China's CGN Global to supply Uranium Royalty with physical uranium
(Kitco News) - Uranium Royalty (NASDAQ: UROY, TSX-V: URC) announced Thursday that it has entered into a supply stream agreement with China's CGN Global Uranium to purchase 500,000 pounds of U3O8 from CGN delivered at Cameco from 2023 through 2025 at a weighted average price of $47.71 per pound.
The company said that 300,000 pounds of U3O8 will be delivered on October 20, 2023, and additional 100,000 pounds of U308 each to be delivered on June 14, 2024 and April 2, 2025.
CGN Global is the overseas nuclear fuel business platform of China General Nuclear Power Group (CGN), the world's third largest, and China's biggest nuclear power operator with 25 units in operation (28.26GWe installed capacity).
CGN is also one of the world's largest nuclear power constructors with 6 units (7GWe installed capacity) under construction and has uranium production ownership interests in the Husab mine in Namibia and the Ortalyk, Irkol and Semizbay operations in Kazakhstan.
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CEO Scott Melbye commented, "In addition to attractive pricing, this strategic supply stream will provide URC with access to physical uranium in a timeframe, 2023-2025, where industry analysts forecast large 45-50 million pound annual supply deficits between production and reactor requirements at a time utility procurement volumes are expected to return to higher levels. As payment is made at the time of delivery, it requires no cash outlay today."
Uranium Royalty is the world's only uranium-focused royalty and streaming company and the only pure-play uranium listed company on the Nasdaq. URC provides investors with uranium commodity price exposure through strategic acquisitions in uranium interests, including royalties, streams, debt and equity in uranium companies, as well as through holdings of physical uranium.