Monday, October 21, 2024

Is Uranium Royalty Corp. (Nasdaq: UROY) The Missing Piece In The Global Energy Puzzle?

The world is on the verge of an energy transformation, and nuclear power is at the center of this shift.

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Is Uranium Royalty Corp. (Nasdaq: UROY) The Missing Piece In The Global Energy Puzzle?

October 21st

Greetings Readers,

The world is on the verge of an energy transformation, and nuclear power is at the center of this shift.

As we strive to reduce our carbon footprint while ensuring a reliable power supply, nuclear energy has emerged as the clear solution to the challenges renewable sources still face.

Wind and solar, while critical, are limited by their intermittent nature—wind doesn't always blow, and the sun doesn't always shine.

Nuclear energy, however, produces power over 90% of the time, dwarfing solar's 25% and wind's 35% capacity.

Plus, the land use required for renewables is massive compared to nuclear's efficiency.

Global leaders like Bill Gates and Elon Musk are doubling down on nuclear power, recognizing its pivotal role in solving our climate and energy security issues.

Add to that recent government investments in nuclear fuel development, and it's clear—nuclear is the future.

But here's the key: uranium fuels that future.

With uranium prices soaring over 100% since 2021, one company stands uniquely positioned to benefit from this massive shift in energy demand.

Consider this under-the-radar Nasdaq idea for your watch-list:

Uranium Royalty Corp. (Nasdaq: UROY)

Uranium Royalty Corp. (URC) is the world's only uranium-focused royalty and streaming company and the only pure-play uranium listed company on the Nasdaq.

URC provides uranium commodity price exposure through strategic acquisitions in uranium interests, including royalties, streams, debt and equity in uranium companies, as well as through trading of physical uranium.

Uranium Royalty Corp. (UROY) - 5 Company Highlights To Think About

First Mover Advantage - URC is the first company to apply the successful royalty and streaming business model exclusively to the uranium sector C$304Mn.

Liquid Assets - Strong balance sheet, which positions it to capitalize on accretive uranium royalty and streaming acquisition opp's.

Physical Uranium Ownership - Through opportunistic market purchases, the supply stream with CGN Global, and its strategic arrangement with London-listed Yellow Cake plc, URC holds interests in physical uranium, acquired at cyclical lows.

Large & Diversified Royalty Portfolio - Portfolio includes interests on 19 development, advanced, permitted and producing uranium projects in multiple jurisdictions, including royalties on the world class McArthur River and Cigar Lake mines.

Expertise - Management and board possess decades of uranium industry experience, including senior executive and advisory roles to prominent companies and governments in the sector.

Uranium Royalty Corp. is well positioned to take advantage of current market conditions as a provider of alternative capital to the uranium sector.

URANIUM DEMAND Need for New Production – Beyond Existing Mines

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  • Inventory Overhang Largely Drawn Down- More Rapidly than Expected
  • Secondary Supply from Russia to Western Nations is being Reduced/Eliminated
  • Enrichment Underfeeding is Changing to Overfeeding- Increasing Uranium Demand
  • Within the Permitting and Development Lead Times to Bring on New Mines

TRIPLING OF NUCLEAR ENERGY BY 2050 – A Historic Pledge Announced at COP 28 for Global Expansion Led by the U.S.

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URC STRATEGY: OPP. FOR EXISTING AND NEW ROYALTIES, STREAMS, AND PHYSICAL URANIUM

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URC has a flexible strategy and desire to be a partner in growth.

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GLOBAL DIVERSIFIED ASSET PORTFOLIO

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Note: Physical storage of yellowcake material is provided at Cameco's Blind River facility in Ontario, Canada.

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STRATEGIC ASSETS – PHYSICAL URANIUM IN-VEST-MENT

Cumulative as of September 12, 2024:

  • Purchased 3.5M lbs. at weighted average cost of US$57.58/lb. U3O8.
  • Sold 0.65M lbs. at average sales price of US$63.64/lb.
  • Total physical uranium concentrate inventory on hand of 2.7 million pounds U3O8 at a weighted average cost of US$60.12/lb. U3O8.
  • US$216Mn in market value at US$80.00/lb. (an increase of 33% since the acquisition dates).
  • Commitment to purchase 0.16M lbs. from market seller in December 2024 and 0.1M lbs from CGN Global Uranium Ltd. in April 2025. Weighted average cost for the purchase of such 0.26M lbs is US$71.44/lb.

The Company has received delivery of 400,000 pounds U3O8 under its purchase agreement with CGN Global Uranium Ltd. This agreement provides URC with exposure to an aggregate 500,000 pounds U3O8 from 2023 through 2025 at a weighted average price of US$47.71 per pound. The delivery of the remaining 100,000 pounds is expected to be completed in April 2025.

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Uranium Royalty Corp. (Nasdaq: UROY): Thriving Now, Leading Tomorrow

Uranium Royalty Corp. has a diverse portfolio of royalties across 19 projects in the US, Canada, Namibia, and Spain, all known uranium-rich areas.

Here are a few notable ones:

Churchrock, New Mexico, USA - This advanced stage project in the Grants Mineral Belt contains 50.8 million pounds of uranium, making it one of the largest undeveloped ISR uranium sites in the US. Uranium Royalty Corp. holds a 4% Net Smelter Return and a 6% Gross Overriding Royalty here.

Cigar Lake, Saskatchewan, Canada - One of the world's highest-grade uranium deposits, Cigar Lake has 208.6 million pounds of proven reserves, with Uranium Royalty Corp. holding a sliding scale 10%-20% Net Pro-fit Interest. This project is currently in production, capable of producing 18 million pounds of U3O8 annually.

McArthur River, Saskatchewan, Canada - McArthur River is another top-tier uranium project with 380.5 million pounds of reserves. Uranium Royalty Corp. holds a 1% Gross Overriding Royalty on a portion of the production, with the mine capable of producing 18 million pounds per year.

Dewey-Burdock, South Dakota, USA - This advanced-stage project has an estimated pre-tax earnings of $372.7Mn. Uranium Royalty Corp. holds both a 2%-4% Sliding Scale Royalty and a 30% Net Proceeds Royalty on the project.

In addition to these royalties, Uranium Royalty Corp. is looking to expand into streams, long-term purchase agreements, and strategic in-vest-ments in uranium exploration, development, and production.

Their broad vision sets them up for a promising future in the uranium market.

Grab UROY report sources here: Company Presentation.

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Coverage is officially initiated on Uranium Royalty Corp. (Nasdaq: UROY).

When updates are available on this Nasdaq profile, I'll get them out to you quickly. Talk again soon.

Sincerely,

Kai Parker

StockWireNews


(Always Remember The St-ock Prices Could Be Significantly Lower Now From The Dates I Provided.)

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