Mike Fagan,
Editor
Sept. 19, 2024
Uranium Royalty Corp. (TSX: URC)(NASDAQ: UROY) — currently trading around C$3 per share — is the only pure-play uranium royalty company in the space and 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 diversified exposure to rising uranium prices — via royalties, streams, and physical inventory — without having to own, develop, or operate any uranium mining projects.
Through opportunistic market purchases, a supply stream with CGN Global, and a strategic arrangement with London-listed Yellow Cake plc, URC holds interests in physical uranium acquired at or near cyclical lows.
At present, the company boasts a physical drummed uranium inventory of ~2.7 million pounds at an average cost basis of less than US$60 per pound U3O8. Uranium spot prices are currently right around US$80 per pound.
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That strategy has enabled the company to build, call it, a warchest of over C$300M in cash and liquid assets, to which it can deploy some of that capital to add to its existing portfolio of royalties and streams. URC’s current market cap is roughly C$360M.
Speaking of the portfolio, URC currently holds 21 royalty interests in 19 development, advanced permitted, and producing uranium projects in multiple jurisdictions around the globe, including royalties on Cameco’s world-class McArthur River and Cigar Lake mines in Canada’s Athabasca Basin.
A couple of other highlights include a royalty on the Lance Mine in Wyoming, which is set to commence uranium production by year-end, and a fixed-price royalty on the Langer Heinrich Mine in Namibia, which is in production now.
To-date, and in addition to physical uranium purchases, URC has been focused primarily on acquiring existing royalties. URC’s next wave of acquisitions are anticipated to focus on new royalties and streams in jurisdictions where new mines are coming online such as in the United States, Canada, Australia, and Africa.
Uranium Royalty Corp. is led by Scott Melbye, CEO, who boasts 40 years of experience with industry stalwarts such as Cameco, Uranium One, and Uranium Participation Corp. Scott is also a former strategic advisor to Kazatomprom, the national atomic company of Kazakhstan and the world’s largest uranium producer.
You’ll be hearing from Scott in our exclusive interview coming right up wherein he discusses what he sees as some of the most favorable supply-demand fundamentals he’s ever seen in the global uranium sector.
He also succinctly lays out URC’s model as a capital provider for new uranium mine development and, as well, what he sees as robust growth prospects ahead as many of the company’s royalties and streams move into the all-important cash-producing and cash-flowing stage.
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So without further ado, here’s our own Gerardo Del Real of Junior Resource Monthly talking all-things uranium with Uranium Royalty Corp. CEO Scott Melbye. Please enjoy!
For additional information on Vancouver-based Uranium Royalty Corp., be sure to contact the company’s IR department toll-free at 855-396-8222.
Sign up to receive updates directly from the company at the Uranium Royalty corporate website and view the most recent Corporate Presentation here.
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest
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