By all accounts, it appears that there is a silent agreement among uranium names focused on lifting the price of the yellow metal through any means possible. After yesterdays announcement that Kazatomprom, the largest producer of uranium globally, would be taking a major stake in a physical uranium fund, Uranium Royalty Corp (TSXV: URC) this morning looked to keep the party going.
Uranium Royalty has acquired additional physical uranium to its stockpile, following its purchase of 300,000 pounds of U3O8 back in September. This go round, the firm conducted four spot purchases totaling 400,000 pounds.
The latest purchase brings its total holdings to 1,048,068 pounds of physical uranium, at an average cost of US$37.64 per pound. The purchases announced this morning were conducted at an average cost of US$45.00 per pound of U3O8.
Based on current pricing, which was sitting at roughly US$47.25 per pound, the company has indicated that it has seen an unrealized gain of US$10.07 million on its overall position.
Uranium Royalty Corp last traded at 6.22 on the TSX Venture.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.