Uranium Royalty Corp makes strategic investments in uranium interests, which includes streams, royalties, debt and equity in Uranium companies. In addition, it also makes physical uranium transactions.
Uranium Royalty Corp claims to identify the inherent cyclicality of valuations, which are price-centric, and availability of capital availability in diverse pricing environments.
It considers itself as the ‘first pure play uranium royalty entity’.
The company claims to benefit from this business strategy by getting a direct exposure to uranium prices without incurring any operating costs and concentrated risks associated with the development and exploration of uranium properties.
Uranium Royalty holds an impressive portfolio of different royalties and strategic investments, including Yellow Cake.
The publicly listed company primarily identifies, evaluates, and acquire the royalties in uranium projects through which the company would receive payments from the operators of uranium exploration sites based on the sale and production of uranium products.
The company is also engaged in uranium streams, under which it would make upfront payments to the uranium operators in exchange for buying a fixed percentage of uranium production in the future.
Apart from royalties and streams, Uranium Royalty Corp is further engaged in off-take or other agreements under which it would make long-term purchase agreements or options to acquire uranium products.
Uranium Royalty also claims to generate revenue by making direct strategic investments in debt or equity of companies engaged in the exploration, development, or production of uranium properties. These profitable interests are either directly acquired from the mine or project operators or third-party holders.
Uranium Royalty is also known to have joint venture interests in existing uranium projects through which it gets an indirect exposure to uranium project as a non-operating partner.
The company’s portfolio of featured royalties as of 2021 include:
It consists of net smelter return of 1.9 per cent and is operated by Rio Tinto plc. The property is associated with conventional mining method and is currently at a development stage.
Church Rock provides uranium royalty with a royalty of 4 per cent and is operated by Laramide Resources Ltd.
The property is associated with in-situ recovery method of mining and is currently at a development stage, the firm claims.
Operated by Azarga Uranium Corp, it consists of 30 per cent uranium royalty.
The development stage project provides a GRR of two per cent to the firm. It is operated by Paladin Energy Ltd.