Wednesday, Apr 6th 2022

Titan Offshore holding URNM has a new owner

Commentary

Sprott is buying North Shore Global Uranium Mining (URNM)

Sprott Asset Management has finalized its deal to acquire the rights to the North Shore Global Uranium Mining (URNM). Through our Offshore strategy, Titan clients own about $10 million worth of this position, or roughly 0.35% of all outstanding shares.

We supported this transaction, and cast our vote in favor of the deal, as we believe Sprott’s investment leadership in the metals and mining industry makes them an ideal steward of this vehicle going forward.

If you’ve been with us since last year, you know that we’re quite bullish on uranium, the mission-critical feedstock for nuclear power generation. We’ve expressed this thesis in both the Opportunities and Offshore portfolios by investing in uranium mining companies, and although these investments have been fruitful to date, we believe we’re still in the early innings of this investment.

A key pillar of our uranium thesis has been the launch of the Sprott Physical Uranium Trust (SPUT), a now $3.2B AUM investment vehicle that purchases/stores physical uranium. Since launching in mid-August, Sprott has purchased more than 53M lbs of physical uranium out of the spot market, resulting in spot prices increasing more than +100% during this period while also meaningfully improving price discovery in the uranium markets.

These large-scale purchases further amplify the existing large supply/demand imbalance and may accelerate the time in which utilities come to the market and re-sign long-term contracts.

In our view, Sprott’s ownership of URNM, the only U.S.-listed pure-play uranium investment vehicle, should increase investor exposure to the vehicle, potentially leading to new flows and interest into the uranium investment theme. Sprott plans to offer URNM alongside SPUT to its 200,000+ client base, and we think these products are natural complements for investors seeking exposure to commodity and green energy themes. North Shore Global Uranium Mining (URNM) will continue to trade under the same ticker, so Titan clients won’t notice any changes in the Offshore holdings.

We’re pleased to see this deal go through and believe this should only increase interest in the theme.

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