Uranium Royalty Corp (TSXV: URC) has begun locking up additional sources of physical uranium in anticipation of climbing U3O8 prices. The firm this morning announced an arrangement with CGN Global Uranium for the purchase of 500,000 pounds of U3O8.
The purchases are set to occur over a three year period, beginning in October 2023. The first delivery is slated to consist of a total of 300,000 pounds of uranium, while subsequent deliveries in June 2024 and April 2025 will consist of 100,000 pounds of uranium each.
The uranium is all to be purchased at a price of $47.71 per pound, which CEO Scott Melbye says is “attractive pricing.” This view on the pricing of the uranium is based on factors that are said to include “[forecasts for] large 45-50 million pound annual supply deficits between production and reactor requirements at a time utility procurement volumes are expected to return to higher levels.”
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The uranium has been purchased from CGN Global, which is a subsidiary of China General Nuclear Power Group, whom has uranium production across three countries and is one of the largest nuclear power operators globally. The transaction is said to require no up-front cash outlay, with payment to be made at the time of delivery.
Uranium Royalty Corp last traded at $4.99 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
