Uranium Royalty Corp. Increases Balance Sheet Strength Going Into 2022

Uranium Royalty Corp. (TSX-V: URC)(NASDAQ: UROY) — currently trading around C$5.00 per share and the first-and-only pure play uranium royalty company in the space — has released its unaudited interim consolidated financial statements for the three and six months ended 31 October 2021.

Highlights include:

Cash, marketable securities, and physical uranium holdings totaling approximately C$104 million at 13 Dec 2021
Physical uranium inventory increase of 300,000 lbs to 1,348,068 lbs at a weighted average acquisition price of US$39.80 per pound
Supply stream agreement with CGN Global Uranium for 500,000 lbs U3O8 delivered in 2023 through 2025 at a weighted average price of US$47.71 per pound

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 — the two largest high-grade uranium mines on the planet.

With all the pertinent boxes checked — including a large, growing base of physical uranium holdings — Uranium Royalty Corp. is well-positioned for growth in what’s shaping up to be an historic uranium bull run as utilities begin entering the market to secure long-term U3O8 contracts.

For those who feel they may have missed out on the initial uranium run that started in May of this year, we’re now in the middle of a healthy bull market pullback where positions can be established close to where they were earlier in the year.

There are plenty of tailwinds and catalysts for higher uranium prices going into 2022. My colleague Gerardo Del Real had this to say, “I think we're going to see the uranium price overshoot to the $200 level before it does a 50% retracement to a more sustainable $100 level.”

We’re at $45 per pound right now, which is well below the price needed to incentivize new production to come online. With nuclear energy being at the crossroads of the electrification-of-everything and decarbonization — there’s a lot of runway ahead for uranium prices and, as well, for small-cap uranium equities like URC.