Uranium Royalty stock reiterated at Buy at H.C. Wainwright

Published 19/12/2024, 13:14
Uranium Royalty stock reiterated at Buy at H.C. Wainwright

On Thursday, H.C. Wainwright maintained a positive outlook on Uranium Royalty Corp (NASDAQ:UROY), reiterating a Buy rating and a price target of $7.70. The firm's stance comes in light of Uranium Royalty's recent strategic acquisition of a royalty interest in two uranium projects located in Saskatchewan, Canada.

The transaction involved Uranium Royalty purchasing a net profit interest royalty of 10% on approximately 20.7% participating interest in the Millennium and Cree (NYSE:WOLF) Extension Uranium Projects. The total cash consideration for this acquisition amounted to $6 million. The royalty will be payable once all qualifying pre-production expenditures, which have been incurred after the establishment of the royalty, are recovered.

This acquisition grants Uranium Royalty about 12,800 hectares in the Athabasca Basin, a region renowned for its uranium resources. The Millennium and Cree Extension projects are owned by Cameco (NYSE:CCJ) Corporation, a well-respected operator in the industry, although Cameco itself is not rated by H.C. Wainwright.

"In our view, the deal further strengthens UROY™s uranium portfolio through additional exposure to high-quality uranium assets in a premier mining region," the analysts added.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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