Company Leadership Changes - Uranium Royalty Corp. has appointed Andy Marshall as the new Chief Financial Officer, succeeding Josephine Man [1][2] - Josephine Man has been recognized for her seven years of financial leadership and her impact on the company's foundational stage [2] Executive Background - Andy Marshall brings over 20 years of senior financial leadership experience in the natural resources sector, including roles as CFO at multiple publicly listed resource companies [2] - His expertise includes corporate financial management, strategic planning, project development, accounting, corporate reporting, financial and risk management, transactional financing, M&A, and support for growth-stage mining companies [2] Company Overview - Uranium Royalty Corp. is the only publicly traded uranium-focused royalty and streaming company, providing investors with exposure to uranium commodity prices through strategic acquisitions [3] - The company is positioned as a capital provider to an industry requiring significant investments to meet the growing demand for uranium as fuel for carbon-free nuclear energy [3] - Management and the Board possess extensive experience in the uranium and nuclear energy sectors, with specific expertise in mine finance, project identification, evaluation, development, and uranium sales and trading [3]

Core Viewpoint - Uranium Royalty Corp. has entered into an agreement to acquire a new royalty on the Aberdeen Uranium Project in Nunavut, Canada, operated by Forum Energy Metals Corp. [1] Group 1: Acquisition Details - The acquisition involves a 2.0% gross revenue royalty on the Aberdeen Project, with a buy-back option for Forum to repurchase 0.5% of the royalty for CAD$1,000,000 within six months of a successful pre-feasibility study [5][8] - The total cash payment for the royalty acquisition is CAD$1,000,000, scheduled to close by the end of May 2025, funded from cash on hand [8] Group 2: Project Overview - The Aberdeen Project is an exploration stage project covering approximately 95,519 hectares, located in the underexplored Thelon Basin, adjacent to the Kiggavik advanced uranium project [4][8] - The Kiggavik Project, operated by Orano, hosts over 132 million pounds of U₃O₈ in indicated and inferred resources, making it one of the largest undeveloped uranium projects globally [8] Group 3: Exploration Potential - Drilling results from the Aberdeen Project have shown high-grade uranium mineralization, including 1.15% U₃O₈ over 2.4 meters, 0.62% over 17.9 meters, and 0.11% U₃O₈ over 35.3 meters [8]

Core Points - Uranium Royalty Corp. has appointed Mr. Ken Robertson as a director, enhancing its governance and growth objectives [1][2] - Mr. Robertson has a strong background in audit and financial management, previously serving as a partner and Global Mining & Metals Group Leader at Ernst & Young LLP [2] - His experience includes initial public offerings, financings, governance, and securities regulatory compliance, making him a valuable asset to the company [2] Company Background - Uranium Royalty Corp. is focused on growth in the uranium sector and aims to strengthen its corporate governance through the addition of experienced professionals [1][2] - The company is listed on NASDAQ and TSX, indicating its presence in major financial markets [1]

Group 1: Election of Directors - All nominees listed in the management information circular dated August 23, 2024, were elected as directors at the annual general and special meeting held on October 17, 2024 [1] - The voting results for the directors were as follows: Amir Adnani (83.17% for), Scott Melbye (83.32% for), Vina Patel (98.12% for), Neil Gregson (98.23% for), and Donna Wichers (82.98% for) [1][2] - The Board now consists of Amir Adnani, Scott Melbye, Vina Patel, Neil Gregson, and Donna Wichers, with Amir Adnani appointed as Chairman and Vina Patel as lead independent director [1] Group 2: Board Committees - The Audit Committee is composed of Neil Gregson (Chair), Vina Patel, and Donna Wichers [1] - The Compensation Committee is composed of Vina Patel (Chair) and Neil Gregson [1] - The Nominating and Corporate Governance Committee is composed of Vina Patel (Chair), Neil Gregson, and Donna Wichers [1] Group 3: Appointment of New Director - Donna Wichers has been elected as a new member of the Board, bringing over 40 years of experience in senior roles within the uranium mining industry [3] - Wichers has held positions with companies such as Uranium One Americas Inc., Orano SA, and Westinghouse, and has provided consulting services to the International Atomic Energy Commission since 2015 [3][4] - Her qualifications include a Master of Science in Water Resources and a Bachelor of Science with Honors in Microbiology from the University of Wyoming [3] Group 4: Company Overview - Uranium Royalty Corp. (URC) is the only uranium-focused royalty and streaming company listed on NASDAQ, providing investors with exposure to uranium commodity prices [5] - The company aims to capitalize on the growing need for uranium as fuel for carbon-free nuclear energy through strategic acquisitions and trading of physical uranium [5] - URC's management and Board possess extensive experience in the uranium and nuclear energy sectors, including mine finance and project evaluation [5]

Core Viewpoint - Uranium Royalty Corp (UROY) is currently viewed as having reached a valuation that presents potential upside for investors, despite its historical underperformance compared to peers in the uranium sector [3][4][6]. Group 1: Market Context - The uranium bull market is still in its early stages, with significant price movements in the commodity itself not fully reflected in uranium stocks [4][5]. - The Sprott Physical Uranium Trust has seen a price increase of 105%, indicating a strong demand for uranium, while many uranium stocks have underperformed [5][6]. - The uranium market is characterized by a significant supply deficit, with a structural gap expected to persist through 2040 [5][6]. Group 2: Company Performance - UROY has been the worst performer among its peers, with a price change of -53.40% compared to the S&P 500's increase of 26.58% [3][6][7]. - The company has a substantial inventory of uranium, with 2.7 million pounds at a weighted average cost of $57.54 per pound, valued at $225 million at current market prices [15][18]. - UROY trades at a 30% discount to its net asset value (NAV), suggesting potential for re-rating [8][10]. Group 3: Financial Outlook - UROY's cash burn rate is approximately CAD 7 million annually, which is significant relative to its uranium royalty portfolio [16][18]. - The company has a large liquid asset base that supports its current market capitalization, despite ongoing cash burn [15][19]. - Analysts suggest that the current valuation provides a floor for the stock, making it a speculative opportunity for investors [19][20].

Company Overview - Uranium Royalty Corp. (URC) is the world's only uranium-focused royalty and streaming company, providing investors with exposure to uranium commodity prices through strategic acquisitions [3] - The company is well positioned as a capital provider to an industry requiring significant investments to meet the growing demand for uranium as fuel for carbon-free nuclear energy [3] - URC's management and board possess extensive experience in the uranium and nuclear energy sectors, including expertise in mine finance, project evaluation, and uranium sales [3] Acquisition Details - URC has completed the acquisition of an additional royalty on a portion of the Churchrock uranium project owned by Laramide Resources Ltd. in New Mexico [1] - The royalty is structured as a Gross Overriding Royalty of 6% "Mine Price," covering 10 patented mining claims on the Churchrock Project [2] - The cash consideration paid by URC for this acquisition was US$3.5 million [2] Project Significance - The Churchrock Project is an advanced stage, in-situ recovery uranium project located in the Grants Mineral Belt of New Mexico, recognized as one of the largest and highest-grade undeveloped ISR uranium projects in the United States [1]

Core Viewpoint - Uranium Royalty Corp. has entered into a binding royalty purchase agreement to acquire an additional 6% Gross Overriding Royalty on the Churchrock uranium project in New Mexico, which is considered one of the largest undeveloped ISR uranium assets in the United States [21][8]. Transaction Details - The total consideration for the transaction is US$3.5 million, with US$1.75 million to be paid in cash to each of the two vendors [1]. - The purchase price will be funded from the company's cash and liquid assets [1]. Project Overview - The Churchrock Project is located in the Grants Mineral Belt of New Mexico, approximately 12 miles northeast of Gallup, and is 100% owned by NuFuels, Inc., a subsidiary of Laramide Resources Ltd. [10][21]. - The project has a total inferred mineral resource of 50.8 million pounds U3O8, with 10.22 million pounds U3O8 located in Section 8 [7][11]. Economic Assessment - A preliminary economic assessment estimates a Life of Mine production total of 31.2 million pounds U3O8, with an annual recovery of 975,000 pounds U3O8 from the Crownpoint Central Processing Plant over a mine life of 32 years [4]. - The Life of Mine unit operating cost is estimated at US$27.70 per pound U3O8, assuming a static uranium price of US$75 per pound U3O8 [13]. Legislative Context - Recent bipartisan legislation in the U.S. Congress aims to revitalize the domestic nuclear fuel cycle, including acts to phase out Russian uranium imports by 2028, which supports the acquisition of additional uranium assets [8]. Closing Conditions - The closing of the transaction is subject to customary closing conditions and is expected to occur before the end of July 2024 [9].

[Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Condensed Interim Consolidated Statements of Financial Position](index=2&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) As of January 31, 2023, Uranium Royalty Corp. reported total assets of $192.6 million, an increase from $178.2 million as of April 30, 2022, driven by increases in inventories and short-term investments, while total liabilities rose to $16.5 million from $13.5 million, mainly due to an increase in the margin loan payable, resulting in total shareholders' equity increasing to $176.1 million from $164.6 million Consolidated Statements of Financial Position (in thousands of CAD) | Account | As at Jan 31, 2023 ($) | As at Apr 30, 2022 ($) | | :--- | :--- | :--- | | **Total Current Assets** | 147,843 | 134,030 | | **Total Non-current Assets** | 44,785 | 44,143 | | **Total Assets** | **192,628** | **178,173** | | **Total Current Liabilities** | 16,424 | 486 | | **Total Non-current Liabilities** | 86 | 13,051 | | **Total Liabilities** | **16,510** | **13,537** | | **Total Shareholders' Equity** | **176,118** | **164,636** | [Condensed Interim Consolidated Statements of Loss and Comprehensive Income (Loss)](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Income%20%28Loss%29) For the nine months ended January 31, 2023, the company reported a net loss of $6.5 million, compared to a net loss of $3.7 million in the prior-year period, driven by higher operating expenses and increased interest expense, resulting in a total comprehensive loss of $3.8 million, a significant shift from a comprehensive income of $3.8 million in the same period last year Key Performance Indicators (in thousands of CAD, except per share data) | Metric | Nine Months Ended Jan 31, 2023 | Nine Months Ended Jan 31, 2022 | | :--- | :--- | :--- | | Operating loss | (5,296) | (4,170) | | Net loss for the period | (6,512) | (3,653) | | Total comprehensive income (loss) | (3,822) | 3,821 | | Net loss per share, basic and diluted | (0.07) | (0.04) | - Key expense drivers for the nine months ended January 31, 2023, included investor communications and marketing (**$1.48M**), interest expense (**$1.28M**), professional fees (**$0.70M**), and share-based compensation (**$0.85M**)[3](index=3&type=chunk) [Condensed Interim Consolidated Statements of Changes in Equity](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Shareholders' equity increased from $164.6 million at April 30, 2022, to $176.1 million at January 31, 2023, primarily driven by **$14.2 million** in net proceeds from the At-the-Market (ATM) offering and **$2.7 million** in total other comprehensive income, partially offset by a net loss of **$6.5 million** for the period Changes in Equity for the Nine Months Ended January 31, 2023 (in thousands of CAD) | Description | Amount ($) | | :--- | :--- | | **Balance at April 30, 2022** | **164,636** | | Net proceeds from At-the-Market offering | 14,224 | | Share-based compensation | 849 | | Proceeds from exercise of options and warrants | 231 | | Net loss for the period | (6,512) | | Total other comprehensive income | 2,690 | | **Balance at January 31, 2023** | **176,118** | [Condensed Interim Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended January 31, 2023, cash increased by **$6.0 million**, with **$10.3 million** used in operating activities primarily for inventory purchases, **$0.8 million** generated from investing activities, and a significant inflow of **$15.4 million** from financing activities, mainly from the At-the-Market offering and net proceeds from the margin loan Cash Flow Summary for the Nine Months Ended January 31 (in thousands of CAD) | Activity | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | Cash used in operating activities | (10,250) | (59,842) | | Cash generated from (used in) investing activities | 769 | (12,024) | | Cash generated from financing activities | 15,447 | 71,475 | | **Net increase (decrease) in cash** | **5,966** | **(391)** | | **Cash, end of period** | **10,351** | **6,823** | [Notes to Condensed Interim Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [Note 1. Corporate Information](index=6&type=section&id=1.%20Corporate%20Information) Uranium Royalty Corp. (URC) is a Canadian-incorporated company engaged in acquiring and assembling a portfolio of uranium royalties, investing in companies with direct uranium exposure, and holding physical uranium, with its common shares listed on the TSX-V under 'URC' and on the NASDAQ under 'UROY' - The company's principal business activities are acquiring uranium royalties, investing in uranium-exposed companies, and holding physical uranium[6](index=6&type=chunk) [Note 2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) The unaudited condensed interim consolidated financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), specifically IAS 34, Interim Financial Reporting, with accounting policies consistent with those in the annual financial statements for the year ended April 30, 2022, and presented in Canadian dollars - The financial statements comply with IFRS and IAS 34 and should be read in conjunction with the April 30, 2022 annual statements[8](index=8&type=chunk) - The financial statements include URC and its wholly-owned subsidiaries, Uranium Royalty (USA) Corp. and Reserve Minerals, LLC[12](index=12&type=chunk) [Note 4. Short-term Investments](index=7&type=section&id=4.%20Short-term%20Investments) As of January 31, 2023, the fair value of short-term investments was **$54.2 million**, up from **$51.8 million** at April 30, 2022, primarily consisting of shares in Yellow Cake plc (**$47.8 million**) and Queen's Road Capital Investment Ltd. (**$6.3 million**), with the Yellow Cake shares pledged as security for a margin loan Fair Value of Short-term Investments (in thousands of CAD) | Investment | Jan 31, 2023 ($) | Apr 30, 2022 ($) | | :--- | :--- | :--- | | Yellow Cake plc | 47,843 | 44,912 | | Queen's Road Capital Investment Ltd. | 6,337 | 6,875 | | **Total** | **54,180** | **51,787** | - The company's ordinary shares of Yellow Cake are pledged as security for its margin loan facility[19](index=19&type=chunk) [Note 5. Inventories](index=7&type=section&id=5.%20Inventories) The company's physical uranium holdings increased during the period, with URC holding **1,548,068 pounds** of U3O8 with a carrying value of **$82.5 million** as of January 31, 2023, compared to **1,448,068 pounds** valued at **$75.0 million** as of April 30, 2022 Physical Uranium (U3O8) Inventory | Metric | As at Jan 31, 2023 | As at Apr 30, 2022 | | :--- | :--- | :--- | | Pounds of U3O8 | 1,548,068 | 1,448,068 | | Carrying Value (thousands of CAD) | $82,542 | $75,030 | [Note 6. Royalties and Royalty Options](index=7&type=section&id=6.%20Royalties%20and%20Royalty%20Options) The carrying value of the company's royalties portfolio increased to **$44.7 million** as of January 31, 2023, from **$44.0 million** at April 30, 2022, with the acquisition of a royalty on the Dawn Lake Project for **$139,000** during the period, and the portfolio includes key royalties on projects such as McArthur River, Cigar Lake, and Roughrider Royalties and Royalty Options Value (in thousands of CAD) | Description | Amount ($) | | :--- | :--- | | Balance, as at April 30, 2022 | 44,023 | | Additions | 139 | | Foreign currency translation | 521 | | **Balance, as at January 31, 2023** | **44,683** | - In Q3 FY2023, the company acquired a **10%** to **20%** sliding scale NPI royalty on a **7.5%** share of uranium production from the Dawn Lake project[31](index=31&type=chunk) [Note 8. Margin Loan Payable](index=9&type=section&id=8.%20Margin%20Loan%20Payable) The company maintains a margin loan facility with the Bank of Montreal, secured by its Yellow Cake shares, with an outstanding balance of **$15.7 million** as of January 31, 2023, a maximum amount of approximately **$18.6 million** (US**$15 million**), and a maturity date of May 5, 2023, with subsequent repayments and drawdowns occurring after the period end - The margin loan is subject to an interest rate of Adjusted Term SOFR Rate plus **5.50%** per annum[34](index=34&type=chunk) Margin Loan Movement (in thousands of CAD) | Description | Amount ($) | | :--- | :--- | | Balance, as at April 30, 2022 | 12,908 | | Draw-down | 3,889 | | Principal payment | (1,710) | | Interest expense & FX loss | 1,806 | | Interest paid | (1,165) | | **Balance, as at January 31, 2023** | **15,728** | - Subsequent to January 31, 2023, the company made a partial repayment of **$13.7 million** (US**$10 million**) and an additional drawdown of **$6.8 million** (US**$5 million**)[36](index=36&type=chunk) [Note 9. Issued Capital](index=10&type=section&id=9.%20Issued%20Capital) The company actively utilized its At-the-Market (ATM) equity program, issuing **4.0 million** common shares for gross proceeds of **$14.6 million** during the nine months ended January 31, 2023, with the ATM program renewed in September 2022 for up to US**$40 million**, and share-based compensation for the nine-month period amounting to **$849,000** [Common Shares and At-the-Market Program](index=10&type=section&id=9.1%20Common%20Shares) The company renewed its At-the-Market (ATM) equity program on September 1, 2022, allowing for the distribution of up to US**$40 million** in common shares, and during the nine months ended January 31, 2023, the company issued **4,029,021** common shares under the ATM program, raising gross proceeds of **$14.6 million** - During the nine months ended January 31, 2023, the Company issued **4,029,021** common shares under the ATM Program for gross proceeds of **$14,589,000**, with related costs of **$365,000**[41](index=41&type=chunk) [Reserves (Warrants and Options)](index=11&type=section&id=9.2%20Reserves) As of January 31, 2023, the company had **17.5 million** warrants outstanding, primarily exercisable at **$2.00** per share, and **1.2 million** share options outstanding with a weighted average exercise price of **$3.50**, with **500,750** new options granted during the nine-month period at a weighted average exercise price of **$3.29** Share Option Activity | Description | Number of options | Weighted Average Exercise Price ($) | | :--- | :--- | :--- | | Balance at April 30, 2022 | 755,000 | 3.62 | | Granted | 500,750 | 3.29 | | Forfeited | (20,000) | 3.40 | | Exercised | (37,500) | 3.49 | | **Balance at January 31, 2023** | **1,198,250** | **3.50** | - Share-based compensation expense recognized during the nine months ended January 31, 2023, was **$849,000** (2022: **$1,127,000**)[49](index=49&type=chunk) [Note 10. Financial Instruments and Risk Management](index=12&type=section&id=10.%20Financial%20Instruments) The company is exposed to various financial risks, including credit, liquidity, commodity price, interest rate, currency, and other price risks, with liquidity risk managed by monitoring cash reserves, and a working capital of **$131.4 million** as of January 31, 2023, while being sensitive to currency fluctuations and equity price changes in its short-term investments - A **10%** change in the CAD/GBP exchange rate would impact other comprehensive income by approximately **$4.1 million**, net of tax, due to its short-term investments[57](index=57&type=chunk) - A **10%** change in the equity prices of its short-term investments would impact other comprehensive income by approximately **$4.7 million**, net of tax[58](index=58&type=chunk) - As of January 31, 2023, the company had a working capital of **$131.4 million**, which management believes is sufficient for at least the next twelve months[55](index=55&type=chunk) [Note 11. Related Party Transactions](index=14&type=section&id=11.%20Related%20Party%20Transactions) Transactions with key management personnel are the primary related party transactions, with total remuneration for directors and key management amounting to **$906,000** for the nine months ended January 31, 2023, including salaries, fees, and share-based compensation Remuneration of Key Management (in thousands of CAD) | Category | Nine Months Ended Jan 31, 2023 ($) | Nine Months Ended Jan 31, 2022 ($) | | :--- | :--- | :--- | | Management salaries | 268 | 219 | | Directors' fees | 149 | 137 | | Share-based compensation | 489 | 479 | | **Total** | **906** | **835** | [Note 13. Commitments](index=14&type=section&id=13.%20Commitments) The company has a commitment to purchase **500,000 pounds** of physical uranium from CGN Global Uranium Ltd for a total of **$31.7 million**, with deliveries scheduled between October 2023 and April 2025, and additionally committed to acquiring a portfolio of royalties from Anfield Energy Inc. for US**$1.5 million**, which was paid at closing on February 7, 2023 - Commitment to purchase **500,000 lbs** of U3O8 from CGN at a weighted average price of US**$47.71** per pound, for delivery between **2023** and **2025**[62](index=62&type=chunk) - Agreed to acquire a portfolio of royalties from Anfield Energy Inc. for US**$1.5 million**, which closed on February 7, 2023[63](index=63&type=chunk) [Note 14. Subsequent Events](index=14&type=section&id=14.%20Subsequent%20Events) Subsequent to the reporting period ended January 31, 2023, the company purchased an additional **200,000 pounds** of U3O8 for **$13.9 million**, at a weighted average price of US**$51.00** per pound - After January 31, 2023, the company purchased **200,000 pounds** of U3O8 at a weighted average price of US**$51.00** per pound for a total of **$13.9 million**[64](index=64&type=chunk)

[Consolidated Financial Statements](index=1&type=section&id=Consolidated%20Financial%20Statements) [Condensed Interim Consolidated Statements of Financial Position](index=2&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) As of October 31, 2022, total assets increased to C$187.0 million, liabilities rose to C$17.0 million, and shareholders' equity grew to C$170.0 million, primarily due to inventory and short-term investment growth and an increased margin loan payable Consolidated Statements of Financial Position (as of Oct 31, 2022 vs. Apr 30, 2022) | Account | As at Oct 31, 2022 (C$ thousands) | As at Apr 30, 2022 (C$ thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | 141,978 | 134,030 | ▲ C$7,948 | | Inventories | 82,542 | 75,030 | ▲ C$7,512 | | Short-term investments | 54,520 | 51,787 | ▲ C$2,733 | | **Total Non-current Assets** | 45,014 | 44,143 | ▲ C$871 | | **Total Assets** | **186,992** | **178,173** | **▲ C$8,819** | | **Total Current Liabilities** | 16,870 | 486 | ▲ C$16,384 | | Margin loan payable (Current) | 16,213 | — | ▲ C$16,213 | | **Total Non-current Liabilities** | 132 | 13,051 | ▼ C$12,919 | | Margin loan payable (Non-current) | — | 12,908 | ▼ C$12,908 | | **Total Liabilities** | **17,002** | **13,537** | **▲ C$3,465** | | **Total Shareholders' Equity** | **169,990** | **164,636** | **▲ C$5,354** | [Condensed Interim Consolidated Statements of Loss and Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Income%20%28Loss%29) For the six months ended October 31, 2022, the company reported a net loss of C$4.7 million and a total comprehensive loss of C$2.8 million, primarily due to increased operating expenses and a smaller unrealized gain on short-term investments Financial Performance Summary (in C$ thousands) | Metric | Three Months Ended Oct 31, 2022 | Three Months Ended Oct 31, 2021 | Six Months Ended Oct 31, 2022 | Six Months Ended Oct 31, 2021 | | :--- | :--- | :--- | :--- | :--- | | Operating loss | (1,860) | (1,603) | (3,294) | (2,994) | | Net loss for the period | (2,266) | (590) | (4,715) | (1,654) | | Total other comprehensive income | 6,421 | 6,485 | 1,905 | 10,226 | | Total comprehensive income (loss) | 4,155 | 5,895 | (2,810) | 8,572 | | Net loss per share, basic and diluted | (0.02) | (0.01) | (0.05) | (0.02) | [Condensed Interim Consolidated Statements of Changes in Equity](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Shareholders' equity increased to C$170.0 million by October 31, 2022, primarily driven by net proceeds from the ATM offering and total other comprehensive income, partially offset by the net loss for the period Changes in Equity for the Six Months Ended October 31, 2022 (in C$ thousands) | Description | Amount | | :--- | :--- | | **Balance at April 30, 2022** | **164,636** | | Common shares issued for cash (ATM offering) | 7,606 | | Agents' fees and issuance costs | (191) | | Share-based compensation | 737 | | Net loss for the period | (4,715) | | Total other comprehensive income | 1,905 | | Other (warrant exercises) | 12 | | **Balance at October 31, 2022** | **169,990** | [Condensed Interim Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended October 31, 2022, operating activities used C$7.7 million, primarily due to inventory investment, while financing activities generated C$8.9 million, leading to a net cash increase of C$0.14 million Cash Flow Summary for the Six Months Ended October 31 (in C$ thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Cash used in operating activities | (7,749) | (30,083) | | Cash generated from (used in) investing activities | (961) | (12,025) | | Cash generated from financing activities | 8,852 | 55,660 | | **Net increase in cash** | **144** | **13,554** | | **Cash, end of period** | **4,529** | **20,768** | [Notes to Condensed Interim Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [Note 1: Corporate Information](index=7&type=section&id=1.%20Corporate%20Information) Uranium Royalty Corp. (URC) is a Canadian company focused on acquiring uranium royalties, investing in uranium-exposed companies, and holding physical uranium, with shares listed on TSX-V and NASDAQ - The company's core business strategy involves three main activities: acquiring royalties, investing in uranium-exposed companies, and holding physical uranium[7](index=7&type=chunk) - The company's common shares and listed warrants trade on the TSX Venture Exchange under symbols **'URC'** and **'URC.WT'**, respectively, and its common shares trade on the NASDAQ under **'UROY'**[8](index=8&type=chunk) [Note 2: Basis of Preparation](index=7&type=section&id=2.%20Basis%20of%20Preparation) The unaudited condensed interim consolidated financial statements were prepared in accordance with IFRS (IAS 34) and use Canadian dollars as the presentation currency, following consistent accounting policies - The financial statements comply with IFRS as issued by the IASB, applicable to interim financial statements (IAS 34)[9](index=9&type=chunk) - The financial statements are presented in Canadian dollars, which is the functional currency of the parent company, URC[11](index=11&type=chunk) [Note 4: Short-term Investments](index=8&type=section&id=4.%20Short-term%20Investments) As of October 31, 2022, short-term investments increased to C$54.5 million, primarily comprising Yellow Cake plc shares, which are pledged as security for the company's margin loan Fair Value of Short-term Investments (in C$ thousands) | Holding | Oct 31, 2022 | Apr 30, 2022 | | :--- | :--- | :--- | | Yellow Cake plc | 46,906 | 44,912 | | Queen's Road Capital Investment Ltd. | 5,758 | 6,875 | | Sprott Physical Uranium Trust Fund | 1,856 | Nil | | **Total Fair Value** | **54,520** | **51,787** | - The company has an option to acquire U3O8 from Yellow Cake, up to a maximum of **US$31.25 million**, between 2019 and 2028[18](index=18&type=chunk) - The ordinary shares of Yellow Cake are pledged as security for the margin loan (Note 8)[20](index=20&type=chunk) [Note 5: Inventories](index=8&type=section&id=5.%20Inventories) As of October 31, 2022, physical uranium inventory increased to 1,548,068 pounds, with a carrying value of C$82.5 million Uranium (U3O8) Inventory | Metric | As at Oct 31, 2022 | As at Apr 30, 2022 | | :--- | :--- | :--- | | Pounds of U3O8 | 1,548,068 | 1,448,068 | | Carrying Value (C$ thousands) | 82,542 | 75,030 | [Note 6: Royalties and Royalty Options](index=8&type=section&id=6.%20Royalties%20and%20Royalty%20Options) The company's royalty portfolio was valued at C$44.9 million as of October 31, 2022, encompassing various royalty types on key uranium projects across Canada, the US, and Namibia Carrying Value of Royalties by Project (in C$ thousands) | Project | As at Oct 31, 2022 | As at Apr 30, 2022 | | :--- | :--- | :--- | | McArthur River project | 11,543 | 11,543 | | Roughrider project | 5,923 | 5,923 | | Cigar Lake project | 4,704 | 4,704 | | Michelin project | 4,262 | 4,262 | | Other Projects | 18,474 | 17,641 | | **Total** | **44,906** | **44,023** | - The company holds a **1% gross overriding royalty** on a portion of Orano's share of production from the McArthur River Project and a **10-20% sliding scale net profits interest (NPI) royalty** on a portion of Orano's share of production from the Cigar Lake Project[31](index=31&type=chunk) [Note 8: Margin Loan Payable](index=10&type=section&id=8.%20Margin%20Loan%20Payable) The company has a margin loan facility of up to US$15 million, secured by Yellow Cake shares, with an outstanding balance of C$16.2 million as of October 31, 2022, maturing in May 2023 - The margin loan facility is for a maximum of approximately **C$18.5 million (US$15 million)** and is secured by a pledge of all Yellow Cake shares held by the company[33](index=33&type=chunk)[34](index=34&type=chunk) Margin Loan Movement (in C$ thousands) | Description | Amount | | :--- | :--- | | Balance, as at April 30, 2022 | 12,908 | | Draw-down | 3,889 | | Principal payment | (1,710) | | Interest expense | 816 | | Interest paid | (625) | | Unrealized foreign exchange loss | 935 | | **Balance, as at October 31, 2022** | **16,213** | [Note 9: Issued Capital](index=11&type=section&id=9.%20Issued%20Capital) The company utilizes an At-the-Market (ATM) equity program, raising C$7.6 million in gross proceeds, and as of October 31, 2022, had 17.6 million warrants and 1.24 million share options outstanding [At-the-Market Equity Program](index=11&type=section&id=9.1%20At-the-Market%20Equity%20Program) - On September 1, 2022, the company renewed its ATM Program, allowing it to distribute up to **US$40 million** of common shares at prevailing market prices[38](index=38&type=chunk) - During the six months ended October 31, 2022, the company issued **2,066,319 common shares** under the ATM Program for gross proceeds of **C$7.6 million**[39](index=39&type=chunk) [Warrants and Share Options](index=12&type=section&id=9.2%20Warrants%20and%20Share%20Options) - As of October 31, 2022, there were **17,578,842 warrants outstanding**, including **17,483,254 listed warrants** with an exercise price of **$2.00 per share**[42](index=42&type=chunk)[43](index=43&type=chunk) Share Options Movement (Number of options) | Description | Number of Options | Weighted Avg. Exercise Price ($) | | :--- | :--- | :--- | | Balance at April 30, 2022 | 755,000 | 3.62 | | Granted | 500,750 | 3.29 | | Forfeited | (12,500) | 3.71 | | **Balance at October 31, 2022** | **1,243,250** | **3.50** | - Share-based compensation expense recognized during the six months ended October 31, 2022, was **C$737 thousand**[49](index=49&type=chunk) [Note 10: Financial Instruments and Risk Management](index=13&type=section&id=10.%20Financial%20Instruments) The company faces credit, liquidity, interest rate, currency, and price risks, managing liquidity with C$125.1 million working capital and being sensitive to currency and equity price fluctuations - The company's working capital (current assets less current liabilities) was **C$125,108 thousand** as at October 31, 2022, which management believes is sufficient for at least the next twelve months[54](index=54&type=chunk) - A **10% change** in the CAD/USD exchange rate would impact net loss by approximately **C$1.4 million** due to the USD-denominated margin loan[57](index=57&type=chunk) - A **10% change** in the equity prices of the company's short-term investments would impact other comprehensive income by approximately **C$4.1 million**, net of tax[58](index=58&type=chunk) [Note 11: Related Party Transactions](index=15&type=section&id=11.%20Related%20Party%20Transactions) Total remuneration for directors and key management personnel increased to C$681 thousand for the six months ended October 31, 2022, comprising salaries, directors' fees, and share-based compensation Key Management Compensation (in C$ thousands) | Category | Six Months Ended Oct 31, 2022 | Six Months Ended Oct 31, 2021 | | :--- | :--- | :--- | | Management salaries | 175 | 158 | | Directors' fees | 97 | 92 | | Share-based compensation | 409 | 386 | | **Total** | **681** | **636** | [Note 12: Operating Segments](index=15&type=section&id=12.%20Operating%20Segments) The company operates as a single segment focused on uranium royalties, investments, and physical uranium, with assets primarily in Canada but global exposure through royalties and investments - The company conducts its business as a single operating segment, which is the acquiring and assembling a portfolio of royalties, investing in companies with direct exposure to uranium and holding of physical uranium[61](index=61&type=chunk) [Note 13: Commitments](index=15&type=section&id=13.%20Commitments) The company is committed to purchase 500,000 pounds of physical uranium for US$32.5 million from CGN Global Uranium Ltd, with deliveries scheduled in three tranches through April 2025 - The company is committed to purchase **500,000 pounds** of physical uranium at a weighted average price of **US$47.71 per pound**, for a total of **C$32.5 million**, from CGN Global Uranium Ltd[62](index=62&type=chunk) - Delivery dates for the committed uranium purchase are set for **October 2023 (300k lbs)**, **June 2024 (100k lbs)**, and **April 2025 (100k lbs)**[62](index=62&type=chunk) [Note 14: Subsequent Events](index=16&type=section&id=14.%20Subsequent%20Events) Subsequent to period end, the company acquired US royalties for US$1.5 million and issued 1.9 million shares via its ATM program for C$6.8 million in gross proceeds - On November 17, 2022, the company agreed to acquire a portfolio of royalties on several US projects from Anfield Energy Inc. for **US$1.5 million** in cash[64](index=64&type=chunk) - Subsequent to October 31, 2022, the company issued an additional **1,897,802 shares** under its ATM Program for gross proceeds of approximately **C$6.8 million**[65](index=65&type=chunk)