Niger is among the biggest producers of uranium
Exchange-traded funds that provide investors exposure to uranium are falling Tuesday in the wake of a military junta overthrowing the president of Niger, a significant supplier of the metal, paring some of their sharp gains this week.
The Global X Uranium ETF (URA) was down 0.8% Tuesday afternoon, while the Sprott Uranium Miners ETF (URNM) fell 0.2%, according to FactSet data, at last check. But both funds have advanced sharply so far this week, with the Global X Uranium ETF up 2.5% and the Sprott Uranium Miners ETF climbing 3.6%.
Niger, a country in West Africa, has ranked among the biggest uranium producers globally, data on the World Nuclear Association’s website show. Uranium powers commercial nuclear reactors that generate electricity and is also used to produce isotopes for medical, industrial and defense purposes, according to the U.S. Energy Department.
Members of Niger’s military staged a coup in the country in late July, with president Mohamed Bazoum being replaced by General Abdourahmane Tchiani, the Associated Press reported. The Washington Post reported on Monday “a group of West African nations has threatened military intervention in Niger if ousted President Mohamed Bazoum is not returned to power by Aug. 6.”
The top holding of the Global X Uranium ETF, which tracks an index of companies involved in uranium mining and the production of nuclear components, was Canada’s Cameco Corp. at the end of July, according to data on Global X’s website. The fund’s next largest holdings included Sprott Physical Uranium Trust , Canada’s NexGen Energy, National Atomic Company Kazatomprom in Kazakhstan and Australia’s Paladin Energy.
The Sprott Uranium Miners ETF top five holdings at the end of July were Cameco Corp., National Atomic Company Kazatomprom, Sprott Physical Uranium Trust, NexGen Energy, and Denison Mines Corp., according to data on the firm’s website.
Meanwhile, shares of the Sprott Physical Uranium Trust , which invests in physical uranium, was up 2.7% on Tuesday afternoon for a year-to-date gain of around 11%, according to FactSet data, at last check. The Global X Uranium ETF and Sprott Uranium Miners ETF are also up this year, with the Global X fund gaining more than 12% and the Sprott ETF climbing more than 9%.