1/ Some brief thoughts on $SPUT / $U-U and why it trading lower on today's open is a good thing for #uranium -- Yesterday's daily update showed that #Sprott did not purchase material or issue units.
2/ This confounded some investors, given the close to 30% premium of the vehicle...

There is a simple explanation: While updating an ATM, it is common to have limitations on market activities.
3/ While the new base shelf prospectus hit Friday, the company did not file an updated sales agreement and confirm the ATM until post close yesterday (see attached).
4/ During this time (Friday - Monday) the company was likely in a blackout and unable to issue units / purchase material. This also explains the significant premium which occurred over those days - the whole purpose of the ATM is to prohibit such a premium by issuing units.
5/ On to today - we opened sharply lower on #SPUT which is likely the ATM kicking back in, selling units at a significant premium in order to purchase more material (which is good for the spot market). They should do this until they approach NAV.
6/ Investors may ask - if Sprott was out of the market, why did spot trade up?
7/ The answer - maybe utilities buying but they are not typically bidders "out loud" so my guess is that traders understand this blackout dynamic, know Sprott is going to be buying a lot post updated ATM and were front running the vehicle. Not surprising.
8/ So long story short, while $SPUT price will remain a good indicator of momentum and investor interest, we should have all been expecting a sharp open lower as the ATM kicked back in and the vehicle got back to it's stated mission - issuing shares to buy #uranium

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More from @JekyllCapital

22 Jan
1/ A thread on Nexgen’s Arrow & the #uranium cycle ($NXE)
2/ Given the scale and cost structure of Arrow, it makes sense that investors are intensely focused on its delivery timeline. This thread will discuss possible timelines, current market expectations (i.e., what’s “priced in”) & how different Arrow scenarios will impact the mkt.
3/ As you can see from the litany of responses to Michael’s tweet, there is great skepticism in the market regarding Arrow’s timeline. This is largely due to a bearish narrative conveyed by competing CEO’s whose assets only hold value if Arrow is substantially delayed.
Read 28 tweets
8 Jan
My tweet regarding the $EU last night clearly rubbed some people the wrong way. While not entirely unexpected, I thought I would explain our motivations for tweeting on the topic and clarify a few points. A long thread:

As I noted in several responses to my initial Encore tweet, the goal was not to attack management. While we do not have much of a relationship with Bill, we like and respect Paul and have known him for years.
The purpose of the tweet was to call out some of the overly promotional twitter accounts which were clearly pumping an illiquid, low float stock into retail hands at valuations that (to us) were absurd relative to other names in the sector.
Read 23 tweets
23 Dec 20
There seems to be some confusion on the $YCA #uranium option - how to exercise, order of events, some idea of a credit line?!?

Here is a short thread on how it would work:

1) Yellowcake management submits an exercise notice to $KAP signaling an intent to raise capital to buy U
2) KAP has some time period to respond with an indicative price which is then verified by $YCA management as "market" when compared to third party price reporters

3) Once a price and indicated size is agreed upon, THEN management has a couple weeks to raise capital in the market
What is key here is that by the time the market is aware of a transaction, the indicated size and pricing has been set (if you think about it, a requirement to raise before pricing is set would never make sense - the market would move on your raise).
Read 8 tweets

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