Uranium Royalty Corp

Our long-term view on uranium remains unchanged. The world needs more reliable electricity that is available continuously, while new uranium production is slow and expensive to develop. The recent shock around energy security may further accelerate the revival in nuclear power. After the 1973 oil crisis, construction began on almost 170 GW of nuclear capacity within a decade. These reactors still represent around 40% of the world’s nuclear power capacity today. History rarely repeats exactly, but energy insecurity has a way of changing governments’ attitudes towards nuclear power quickly.

Uranium Royalty sold off with the other material names, but there was no fundamental news that should have caused the decline. They diversified their royalty base to include commodities outside of uranium, which should make the business model more stable over the long term. Other uranium stocks have also done poorly even though uranium spot prices have been stable, indicating a potential mispricing in the market that could benefit Uranium Royalty as it continues to adapt and strengthen its position.

Uranium Royalty Corp (UROY) was our top contributor, as uranium prices strengthened and nuclear power gained momentum as a clean energy solution for AI data centers. This positioning reflects our long-standing conviction that nuclear energy will play a critical role in meeting the exponential growth in power demands from artificial intelligence infrastructure. UROY benefits from these price tailwinds without assuming operational or capital risk, as its royalty model provides pure exposure to uranium revenues from third-party producers. The company holds interests in several premium projects, including royalties on Cameco’s McArthur River and Cigar Lake mine—some of the most strategic assets in the uranium industry.