Business
Uranium Royalty Corp Expands Physical Uranium Holdings to 648,068 Pounds of U3O8 at a Weighted Average Cost of US$33.10 per pound U3O8
VANCOUVER, BC, Sept. 15, 2021 /CNW/ - Uranium Royalty Corp. (NASDAQ: UROY) (TSXV: URC) ("URC" or the "Company") announces that it is entering into contracts for
About this update from Uranium Royalty Corp
[{"type":"text","content":" VANCOUVER, BC, Sept. 15, 2021 /CNW/ - Uranium Royalty Corp. (NASDAQ: UROY) (TSXV: URC) (\"URC\" or the \"Company\") announces that it is entering into contracts for three additional spot purchases totaling 300,000 pounds of U3O8 at an average cost of US$38.17 per pound U3O8. Deliveries are scheduled for September/October 2021 and will be accomplished through book transfers to URC's storage account at Cameco Corporation's Fuel Services facilities in Ontario, Canada. This acquisition is fully funded with cash on hand. As of September 14, 2021, URC has C$80 million in cash, marketable securities and physical uranium. Following completion of these deliveries, URC will hold a physical inventory of 648,068 pounds U3O8 at a weighted average cost of US$33.10 per pound. The latest Trade Tech daily spot price is at US$45.00 per pound as of September 14, 2021, leading to an increase in the net realizable value of URC's physical uranium holdings by US$7.7 million. It is within URC's mandate to make periodic purchases of physical uranium to provide attractive commodity price exposure to shareholders, especially in these early stages of a bull market in uranium. The global mega-trend towards de-carbonization is providing a major catalyst for carbon-free, safe, and reliable nuclear energy. The supply and demand fundamentals for uranium continue to improve, with demand for uranium now exceeding pre-Fukushima levels and global mine production (128 million pounds) expected to lag global consumption (191 million pounds) by 63 million pounds in 2021 (UxC data – Q3 2021 report). This is the 5th year of the production/consumption gap which has had a positive impact on drawing down excess market inventories. The purchasing activities of producers and financial entities, like the Sprott Physical Uranium Trust have accelerated this rebalancing as of late, resulting in a 49% rise in the spot price in the past five weeks. About Uranium Royalty Corp. Uranium Royalty Corp. (URC) is the world's only pure-play uranium royalty company and the only uranium focused business on the Nasdaq. URC is focused on gaining exposure to uranium prices by making strategic investments in uranium interests, including royalties, streams, debt and equity investments in uranium companies, as well as through holdings of physical uranium. The Company recognizes the in...