New Uranium Company Rated “Buy”

Mike Fagan

by Mike Fagan
April 30, 2021

 

Uranium Royalty Corp. (TSX-V: URC)(NASDAQ: UROY) — currently trading around C$4.00 per share and the first-and-only pure play uranium royalty company in the space — has commenced active trading on the NASDAQ under the symbol “UROY” and has begun taking delivery of physical uranium from London-based Yellow Cake PLC. 

Under its 10-year supply agreement with Yellow Cake, Uranium Royalty is positioned to acquire between US$2.5 million and US$10 million of U3O8 per year up to a maximum aggregate amount of US$31.25 million worth of U3O8.

URC has now taken delivery of 348,068 pounds of U3O8, which is being held in an account at the Fuel Services facilities of Cameco Corporation (NASDAQ: CCJ) in Ontario, Canada.

Uranium Royalty CEO, Scott Melbye — whom you’ll be hearing more from in just a moment — commented via press release:
 
"We are pleased to confirm the acquisition and delivery of uranium into our holding account. This purchase is in line with our goal of gaining exposure to uranium prices through sector-focused investments and we believe that it clearly demonstrates the value of our strategic Yellow Cake investment. The addition of this direct physical uranium interest further diversifies our unique uranium-focused portfolio and adds a valuable asset to our balance sheet. Together with our recently announced proposed acquisitions of royalty interests in the McArthur River and Cigar Lake mines, we believe we are uniquely positioned to benefit from improving uranium prices."

For speculators, Uranium Royalty is the first company to apply the successful royalty and streaming business model exclusively to the uranium sector.

The model has the distinct advantage of providing exposure to rising uranium prices — via royalties, streams, and physical inventory — without having to own, develop, or operate any uranium mining projects.

direct leverage

To-date, URC’s strategy has been primarily focused on acquiring existing royalties, including proposed acquisitions of royalty interests in Cameco’s McArthur River and Cigar Lake mines — two of the world’s largest and highest-grade uranium mines.

The next wave of pending acquisitions will focus on new royalties, streams of physical uranium, and other uranium interests.

This week, Paradigm Capital initiated coverage on URC shares, rating them a “Buy,” saying they “will realize significant share price appreciation” as several of its near-term royalties flip the production switch as uranium market fundamentals improve.

Our own Gerardo Del Real of Junior Resource Monthly sat down with CEO, Scott Melbye, for an in-depth discussion on all-things Uranium Royalty.

Be sure to also click here for our new report on Uranium Royalty Corp.

Yours in profits,
Mike Fagan
Mike Fagan
Editor, Resource Stock Digest
 
Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.