjoyment – including healthy food – through carefully curated and often locally sourced products. It works closely with local farmers, supports regional suppliers (an approach that has also contributed to M&S’s success), and reinvests in stores and product offers.

Essentially, as part of UK’s grocery sector, Waitrose extended its partnership ethos to include people and groups beyond the shop walls – to build a “local retail ecosystem” that promotes and leverages a community spirit around their stores.

M&S shop front.
Appealing to appetites. Simon Vayro/Shutterstock

John Lewis department stores could try and do something similar. They could focus more on products that help customers live healthier and more active lives, and which are relevant to their interests. They could sell products created by local small businesses, and make a determined approach to be a supportive presence in the regions they serve.

Research suggests that heritage brands benefit from having a moral standing – when they show they care about the people they make money from, the local communities they operate in, and the people they employ.

So perhaps John Lewis should make moral values a part of its evolving heritage. It needs to show it cares not just for the people who work for the company directly, but also the people on whom it relies for success – the customers – and people it can build new relationships with. All of them could prove critical to its future success.

Kokho Jason Sit is affiliated with the Chartered Institute of Marketing.

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ARPA-H appoints Etta Pisano to lead its Advancing Clinical Trials Readiness Initiative

The Advanced Research Projects Agency for Health (ARPA-H) has appointed Etta D. Pisano, MD, FACR, senior portfolio lead, to build the agency’s clinical…

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The Advanced Research Projects Agency for Health (ARPA-H) has appointed Etta D. Pisano, MD, FACR, senior portfolio lead, to build the agency’s clinical trial portfolio and lead the ARPA-H Advancing Clinical Trials Readiness Initiative under ARPA-H Resilient Systems Mission Office Director Jennifer Roberts.

Credit: N/A

The Advanced Research Projects Agency for Health (ARPA-H) has appointed Etta D. Pisano, MD, FACR, senior portfolio lead, to build the agency’s clinical trial portfolio and lead the ARPA-H Advancing Clinical Trials Readiness Initiative under ARPA-H Resilient Systems Mission Office Director Jennifer Roberts.

The first radiologist to be appointed to such a role, Dr. Pisano is an internationally recognized expert in women’s health, breast cancer research, and the use of artificial intelligence in medical imaging applications.

“I am honored to be working for ARPA-H to identify and promote research that can improve healthcare quality, efficacy and delivery, and to improve patient care and access to clinical trials for all Americans, including women, rural residents, and the underserved,” said Dr. Pisano.

Dr. Pisano will continue to serve as study chair of the large-scale Tomosynthesis Mammographic Imaging Screening Trial (TMIST) for the ECOG-ACRIN Cancer Research Group (ECOG-ACRIN). TMIST is led by ECOG-ACRIN with funding from the National Cancer Institute, part of the National Institutes of Health. She will also continue to serve as the American College of Radiology® (ACR®) Chief Research Officer (CRO). Dr. Pisano previously served as the principal investigator of the landmark Digital Mammographic Imaging Screening Trial (DMIST).

The TMIST breast cancer screening study is among the fastest growing National Cancer Institute (NCI) trials of the COVID-19 era. Under Dr. Pisano’s leadership, TMIST is assembling one of the most diverse cancer screening trial populations ever. Approximately 21% of TMIST U.S. participants are Black—more than double the average rate for Black participation in NCI-funded clinical trials (9%).

With ARPA-H, Dr. Pisano will work to build underserved and minority participation in clinical trials—including identifying and onboarding rural facilities and those outside of large academic medical centers—such as emerging retail healthcare sites. 

These duties are also very consistent with the missions of ECOG-ACRIN and ACR, which include promoting the exploration and identification of next-generation technologies that can benefit patients and providers.

“This is a great opportunity for Etta, and I’m excited about the impact she will make on our approach to clinical trials,” said Mitchell D. Schnall, MD, PhD, group co-chair of ECOG-ACRIN.

About ECOG-ACRIN

The ECOG-ACRIN Cancer Research Group (ECOG-ACRIN) is an expansive membership-based scientific organization that designs and conducts cancer research involving adults who have or are at risk of developing cancer. The Group comprises nearly 1400 member institutions and 21,000 research professionals in the United States and around the world. ECOG-ACRIN is known for advancing precision medicine and biomarker research through its leadership of major national clinical trials integrating cutting-edge genomic approaches. Member researchers and advocates collaborate across more than 40 scientific committees to design studies spanning the cancer care spectrum, from early detection to management of advanced disease. ECOG-ACRIN is funded primarily by the National Cancer Institute, part of the National Institutes of Health. Visit ecog-acrin.org, and follow us on X @eaonc, Facebook, LinkedIn, and Instagram.

Media Contact: Diane Dragaud, Director of Communications, communications@ecog-acrin.org.


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