Uranium Royalty Corp: Speculative Play On A Beaten Down Sector

On March 30, Uranium Royalty Corp. (TSXV: URC) exercised its option to buy US$10 million of physical uranium (U3O8) under the terms of its investment in the 2018 IPO of Yellow Cake plc. Uranium Royalty purchased 348,068 pounds of uranium at a price of US$28.73 per pound, a 7% discount to the U3O8 spot price on March 29, 2021.

Uranium Royalty makes royalty or streaming investments in the uranium sector, thereby allowing an investor to gain exposure, including through the purchase of physical uranium, to a beaten down sector with potentially improving fundamentals without taking on explicit uranium mining risk. In this way, Uranium Royalty is applying the same model to a highly speculative sector that many successful royalty/streaming companies employ in gold mining and oil and gas businesses.

The company has interests in 15 uranium projects primarily in the U.S. and Canada, plus a 5.9% stake in Yellow Cake plc, […]

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