Uranium Participation Corporation follows the spot price of uranium
An easy way if you just want to track the uranium price
An investment in the Uranium Participation Corporation allows you to capitalise on the upward or downward movement of uranium’s spot price, rather than on the profits (or losses) of one or more uranium mining companies. Key points:
- incorporated on March 15, 2005, and listed on the Toronto stock exchange
- its strategy is to invest primarily in long-term holdings of uranium and not to actively speculate with regard to short-term changes in uranium prices
- it holds its uranium in two forms: uranium oxide and uranium hexafluoride, also known as yellowcake (hereinafter together “uranium”)
- its uranium is physically stored in duly licensed facilities located in Canada, France, the United Kingdom and/or the United States
- it buys and holds its uranium stock through Denison Mines Corp - who manages the company but does not have any ownership interest in it.
Why consider this?
The sole purpose of the Uranium Participation Corporation is to provide an investment alternative for investors interested in holding uranium - in effect it offers investors with an indirect interest in physical uranium.
Following the completion of the acquisition of Uranium Ltd on March 30th, 2010, Uranium Participation Corp. now owns around 9.6 million pounds of uranium equivalent.
The beauty of Uranium Participation Corp. is that it has none of the usual exploration and mining risks involved, as investors are basically investing in a share in 9.6 million pounds of uranium. Simply put, if the price of uranium increases (as we expect in the mid to long term), or, decreases, the share price of the Corporation will follow suit.
Free Information and Resources
Uranium Participation Corporation:
at Bloomberg
at Google Finance
at Morningstar
at Reuters
at Yahoo Finance
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