Diversification through royalty companies

Royalty companies support mining operations financially. In return, they earn money through license fees or shares in the production of the mining operations. And the mining risk lies almost entirely with the mine operators. There is only one royalty company in the uranium sector, namely Uranium Royalty – https://www.commodity-tv.com/play/uranium-royalty-increasing-the-royalty-portfolio-in-2025/ -. The company’s success to date in the royalty and streaming business proves it right. In addition to royalties and streams, the portfolio also includes a large physical uranium holding and shares in uranium companies. And uranium is booming. Uranium has become significantly more expensive since 2021. After all, 31 countries have committed to tripling their nuclear energy capacity by 2050.

But where will the growing demand for uranium come from? The lead times for new uranium production sites are long, and the regulatory procedures in many uranium mining regions are complex and lengthy. And geopolitical challenges and technical difficulties can also stand in the way of sufficient uranium supplies, at least in the medium term. After the uranium price was low for a long time, hardly any investments were made and uranium projects were scaled back. Now, however, massive new investments would be necessary. Many analysts expect a longer-term bull market for uranium.

There are various promising royalty companies in the gold sector, such as Gold Royalty – https://www.commodity-tv.com/play/gold-royalty-ceo-insight-on-the-strong-growth-profile-in-the-coming-years/ -. The company achieved a new record turnover in 2024. The high price of gold is naturally a contributing factor. The price of the precious metal is currently above USD 3,200 per troy ounce. Gold set a new record price just last Friday. The back and forth in US customs policy and the increased expectations of interest rate cuts by the Fed in the near future are further fueling the gold price – good for royalty companies such as Gold Royalty.

Current company information and press releases from Gold Royalty (- https://www.resource-capital.ch/de/unternehmen/gold-royalty-corp/ -) and Uranium Royalty (- https://www.resource-capital.ch/de/unternehmen/uranium-royalty-corp/ -)

In accordance with §34 WpHG, I would like to point out that partners, authors and employees may hold shares in the companies mentioned and that there is therefore a possible conflict of interest. No guarantee for the translation into German. Only the English version of this news is valid.

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