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
inherent cyclicality of valuations based on uranium prices,
including the impact of such cyclicality on the availability of
capital within the uranium sector and the current historically low
uranium pricing environment. URC has deep industry knowledge and
expertise to identify and evaluate investment opportunities in the
uranium industry. The Company's management and the Board include
individuals with decades of combined experience in the uranium and
nuclear energy sectors, including specific expertise in mine
finance, project identification and evaluation, mine development
and uranium sales and trading.
Forward Looking Information
Certain statements in this news release may constitute
"forward-looking information", including those regarding the
Company's expectations regarding uranium markets. Forward-looking
information includes statements that address or discuss activities,
events or developments that the Company expects or anticipates may
occur in the future. When used in this news release, words such as
"estimates", "expects", "plans", "anticipates", "will", "believes",
"intends" "should", "could", "may" and other similar terminology
are intended to identify such forward-looking information.
Statements constituting forward-looking information reflect the
current expectations and beliefs of the Company's management. These
statements involve significant uncertainties, known and unknown
risks, uncertainties and other factors and, therefore, actual
results, performance or achievements of the Company and its
industry may be materially different from those implied by such
forward-looking statements. They should not be read as a guarantee
of future performance or results, and will not necessarily be an
accurate indication of whether or not such results will be
achieved. A number of factors could cause actual results to differ
materially from such forward-looking information, including,
without limitation, risks inherent to royalty companies, uranium
price volatility, risks related to the operators of the projects
underlying the Company's existing and proposed interests and those
other risks described in filings with Canadian securities
regulators and the U.S. Securities and Exchange Commission. These
risks, as well as others, could cause actual results and events to
vary significantly. Accordingly, readers should exercise caution in
relying upon forward-looking information and the Company undertakes
no obligation to publicly revise them to reflect subsequent events
or circumstances, except as required by law.
Neither the TSX Venture Exchange (the "TSX-V") nor its
Regulation Services Provider (as that term is defined in policies
of the TSX-V) accepts responsibility for the adequacy or accuracy
of this release.
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SOURCE Uranium Royalty Corp.