Mike Fagan,
Editor
March 30, 2022
Uranium Royalty Corp. (TSX-V: URC)(NASDAQ: UROY) — currently trading around C$5 per share and the first-and-only pure play uranium royalty company in the space — has now increased its physical uranium purchase commitments by 200,000 pounds, bringing its total to over 1.5 million lbs U3O8 at a weighted average price of US$42.20 per pound.
URC has also contracted future purchase commitments of an additional 500,000 lbs U3O8 through 2025 at a weighted average price of US$47.71 per pound.
Those accretive transactions are providing URC shareholders with increased leverage to physical uranium at a time when prices are anticipated to continue to rise due to a fundamental supply/demand imbalance. In fact, uranium is already closing in on decade highs near US$60 per pound in what’s shaping up to be a historic bull market for yellowcake.
In just two short years post-IPO, URC has quickly amassed a geographically diverse portfolio of uranium royalties, including royalties on Cameco’s McArthur River and Cigar Lake mines, Saskatchewan, Canada — the two largest high-grade uranium mines in the world.
With all the pertinent boxes checked — including a large, growing base of physical uranium holdings priced well below spot — Uranium Royalty Corp. is well-positioned for growth in a booming market that could be driven higher still as utilities begin the process of securing long-term U3O8 contracts.
Keep in mind also that a big chunk of the world's uranium supply comes from Russia, Kazakhstan, and Uzbekistan. That’s one of the key reasons for the current rise in the commodity pricing for yellowcake. It’s also creating a long-overdue focus shift to much friendlier sources such as Canada and right here in the USA.
The catalysts are numerous. We’ll continue to keep you posted as always. In the meantime, now is an excellent time to begin taking a closer look at Uranium Royalty Corporation.
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest
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