Uranium spot prices climbed back above $100 a pound in January and have remained supported through 2026 as U.S. policy actions and tightening global supply reshape the market, according to Sprott Asset Management's uranium research. Cameco, the world's largest publicly traded uranium producer, has guided for 2026 production of between 19.5 million and 21.5 million pounds across its operations, with its Cigar Lake mine expected to contribute 17.5 million to 18 million pounds of that total.
In mid-January, the U.S. issued a Section 232 proclamation on critical minerals that explicitly named uranium as a national security concern tied to the country's reliance on foreign nuclear fuel supply chains, opening the door to potential price floors or other trade measures. The proclamation followed a separate U.S. Department of Energy commitment of $2.7 billion to rebuild domestic uranium enrichment capacity over the next decade.
On the supply side, Kazakhstan's state uranium company Kazatomprom has tightened control over new exploration and development inside the country, which produces roughly 38% of global uranium supply. The move prompted at least one competing developer, Laramide Resources, to abandon a greenfield exploration project in the country. Separately, Paladin Energy has restarted production at its Langer Heinrich mine in Namibia, and Denison Mines received regulatory approval to begin construction at its Phoenix project, though that mine is not expected to reach production until mid-2028.
Sprott's research noted that utilities have under-contracted uranium supply for 13 consecutive years relative to replacement-level needs, a gap the firm said increases the likelihood utilities will eventually return to the market with larger volumes and fewer suppliers to choose from.
Source: Sprott Asset Management -- https://sprott.com/insights/uranium-enters-2026-with-renewed-strength-and-strategic-tailwinds/