Sprott Asset Management LP announced on March 11, 2025, that the Sprott Physical Copper Trust has entered into an arrangement with a specialized trading house. This transaction involves shipping COMEX registered copper to the United States.
The purpose of this arrangement is to capitalize on the current price arbitrage between the COMEX and London Metals Exchange (LME), which is influenced by the possibility of U.S. tariffs on copper imports. This strategy allows the Trust to monetize price differentials.
Under the terms, the total amount of copper held by the Trust will remain constant, as the counterparty will replace the shipped copper. The Trust's portion of the profit will be paid in cash, demonstrating an active approach to generating value for unitholders.
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