Uranium Royalty (URC) Q4 2024 earnings summary

Executive summary

• Uranium Royalty Corp. (URC) is a pure-play uranium royalty company focused on exposure to uranium prices through royalties, streams, equity, debt investments, and physical uranium holdings, with a diversified portfolio across Canada, the US, Namibia, and Spain.

• The company’s business model emphasizes diversification, low operating costs, and scalability, with a focus on acquiring royalties and streams in uranium projects at various stages from exploration to production.

• URC’s material producing assets are royalties on the McArthur River, Cigar Lake, and Langer Heinrich mines, with additional interests in 18 uranium projects and 2.71 million pounds of physical uranium held as of July 2024.

• Recent developments include the acquisition of a royalty on the Salamanca Project in Spain and continued expansion of physical uranium holdings through fixed-price purchase agreements.

• The company completed several equity financings and maintains an active at-the-market (ATM) equity program to support growth and acquisitions.

Financial highlights

• During the year ended April 30, 2024, URC raised $30.8 million through a public offering and $3.5 million via the ATM program, with additional gross proceeds from prior years’ offerings and ATM sales.

• URC sold 450,000 pounds of physical uranium for $42.7 million, generating a gross profit of $14.8 million in the year ended April 30, 2024.

• As of April 30, 2024, the company held 2,511,271 pounds U3O8 at a weighted average cost of US$56.13/lb; as of July 2024, holdings increased to 2,711,271 pounds at US$57.54/lb.

• The company’s authorized capital consists of an unlimited number of common and preferred shares, with 121,397,121 common shares outstanding as of July 2024.

Outlook and guidance

• URC’s strategy is to continue expanding its portfolio of uranium royalties, streams, and physical uranium, leveraging industry expertise to identify new opportunities.

• The company expects continued revenue from the McArthur River royalty, with Cigar Lake and Langer Heinrich providing medium- to long-term upside as cost accounts are recovered and production ramps up.

• Ongoing uranium purchases and fixed-price contracts are expected to enhance exposure to uranium price appreciation.

• The company plans to maintain a disciplined fiscal approach and may pursue further equity or debt financing to fund acquisitions.