Aggressive buying of uranium by a new investment trust sent the price of the metal to its highest since 2014.
The Sprott Physical Uranium Trust has snapped up around 6mln pounds of physical uranium, worth around US$240mln, since its launch in July, the FT reported today.
Uranium prices are now over $40 per pound, up from $30 at the start of the year.
Reports that one of Japan’s prime ministerial candidates wants to restart the country’s nuclear stations, which was mothballed after the Fukushima disaster in 2011, have also boosted demand while China is steadily ramping up its building programme.
Chinese requirements are tipped to push demand for uranium up from 162mln pounds this year to 292mln pounds in 2040 according to the World Nuclear Association.
A lack of new mines, meanwhile, is seeing production fall.
Shares in London-listed uranium investor Yellow Cake PLC (AIM:YCA) eased slightly to 301p today but are up more than 40% over the past 12 months mirroring the rise in the metal.