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Jan. 30, 2026 08:41AM PST
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Uranium prices surged back above US$100 a pound this week, extending a year-long rally that is reshaping the uranium market after more than a decade of underinvestment.
Spot price of uranium climbed US$7.75 to US$101 a pound after the Sprott Physical Uranium Trust (TSX:U.U,OTCQX:SRUUF,OTCQX:SRUUF) disclosed it had purchased 500,000 pounds of uranium and raised US$214 million through a share issuance, lifting its available cash to US$323 million.
Expectations that the fund will deploy that capital rapidly into further uranium purchases helped push prices back above the psychologically important US$100 mark, a level not consistently seen since 2007.
“Sprott has now built a pretty serious war chest to buy some pounds, so it’s come into this year preloaded with cash,” Guy Keller, portfolio manager of Tribeca’s Nuclear Energy Opportunities Strategy, told the Australian Financial Review.
“We’ve now entered a new range for the spot price and I think it’s safe to say that US$100 a pound is a new floor which should hold for the next 12 months and the next question is, where does it stop?”
Spot prices catch up to contract reality
Spot uranium one-year price performance.
Chart via Trading Economics
While the move above US$100 grabbed headlines, there have already been previous remarks that claimed uranium has already been trading at triple-digit prices away from public benchmarks.
Earlier this January, Cameco (TSX:CCO,NYSE:CCJ) president and chief operating officer Grant Isaac told the Goldman Sachs Energy, CleanTech & Utilities Conference that most new uranium contracts already imply prices well above published spot levels.
“We’ve had market-related contracts with floors, escalated floors in the mid-70s. We’ve had ceilings as high as US$150 escalated,” Isaac said. “The midpoint between those floors and the ceilings are already US$100 uranium, US$115 uranium.”
Isaac said around 70 percent of uranium contracting last year occurred through market-related agreements that are not fully reflected in reported benchmarks. This meant that utilities are already budgeting for significantly higher prices than spot data suggests.
He also warned that conventional demand forecasts materially understate future uranium needs, as they exclude reactors that have not yet reached final investment decision.
“The demand forecast that most have out there… we believe they’re actually understating demand,” he said, pointing to new build programs in the US, Eastern Europe and Asia, as well as rising electricity demand from data centers and artificial intelligence infrastructure.
Sovereign contracting is also returning as a market force. Isaac referenced reports from last year that Canada and India are close to finalizing a 10-year uranium supply agreement with Cameco worth US$2.8 billion.
Supply deficit setting up a “breakout year”
The price rally also supports growing consensus that uranium supply cannot respond quickly enough to rising demand.
A research report published this week by Teniz Capital said the global uranium market has entered a structural deficit phase that cannot be resolved within the next decade.
The firm argued that the long lead times required to bring new uranium projects into production—often 10 to 20 years from discovery to first output—mean that supply shortages expected in the 2030s are already effectively locked in.
“The supply deficit in the 2030s is already programmed,” the report said, describing the current market as having reached a “tipping point” where utilities that fail to secure long-term contracts today risk facing acute shortages later in the decade.
The report estimates global uranium demand to rise by about 28 percent by 2030 and more than double by 2040, driven by reactor construction in China and India, renewed Western support for nuclear power, and rapidly rising electricity demand from data centers and AI infrastructure.
David Franklyn, portfolio manager at Argonaut, also believes uranium could be heading for a “breakout year”.
“We believe the demand-supply balance has continued to improve with most major global economies now looking for nuclear power to be a component of their base load power mix,” Franklyn remarked.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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Investor Insight
Generation Uranium offers investors high-leverage exposure to a potential major discovery in Canada’s underexplored and resource-rich Thelon Basin, led by a management team with a proven track record of securing high-value exits.
Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.
The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
- Low-Cost, Rapid Exploration Strategy: By leveraging modern geophysics and extensive historical data, the company aims for a "short road to discovery," de-risking projects quickly to maximize shareholder value.
- Bullish Market Fundamentals: Generation Uranium is well-positioned to meet the growing global demand for carbon-free nuclear power, supported by a projected supply deficit and increased interest from major tech companies seeking clean energy.
Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.
The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
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