Uranium is getting its second wind. With global energy policy tilting firmly toward nuclear, investor demand climbing, and supply still limping from years of underinvestment, bullish voices are getting louder.
Sprott, the world’s largest uranium-focused investor, has reaffirmed its optimistic stance, predicting long-term price appreciation and flagging demand growth that UBS says has fundamentally shifted. "Sprott estimates demand has gone from around 0%t per annum five years ago to 3–4% per annum going forward," UBS wrote in a recent note, citing government policy shifts in the US, Europe, and China as key catalysts.
China continues to dominate in reactor buildouts, but the US has seen renewed political support and legislative funding for nuclear energy, while Europe—long considered hostile to the sector—is walking back its phase-out plans.
While demand accelerates, supply remains stubbornly constrained. Sprott highlighted that a decade of underinvestment has left the sector short on new projects, with greenfield developments stuck in permitting bottlenecks and restarts facing delays.
UBS views the structural tightness as a critical driver. The current spot price of uranium, hovering around $70 per pound, is where it was before the 2011 Fukushima disaster. Adjusted for inflation, Sprott estimates it should be closer to $110. Their base case? At least $80 per pound over the long term is needed to lure capital back into development.
That development is slow to come, but not nonexistent. In Canada’s prolific Athabasca Basin, several exploration companies are positioning themselves to meet future demand.
Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) is among them, holding over 230,000 acres across multiple targets in Saskatchewan. The company’s Davidson River Project sits near existing discoveries but remains largely underexplored. Its focus on high-grade basement- and unconformity-hosted uranium has drawn attention in a region known for world-class deposits.
Baselode Energy Corp (TSX-V:FIND, OTCQB:BSENF) is also drilling aggressively, with its flagship ACKIO discovery yielding shallow, high-grade mineralization. Baselode is in the process of merging with Forum Energy Metals, forming Geiger Energy Corporation, a move that consolidates efforts across a large land base and underpins the firm’s “Athabasca 2.0” exploration strategy.
Others are looking to diversify North America’s uranium supply beyond Canada. Uranium American Resources Inc. (OTC:UARI), which recently acquired JAG Minerals, is advancing a portfolio of US-based projects in Utah, Wyoming, and Colorado. The company is part of a broader movement to revive domestic uranium mining and reduce reliance on foreign sources, particularly as geopolitical tensions persist.
Meanwhile, Lancaster Resources Inc (CSE:LCR, OTCQB:LANRF) is building a clean energy strategy that pairs lithium and uranium development. Its Catley Lake Project, also in the Athabasca Basin, is part of a longer-term bet on the energy transition.
Across the Atlantic, GoviEx Uranium Inc (TSX-V:GXU, OTCQB:GVXXF) is looking to become a cornerstone supplier for the global nuclear fuel market. The firm’s Muntanga Project in Zambia is nearing production, with two additional African properties, Madaouela in Niger and Falea in Mali, offering future growth optionality.
For now, the market remains tight. The Sprott Physical Uranium Trust (SPUT) continues to soak up available supply, with its buy-only model and recent $200 million bought deal giving it the capacity to purchase more pounds in the near term. UBS notes that SPUT is well within its 2025 ceiling of 9 million pounds and has no plans to sell any of its holdings. Only fund liquidity, they say, could trigger that.
UBS sees the upcoming World Nuclear Association Symposium in September as a potential catalyst for fresh contracting activity. Term contracting is still running at only about a third of replacement levels, but new deals, such as a recent 9-million-pound tender out of South Korea and an offtake agreement by Nexgen Energy Ltd (TSX-V:NXE, NYSE:NXE, ASX:NXG) signal a pickup in momentum.
Still, UBS is selective about equities. Its top pick remains Paladin Energy Ltd (ASX:PDN), which it says is “relatively better positioned versus some of its peers that have recently fallen behind.” The firm cautions that while the uranium commodity outlook is compelling, investor enthusiasm has already pushed some shares to lofty valuations.
For explorers and developers still early in the cycle, that could present an opportunity. With long-term prices needing to rise to justify new production, and only a few shovel-ready projects in the pipeline, a well-timed discovery or permitting breakthrough could change fortunes quickly.