Welcome to today’s Daily Finance Newsletter, where we simplify complex stories from the world of stocks and investing — so even first-time investors can understand what’s really happening behind the tickers.
Today’s deep dive: Uranium Royalty Corp (UROY) — a company that doesn’t mine uranium itself, yet still profits every time others do.
The Big Picture: Why Everyone’s Suddenly Talking About Uranium
The world is entering what many call a “Nuclear Renaissance.”
After years of fear following Japan’s Fukushima disaster in 2011, nuclear energy is back — stronger and cleaner than ever.
Here’s why:
Global energy demand is exploding — thanks to AI, data centers, and electric vehicles.
Countries want carbon-free power that’s reliable, not dependent on weather like solar or wind.
Public support for nuclear power has jumped from 50% in 1983 to 76% today.
But there’s a problem.
There simply isn’t enough uranium — the fuel that powers nuclear plants.
The Uranium Shortage Explained (Simply)
World demand: about 200 million pounds of uranium per year
Production: only 136 million pounds
Deficit: 64 million pounds — and that gap could grow to 451 million pounds by 2032
To meet this demand, the world needs at least 6 to 8 new major uranium mines by 2030.
But building mines takes years and billions of dollars — meaning supply will stay tight.
Prices tell the story too:
Uranium touched $107/lb in early 2024
Then cooled to around $75/lb — but most experts think it’s a short pause, not a peak.
Meet Uranium Royalty Corp (UROY): The Middleman of the Uranium World
Instead of digging up uranium, Uranium Royalty Corp collects a small share of profits (royalties) every time its partner mines produce.
It’s like owning a toll booth on the uranium highway — earning fees while others do the heavy lifting.
Founded in 2017, UROY is listed on NASDAQ and the Toronto Stock Exchange and is the only company in the world focused solely on uranium royalties.
What Makes It Unique
22+ royalty projects in Canada, the U.S., Namibia, and Australia
Owns 2.76 million pounds of uranium stored safely — worth about CAD $300 million
Has no debt and around CAD $9.7 million cash
Doesn’t operate mines — so it avoids big costs and risks
In simple terms:
UROY is not mining uranium. It’s earning from others who mine it.
The Bullish View: “The Smart Way to Ride the Nuclear Boom”
By David Desjardins (Seeking Alpha)
According to David Desjardins, UROY’s setup could be one of the smartest low-risk plays in uranium.
He explains that UROY earns money from some of the world’s most powerful uranium mines:
McArthur River (Canada)
One of the largest uranium mines in the world, run by Cameco
UROY gets a 1% royalty on 9% of its output
Could make around CAD $2 million a year at $80/lb prices
Mine expected to keep producing until 2044
Cigar Lake (Canada)
The highest-grade uranium mine globally (17% concentration!)
UROY holds a 10–20% profit interest on 3.75% of its production
Still waiting for royalties to kick in — but big long-term upside once the mine repays its initial costs
Langer Heinrich (Namibia)
Restarted in 2024 under Paladin Energy
UROY earns a small per-kilo royalty
A consistent earner with almost no cost attached
According to Desjardins, UROY gives investors exposure to uranium’s upside without the headaches of running mines — and its physical uranium holdings provide a solid value floor if the stock ever dips.
He calls it “a pure-play uranium vehicle — a rare way to bet on the world’s shift toward nuclear power.”
The Bearish View: “Looks More Like a Trading Fund Than a Royalty Company”
By Jacob H (Seeking Alpha)
Not everyone’s convinced.
Analyst Jacob H argues that UROY talks like a royalty company but acts like a uranium trader.
Here’s what he found:
Only 2 out of 22 projects actually generate royalties.
Royalty revenue last quarter: CAD $4,000 (yes, just four thousand).
Operating loss: CAD $1.9 million.
Cash burn: CAD $25 million over nine months.
He says most of UROY’s money comes from buying and selling uranium — not from royalty payments.
In his words, it’s “more like a uranium fund wearing a royalty company’s suit.”
Jacob also warns that the stock is trading at a massive premium to what its assets are really worth:
Valuation: 21× sales, compared to energy sector average of 1.8×
Analysts think it’s worth around CAD $126 million, but the market prices it near CAD $460 million
His verdict: “It’s a clever idea, but too expensive for what it currently delivers.”
The Cautious Investor’s Take
By Ole CNX and HT Ganzo (Seeking Alpha)
Two other analysts, Ole CNX and HT Ganzo, see both potential and pitfalls.
Ole CNX’s View:
Believes UROY has a clean, scalable model, but admits the story is still early.
Notes that cash burn and share dilution (more shares being issued) are real problems.
Recommends covered call strategies — earning premiums while waiting for the long-term upside.
HT Ganzo’s View:
Says UROY’s royalty portfolio is “mostly average,” with just a few standout assets.
Points to heavy share dilution — with warrants and options representing nearly 19% of total equity.
Estimates UROY’s net asset value around CAD $126 million, far below its market cap.
Final rating: Sell. “It looks good on the surface but doesn’t justify its price.”
The Simple Reality for Investors
Let’s put it in plain English:
Metric | Reality |
|---|---|
Number of projects | 22+ (but most aren’t producing yet) |
Royalties that pay today | Only 2 |
Annual operating cost | ~CAD $7.7 million |
Annual royalty income | ~CAD $2.2 million |
Deficit | Around CAD $5.5 million per year |
Market Cap | CAD $460 million |
Value of uranium holdings | ~CAD $303 million |
So while the story sounds exciting, most of the company’s real income lies years away — likely in the late 2020s or early 2030s.
Risk Factors to Keep in Mind
Uranium price swings: If prices fall back to $50/lb, the whole thesis weakens.
Partner delays: If mining partners face issues or delays, UROY can’t do much.
Dilution: Frequent share issues could reduce each investor’s ownership slice.
Slow cash flow: Most royalties may take years to start paying.
The Bottom Line: A Speculative Bet, Not a Steady Earner
UROY is like buying a lottery ticket on the uranium boom — with some built-in safety from its physical uranium holdings.
If uranium prices keep climbing, it could easily double.
But if they drop, or if production delays continue, investors might wait years before seeing meaningful returns.
Consensus from analysts:
“Interesting idea. Overpriced today. Worth watching, not chasing.”
Ratings range from Sell to Hold, with some only recommending a Buy via covered-call strategies for added safety.
Final Thoughts
In the world of uranium, UROY stands out for its uniqueness, not its profits — yet.
It’s a company positioned for the future but still waiting for that future to arrive.
As our curated experts sum it up:
“UROY lets you bet on the nuclear revival without getting your hands dirty — but patience and timing are everything.” I will wait to see atlest 4-5 mines start giving royalties before investing.