Royalty companies provide capital for mining operations and receive license fees or streams in return.
The uranium sector has become more attractive due to the sharp rise in the price of uranium. The Russia-Ukraine war and the growing importance of renewable energies with regard to climate change have led to a rethink. Added to this is the adoption of a draft law in the USA, which will lead to a ban on the import of Russian nuclear fuel. The number of uranium mines coming on stream is likely to increase.
There are currently supply problems with uranium. There is the only royalty company in the uranium sector, Uranium Royalty - https://www.commodity-tv.com/ondemand/companies/profil/uranium-royalty-corp/ -, which specializes in the successful licensing and streaming business model. The company owns interests in physical uranium. In total, it also has shares in almost 20 developed, advanced, approved and producing uranium projects. These include well-known projects such as McArthur River and Cigar Lake.
However, traditional uranium companies should also be happy about the high uranium price. Especially if, like US Critical Metals - https://www.commodity-tv.com/ondemand/companies/profil/us-critical-metals-corp/ -, they also own the sought-after lithium and cobalt for lithium-ion batteries and rare earths. The projects are located in Nevada, Montana and Idaho. New and modern technologies that are increasingly conquering our lives require rare earths and critical metals.
This applies, for example, to the electronics, automotive, manufacturing and energy sectors. Wind turbines, electric motors in electric vehicles, batteries, as well as communications technology, defense and healthcare are just a few examples of applications.
Current company information and press releases from Uranium Royalty (- https://www.resource-capital.ch/en/companies/uranium-royalty-corp/ -) and US Critical Metals (- https://www.resource-capital.ch/en/companies/us-critical-metals-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
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