SRUUF - US reportedly seeking funds to purchase enriched uranium

Late Tuesday Bloomberg reported that the Biden administration is seeking $4.3b in funds to purchase enriched uranium and otherwise develop the US uranium industry. For context, the Sprott physical uranium trust (OTCPK:SRUUF), largely credited for buoying spot uranium prices, manages $2.9b in physical uranium assets. Though the US has capacity to mine uranium, it is largely dependent on Russia for uranium enrichment, suggesting Tuesday's announcement is a step towards banning Russian imports of the fuel. The proposal would also aim to spur development for more domestic enrichment, ensuring interruption of Russian supplies could not impact domestic electricity production. The plan, proposed by the administration, would require approval from congress. Cameco (CCJ) has laid out a bullish long-term case for uranium miners, as nuclear power generation capacity ramps up around the world; however, currently oversupply in the spot market has put pressure on uranium mining stocks (URA); a proposal from the

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US reportedly seeking funds to purchase enriched uranium