Uranium Royalty, a leading uranium-focused royalty and streaming company, is continuing to enhance its physical uranium holdings. The company has recently secured additional fixed-price purchase commitments for a total of 1 million pounds of uranium oxide concentrate.
The deliveries of U3O8 will take place at Cameco’s Blind River facility in Ontario before the end of this year. These purchases come at a favorable weighted average purchase price of $70.44 per pound.
Deal with CGN Global Uranium
In addition to this, Uranium Royalty has also received its first delivery of 300,000 pounds of uranium as per its purchase agreement with CGN Global Uranium. The remaining 200,000 pounds under their 2021 agreement are scheduled to be delivered by June 2024 and April 2025.
Significance and Inventory Boost
These recent purchases will significantly bolster Uranium Royalty’s physical uranium inventory, bringing it to approximately 2.65 million pounds. The weighted average cost for this inventory is estimated at $54.08 per pound. At the TradeTech reference spot price on Thursday, this inventory would amount to a valuation of $195 million.