Whether focused on precious metals or uranium, which is important for the energy transition, royalty companies offer special opportunities for investors.
Advertisement/Advertising – This article is distributed on behalf of Uranium Royalty Corp. and Vizsla Royalties Corp., with whom SRC swiss resource capital AG has paid has non-performance-based paid IR advisory agreements. Creator: SRC swiss resource capital AG · Author: Ingrid Heinritzi · First published: 20.10.2025, 4:00 p.m. Europe/Berlin
The first royalty company in the mining sector was founded in 1983, Franco-Nevada Corporation, and others followed. Unlike traditional mining companies, royalty or license fee companies do not own their own mines. They help mining companies with the necessary financing, as exploration and production projects require a lot of capital to set up. Or they make a one-time payment and in return receive a certain return from raw material or mining projects or a share of the mining operators' revenues.
Royalty companies boast a large number of investments, while conventional companies often only have one or a few projects. This ensures risk diversification. In addition to this diversification, royalty companies score points with an attractive risk/reward profile and lower volatility. At the same time, they are hardly affected by operational risks, but automatically benefit from the successes of the mine operators. This creates a win-win situation for mine operators and royalty companies.
And if commodity prices rise, as has recently been the case with gold and silver, royalty companies also benefit. On the other hand, royalty companies are also disadvantaged when commodity prices fall, projects are delayed, or a producing country is politically unstable. The percentage share of a company's revenue or profit can relate to various commodities. Royalty companies usually focus on precious metals, as is the case with Vizsla Royalties, a relatively young company founded in 2024.
In addition to gold and silver, uranium has also been attracting increased interest for some time now. This is because demand is growing faster than supply. And there is exactly one royalty company in the uranium sector.
Vizsla Royalties owns two NSR royalties. One is a 2% interest in the Panuco property in Mexico, which is a primary, high-grade silver resource. The other is a 3.5% interest in the Silverstone concessions.
Uranium Royalty - https://www.commodity-tv.com/ondemand/companies/profil/uranium-royalty-corp/ - stands out as the only royalty company in the uranium market. Investors thus gain unique diversification in the uranium sector by investing in Uranium Royalty.
Current company information and press releases from Uranium Royalty (- https://www.resource-capital.ch/en/companies/uranium-royalty-corp/ -) and Vizsla Royalties (- https://www.resource-capital.ch/en/companies/mag-silver-corp/ -).
Sources:
Vizsla Royalties, Uranium Royalty, Franco Nevada
https://www.wirtschaftsmeldungen.net/archives/98138
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