Welcome back to the channel everyone, the commodity market has been nothing less than
explosive lately, which has had its benefits and drawbacks. And one sector which we have covered
multiple times on the channel is Uranium which is doing really well right now. So in this video,
I share with you one top uranium royalty penny stock, which is a very good play for the medium
to long term. So you certainly want to keep this on your radar and make sure you watch till the end
so you hear what their CEO had to say about their path to income which would
create tangible value for shareholders. So you certainly don’t want to miss that.
Some people aren’t aware that nuclear energy is a zero-emission,
clean energy source with a small land footprint. Nuclear fuel is extremely compact;
so much that all of the nuclear fuel produced by the U.S. over the last 60 years could fit on a
football field at a depth of less than 10 yards. And this allows nuclear power plants to generate
large amounts of electricity efficiently and underscores why uranium will play a key role in
helping countries achieve their de-carbonization goals in the global fight against climate change.
Certainly the way to go for the future of clean energy.
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So let’s talk about Uranium Royalty Corp (Nasdaq:
UROY) which is now trading at $4.11 with a market cap of $388m. UROY has mostly mirrored the market
volatility over Q1 but it is showing signs of a recovery and bouncing from its lows of $2.95.
And looking at where it has come from Q4, 21 and highs of over $6.50, it gives an indication of
how far UROY can go given the current outlook for uranium commodity and its hybrid model.
Uranium Royalty Corp. (URC) is the world's only uranium-focused royalty and streaming company
and the only pure-play uranium listed company on the NASDAQ.
URC provides investors with uranium commodity price exposure through strategic acquisitions in
uranium interests, including royalties, streams, debt and equity in uranium companies, as well as
through holdings of physical uranium. The Company is well positioned as a capital provider to an
industry needing massive investments in global productive capacity to meet the growing need for
uranium as fuel for carbon-free nuclear energy and they have deep industry knowledge and expertise
to identify and evaluate investment opportunities in the uranium industry.
So what makes UROY special is that there is only ONE Uranium royalty company in the world! We know
of several gold royalty companies or silver or base metals, is the ONLY URANIUM royalty COMPANY!
The Company believes that such focus gives it an advantage in seeking additional interests
by providing it with increased visibility and recognition amongst potential counterparties.
They also have the advantage of focusing solely on growth, as they is not responsible for day-to-day
project operations or development decisions respecting the projects underlying its interests.
The Company does not operate mines, develop projects or conduct exploration as their
business model is focused on managing and growing their portfolio of uranium interests. They believe
that the advantages of this business model include the following: Lower Volatility
Through Diversification, Exposure to Uranium Price Optionality without Project Costs and Overhead,
Focus and Scalability.
Their long-term strategy is to gain exposure to uranium prices
by owning and managing a portfolio of geographically diversified uranium interests,
and holding physical uranium from time to time. The next wave of acquisitions are anticipated
to focus on new royalties, streams, additional physical uranium, and other uranium interests
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.
Their Chairman is Amir Adnani whom we have spoken about multiple times previously as he is also the
CEO of UEC. Their CEO is Scott Melbye, with over 35 years of experience in the nuclear
energy industry and leadership positions in various uranium mining companies and industry
organizations including roles with Cameco, Uranium One & Uranium Participation Corp.
Scott has been responsible for uranium marketing and sales, as well as strategic growth objectives.
So let’s hear from Scott on what they’ve been up to and what their path to income looks like.
Awesome stuff, great portfolio of partners,
low costs and improved timelines which are all impressive .
Uranium Royalty Acquired Additional Royalty on the Lance Uranium Project in Wyoming, USA.
They announced that they had acquired an additional 1% gross revenue royalty interest
on the Lance In-Situ Recovery (“ISR”) Uranium Mine in Wyoming, USA operated by Strata Energy Inc.
(“Strata”), The deal had the following Highlights Near-term production potential, Additional
exposure to U.S. uranium production, The royalty is a 1% gross revenue royalty interest.
Scott Melbye, Chief Executive Officer of URC stated:
“URC couldn’t be more pleased with the addition of this comprehensive,
near-term cash-flowing royalty on the Lance Project. They have great confidence in Strata’s
management and technical teams to be able to bring this competitive asset into full production
as one of the early movers, taking advantage of improving uranium markets.
Uranium Royalty announced the Expansion of their Physical Uranium Holdings.
They announced that they had made additional uranium concentrate purchase commitments
totaling 200,000 lbs U3O8 at an average cost of US$58.40 per pound.
Deliveries will be made in April/May 2022 to URC’s storage account with Cameco Corporation
in Ontario, Canada. The purchase will be funded with cash on hand and available credit.
With these additions, URC will hold physical uranium inventories of 1,548,068 pounds,
acquired at a weighted average price of US$42.20 per pound. The net realizable
value of URC's existing uranium inventories has increased by approximately US$25 million
since acquisition based on the most recent daily spot price published being US$58.40 per pound.
So in summary URC offers investors a First mover pure-play uranium royalty exposure, Royalty
portfolio covering array of development projects in key jurisdictions with the right partners,
Team with extensive uranium industry experience, knowledge and access, Nuclear energy gaining
broader acceptance in a carbon-constrained world, Market Fundamentals which continue
to improve with a growing deficit between primary production and reactor requirements
So some very very interesting and mindblowing prospects ahead for these penny stocks
but only consider getting in if the price is right for you and if you fully understand the risks.
This video is not financial advice, a buy or a sell recommendation, but is meant to bring some
new and exciting penny stocks to your attention for you to do your own research.. As always I
would love to hear from you, so please let me know your thoughts on these top penny stocks
in the comments section below and what other penny stocks are catching your eyes lately.
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when I upload new videos. If you would like to see more videos like this, please check out this
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Thank you so much for being here and I look forward to have you in my next video. Thank you