The Company does not operate mines, develop projects or conduct exploration. The Company's business model is focused on managing and growing its portfolio of uranium interests. The Company believes that the advantages of this business model include the following:
- Lower Volatility Through Diversification. By investing in diversified uranium interests across a spectrum of geographies, the Company reduces its dependency on any one asset, project, location or counterparty.
- Exposure to Uranium Price Optionality without Project Costs and Overhead. The Company believes that its model provides exposure to any future improvements in the uranium market, while at the same time minimizing fixed operating, exploration, development and sustaining costs associated with directly owning and operating uranium projects. Additionally, as the Company's interests are non-operational, the Company is not required to satisfy cash calls in order to maintain its interests in such projects.
- Focus and Scalability. As the Company's directors and officers do not handle operational decisions and tasks relating to uranium projects, they are free to focus their time and energy on carrying out the Company's acquisition strategy and identifying and executing on growth opportunities. As such, URC's business model allows it to acquire and manage more uranium interests than an operating company can effectively manage.
The table below provides a comparison of royalty companies, mining companies, exchange traded funds and funds that hold physical uranium.
|Royalty Companies vs. Operators||URC||Operating Companies||Uranium ETF||Physical Funds|
|Exposure to Uranium Price|
|Fixed Operating Cost|
|No Development or Sustaining Capital Costs|
|Exploration & Expansion Upside Without the Associated Costs|
|Diversified Asset Portfolio|
|Ability to Grow Without Increased Management|