Issue #35

Nuclear demand is exploding worldwide… Here are the 2 stocks positioned to benefit most.

The uranium market is entering one of its strongest cycles in decades — fueled by a global nuclear revival, energy security concerns, and massive 24/7 power demand from AI data centers. Behind the headlines, two very different players are emerging as top contenders for investors looking to ride the next uranium supercycle.

👉 One offers pure, high-octane exposure to uranium prices — without the risks of mining.
​ 👉 The other is the blue-chip backbone of the nuclear industry with unmatched Tier-One assets.
​ 👉 Both are positioned to capture the explosive upside created by shrinking supply, soaring demand, and accelerating political support for nuclear energy.

In today’s edition, we break down Uranium Royalty Corp. (UROY) and Cameco (CCJ) — two powerful but very different uranium plays that could help investors capitalize on the global shift toward clean, reliable, nuclear power.

Uranium Royalty Corp. (NASDAQ: UROY)

Uranium Royalty Corp. (NASDAQ: UROY) is the world's first and only pure-play uranium royalty and streaming company. It provides investors with targeted exposure to the uranium price upside without the direct operational risks and high capital costs associated with mining and exploration. The company focuses on building and managing a diversified portfolio of uranium interests.

Business Model and Revenue Streams 📦

Uranium Royalty Corp.'s business model is centered on generating value through non-operating interests in uranium assets and physical commodity ownership. This strategy allows for exposure to rising uranium prices while minimizing the capital and operating expenditures typically required of mining companies.

• Royalty Interests: This is a core revenue stream. UROY acquires royalties on uranium projects, which grant the company a percentage of the production or revenue from a mine once it's operational, often for no additional capital cost. The revenue from royalties is typically free of the operator's costs, providing high-margin cash flow.
• Streaming Agreements: UROY makes an upfront payment to an operator in exchange for the right to purchase a fixed percentage of the future uranium production at a pre-set, low price. This provides significant leverage to a rising uranium spot price.
• Physical Uranium Holdings: The company strategically acquires and holds physical uranium ($\text{U}_3\text{O}_8$) as inventory. This gives shareholders direct exposure to the uranium spot price and acts as a readily sellable asset to capitalize on market opportunities.
• Strategic Investments: UROY also makes direct equity or debt investments in companies involved in uranium exploration, development, and production.

Macroeconomic Impact

UROY's performance is highly sensitive to global macroeconomic policies and energy trends, particularly those favoring nuclear energy:

• Uranium Price Volatility: As a royalty company and physical holder, UROY benefits immensely from increases in the uranium spot and long-term contract prices. Global policies promoting nuclear power, such as the U.S. Nuclear Fuel Security Act (aimed at expanding domestic uranium production) or international endorsements like the Net-Zero Nuclear Industry Pledge at COP 28, directly improve the long-term outlook for uranium prices, which is UROY's primary value driver.
• Geopolitical Factors: Supply disruptions from major producers (e.g., political unrest in Kazakhstan or trade bans on Russian uranium imports) can constrain supply, leading to higher uranium prices that positively impact UROY's portfolio and physical holdings.
• Monetary Policy/Inflation: While royalty companies are somewhat insulated from on-site cost inflation, their ability to acquire new royalties and streams is tied to the availability and cost of capital, which can be influenced by central bank interest rates. However, the royalty model itself acts as a strong hedge against inflation for the existing interests, as revenues typically scale with the underlying commodity price.

Recent Performance and Corporate Developments 📈

UROY's recent financial performance reflects its position as an early-stage royalty company focused on strategic asset accumulation in a re-emerging bull market for uranium.

Q1 2026 Financial Highlights (Period ending July 31, 2025)

• Earnings Surprise: The company recently reported its most recent earnings (Q1 2026), posting an Earnings Per Share (EPS) of $0.01, significantly beating the analyst consensus estimate of $-\$0.01$. This marks a positive inflection point, though profitability remains variable.
• Revenue Growth: The company has reported significant revenue growth year-over-year in recent periods, driven by a combination of sales of physical uranium and initial revenues from its maturing royalty and stream portfolio.
• Financial Strength: UROY's balance sheet remains robust, with a zero total debt-to-equity ratio and a high current ratio, indicating strong liquidity and a substantial buffer to meet short-term obligations and fund future acquisitions.

Strategic Initiatives and Corporate News 🤝

UROY's corporate activity is centered on expanding its portfolio of quality, long-life assets:

• Portfolio Maturation: The company continues to mature its portfolio, which includes interests in world-class projects like the McArthur River and Cigar Lake mines.
• Physical Uranium Strategy: UROY actively manages its physical uranium holdings, purchasing and selling the commodity to capitalize on spot market movements, as evidenced by its past updates on physical uranium purchases.
• At-the-Market (ATM) Program: The company has announced the renewal of an ATM equity program, which provides a flexible method for raising capital to fund new royalty acquisitions without a large, single-instance public offering.

Path to Profitability and Fair Value 🎯

UROY's path to sustained profitability is directly linked to two primary factors: the price of uranium and the volume of production from its core royalty and streaming assets.

• Path to Profitability: As a non-operating company, UROY's operating expenses are low. Sustained profitability will be achieved as a greater number of its world-class projects transition into production (like the potential restart of major mines like McArthur River) at higher uranium prices, converting its non-cash assets into high-margin royalty cash flow. The EPS beat in Q1 2026 suggests the company is moving toward this goal.
• Fair Value: Given its current small-cap status and the fact that many of its assets are developmental (not yet producing cash flow), traditional valuation metrics like P/E ratio are often negative or exceptionally high and not fully indicative of value. However, the company is often valued based on its Net Asset Value (NAV) and its exposure to the underlying commodity. Analysts consider the company to be a strong long-term value proposition because its royalty model gives it perpetual, low-cost exposure to a commodity with a powerful long-term tailwind (global nuclear energy demand).

Analyst Estimates and Ratings 📊

Analyst consensus is currently very favorable, reflecting the company's unique position and the positive outlook for the nuclear sector.

• Consensus Rating: The consensus analyst rating is a "Strong Buy" or "Buy." Recent analyses have placed a high percentage of recommendations in the "Strong Buy" category, suggesting significant positive sentiment among investment banks.
• Price Target: Based on short-term price targets, the average 12-month price target is approximately $4.09 to $4.57 (USD), representing a potential upside of over 20% from the recent trading price. The range of forecasts suggests strong conviction in the stock's appreciation, with some high targets approaching $4.77.

Investor-Focused Takeaway: Is UROY Right for Your Portfolio?

Uranium Royalty Corp. (UROY) offers a unique and compelling way to invest in the rapidly unfolding nuclear energy renaissance. Its pure-play royalty and streaming model provides maximum leverage to the uranium price while shielding investors from the majority of the geological, capital, and operating risks associated with mining. This makes it an ideal choice for investors who are bullish on the long-term structural demand for nuclear fuel.

The company's strong balance sheet, which is essentially debt-free, and its high-quality portfolio of interests in world-class, low-cost assets (like McArthur River and Cigar Lake) position it as a resilient and scalable investment. While it operates in a growth phase, its recent EPS beat suggests that its strategy of accumulating and holding physical uranium, combined with the maturation of its royalty assets, is beginning to generate positive results.

What to Watch in the Near Term: 📈

• Uranium Spot Price: The single most important factor. UROY's valuation and the ability to monetize its physical holdings depend directly on the spot price of U3O8. Watch for any sustained movement above the current spot price levels.
• Mine Restarts and Production Decisions: The official restart announcements and timelines for major, low-cost mines in which UROY holds interests (e.g., McArthur River) will be key catalysts that will transition non-producing assets into cash-flowing royalty streams.
• New Acquisitions: Monitor the deployment of UROY's cash balance and equity program. Successful, accretive acquisitions of new royalties or streams are necessary to drive long-term Net Asset Value (NAV) growth and diversify its revenue base.
• Global Nuclear Policy: Continued government support and regulatory clarity regarding the extension of existing nuclear plants and the construction of new Small Modular Reactors (SMRs) will underpin the long-term contract market and benefit UROY's portfolio.

Recommendation: A Strategic Position in the Uranium Sector

Uranium Royalty Corp. (UROY) is viewed by many analysts as a Strong Buy or Buy, with a consensus average price target generally ranging from $4.09 to $4.57 (USD) based on recent reports, offering significant potential upside from its current price.

The stock is an excellent choice for investors seeking:

• Commodity Price Leverage: Direct exposure to the uranium price without the mining risk.
• High-Quality Assets: A diversified portfolio across the world's best uranium jurisdictions.
• Financial Discipline: A zero-debt balance sheet provides stability in a cyclical industry.

While short-term volatility based on commodity price swings is expected, UROY’s strategic position as a pure-play royalty company, combined with the powerful secular trend of global nuclear energy demand, makes it a core holding for those looking to capitalize on the next major upcycle in the nuclear fuel market.

Cameco Corporation (NYSE: CCJ)

Cameco Corporation (NYSE: CCJ) is one of the world's largest providers of uranium fuel, operating as a fully integrated player in the nuclear fuel cycle. Unlike pure-play miners or royalty companies, Cameco's business spans from high-grade uranium mining and milling to refining, conversion, and strategic involvement in nuclear technology, positioning it as a key enabler of the global nuclear industry.

Business Model and Revenue Streams 📦

Cameco's business model is characterized by vertical integration, long-term contracts, and a focus on Tier-One, low-cost assets, which provides stability and superior margins relative to its peers.

• Uranium Mining & Sales (Uranium Segment): This is the core revenue driver. Cameco owns and operates some of the world's largest, highest-grade uranium mines, notably the McArthur River/Key Lake operation and Cigar Lake (a joint venture). Revenue is generated through the sale of uranium concentrate, primarily via long-term, fixed-commitment contracts with nuclear utilities globally. This contracting strategy provides predictable cash flows, often with market-related price mechanisms that benefit from rising spot prices.
• Fuel Services: This segment provides full-cycle nuclear fuel services, including the refining ofU3O8 into uranium trioxide, and the conversion of it into uranium hexafluoride for light water reactors and uranium dioxide for CANDU reactors. This adds high-value, high-margin, and recurring revenue from utility customers.
• Westinghouse Investment: In 2023, Cameco acquired a 49% strategic interest in Westinghouse Electric Company. This provides equity earnings from a global provider of nuclear plant technologies, products, and services for reactors, giving Cameco a crucial stake in the demand side of the nuclear market, including the deployment of new reactors like SMRs (Small Modular Reactors).

Macroeconomic and Policy Impact

Cameco is a strategic beneficiary of macro trends and government policies favoring energy security and decarbonization:

• Pro-Nuclear Policy Tailwinds: Recent policies, such as the U.S. government partnership for Westinghouse reactor deployment (a multi-billion dollar commitment) and the classification of nuclear power as a strategic clean energy source in the EU and elsewhere, directly translate into long-term demand for Cameco's fuel and services.
• Energy Security and AI Demand: Geopolitical tensions highlighting the need for secure, non-Russian nuclear fuel sources, combined with the explosive, 24/7 baseload power demand from AI data centers, are creating a powerful, durable demand floor for uranium that benefits Cameco's long-term contract pricing.
• Inflation and Costs: As a miner, Cameco is exposed to operational cost inflation. However, its strategy of operating only Tier-One, low-cost, high-grade assets (which reduces tons of ore mined per pound of uranium produced) and securing contracts with market-related pricing helps it mitigate these cost pressures more effectively than lower-grade producers.

Recent Performance and Corporate Developments 📈

Cameco’s recent performance demonstrates its strong market position, though quarterly results can be affected by the timing of contract deliveries and operational factors.

Q3 2025 Financial Highlights: 💰

• Revenue Beat: Total revenue for Q3 2025 was approximately CAD 615 million (approx. $446 million), surpassing analyst forecasts, driven by strong average realized prices in both the Uranium and Fuel Services segments.
• Earnings Miss (Adjusted): Adjusted Earnings Per Share (EPS) of CAD 0.07 (approx. $0.05) missed the Zacks Consensus Estimate. This miss was primarily due to lower-than-anticipated sales volumes in both segments, which was a result of delivery timing and operational challenges.
• Strong Balance Sheet: The company maintains robust liquidity with over CAD 779 million in cash and cash equivalents and a manageable long-term debt of approximately CAD 1.0 billion.
• Westinghouse Contribution: Cameco's share of adjusted EBITDA from its Westinghouse investment was strong at CAD 124 million for the quarter, demonstrating the value of its diversification strategy. The company also received a significant cash distribution in October 2025.

Strategic Initiatives and Mergers: 🤝

• Westinghouse Partnership: The successful integration and strategic alignment of the Westinghouse acquisition in 2023 is the single most important recent development. The subsequent announcement of a U.S. government-backed framework to deploy new Westinghouse reactors (potentially involving tens of billions in investment) is a major, long-term catalyst.
• Production Delays: Cameco revised its 2025 production guidance for the McArthur River mine due to development delays, though this was largely offset by strong production from the Cigar Lake mine. The company has reduced its need for market purchases in the near term.
• Dividend Increase: In a sign of confidence in its improving financial outlook, the company accelerated the increase of its annual dividend to $0.24 per common share for 2025.

Path to Profitability and Fair Value 🎯

Cameco has achieved strong adjusted profitability, with its path to sustained, higher-level earnings centered on production ramp-up and pricing realization.

• Path to Profitability: The company is currently operating under a plan to maximize the value of its long-term contract portfolio by aligning production from its low-cost Tier-One assets with customer demand. As its older, lower-priced contracts expire and are replaced by new contracts negotiated at today's significantly higher market prices, the company's average realized price and margins are expected to increase substantially, leading to a major earnings uplift. The ramp-up of the McArthur River/Key Lake facility to full operational capacity is also key.
• Fair Value: Cameco's valuation is currently high, with a trailing P/E ratio often near 100 and a high Price-to-Sales ratio. This suggests the stock is pricing in a significant portion of its future expected earnings growth. While the stock may appear "expensive" on traditional metrics, analysts argue the premium is justified by its unique vertical integration, its massive, high-quality, long-life reserves, and its direct exposure to the structural growth in nuclear energy demand. The stock is a growth stock in a revitalized sector, which typically commands a higher multiple.

Analyst Estimates and Ratings 📊

Analyst sentiment is overwhelmingly positive, reflecting the company's dominant market position and strong growth catalysts.

• Consensus Rating: The consensus rating from analysts is a "Strong Buy" or "Buy," with a vast majority of firms issuing a "Strong Buy" recommendation.
• Price Target: The average 12-month price target is approximately $100 to $110 (USD), suggesting potential double-digit upside from recent trading levels. Some high-end price targets are set at $140 (CAD), reflecting optimism around the impact of the Westinghouse partnership and higher contract pricing.

Investor-Focused Takeaway: Is CCJ Right for Your Portfolio?

Cameco Corporation (CCJ) is the blue-chip anchor of the uranium sector. It offers investors a unique combination of secure, long-term, high-margin revenue from its integrated fuel services and Tier-One mining operations, now augmented by the strategic growth potential of its Westinghouse stake. For investors seeking stable exposure to the uranium bull market with a high degree of operational control and financial strength, CCJ is arguably the definitive choice. Its high valuation reflects the market's conviction in the long-term, structural re-rating of the nuclear energy sector.

What to Watch in the Near Term: 📈

• Average Realized Price: The key metric to watch. Monitor the average price per pound realized on uranium sales in subsequent quarters. As this number trends toward the current, higher spot price, earnings will accelerate.
• McArthur River/Key Lake Production: Any updates on the successful ramp-up and stabilization of production at this crucial Tier-One mine will directly impact supply and future cash flow.
• Westinghouse Updates: Look for new reactor build announcements or major contracts secured by Westinghouse, particularly in the SMR space, as these directly translate into future equity earnings and demand for Cameco's fuel.

Recommendation:

Cameco (CCJ) is highly recommended as a core holding in any portfolio seeking exposure to the global energy transition. While its high P/E ratio suggests a lack of "value" in the traditional sense, its position as a strategic, integrated producer with massive, low-cost resource endowments and unassailable political and commercial standing justifies the premium. The stock is a Buy for long-term investors focused on capitalizing on the structural recovery of the nuclear fuel cycle.

Final Take: Two Core Uranium Stocks for the Next Nuclear Supercycle

Whether you’re looking for maximum upside to uranium prices or a blue-chip anchor in the global energy transition, Uranium Royalty Corp. (UROY) and Cameco (CCJ) offer investors two compelling but complementary paths to profit from the nuclear renaissance.

One delivers unmatched leverage to uranium's price surge without mining risk.
The other is the world’s most strategic, vertically integrated uranium fuel supplier.

🟡 Uranium Royalty Corp. (UROY) – Pure-Play Leverage Without the Shovel
✔ Royalty/streaming model tied to Tier-One assets like McArthur River
✔ Direct exposure to physical uranium and rising spot prices
✔ Debt-free balance sheet with strong analyst upside targets
➤ Best for: Investors seeking asymmetric upside from uranium price gains — with minimal operational risk.

🔵 Cameco Corporation (CCJ) – The Blue-Chip Backbone of Nuclear Energy
✔ Vertically integrated model spanning mining to reactor tech (via Westinghouse)
✔ Massive low-cost reserves and long-term utility contracts
✔ Riding structural demand from AI, SMRs, and energy security policies
➤ Best for: Long-term investors seeking a stable, high-quality uranium stock tied to the global clean energy transition.

Investor Insight:

📈 Want pure uranium upside without the mining risk? → UROY
​ 🔋 Want a premium, scalable uranium producer with strategic global reach? → CCJ

Both are poised to thrive as the world embraces nuclear energy for clean, 24/7 power in an AI-driven future — making them two of the smartest ways to ride the next uranium supercycle.

​
Happy Trading
​— Team Premium Stock Alerts