Long-Term Uranium Price Hits 18-Year High as Uranium Energy Ploughs Ahead With Wyoming Drilling
04.07.2026 - 01:31:55 | boerse-global.de
Uranium Energy Corp caught a bid on Friday, with its stock climbing 3.36% to €9.70, as a closely watched industry benchmark pushed uranium contract pricing to levels not seen since the mid-2000s. The move came as the company simultaneously kicked off its second major drilling campaign of the year in Wyoming, underscoring a deliberate strategy to build operational capacity even as equity markets remain nervous.
TradeTech’s monthly Long-Term Uranium Price Indicator rose to $97 per pound of uranium oxide as of June 30, a $2 increase from the previous month and $10 higher than at the end of 2025. According to the industry data provider, that marks the highest level for long-term uranium contracts in more than 18 years. The climb reflects a fundamental shift in sentiment around nuclear power, with rising electricity demand pushing utilities to lock in long-term supply deals.
The price jump is especially consequential for Uranium Energy. The company operates a strictly unhedged business model — it holds its uranium inventory and does not forward-sell production, meaning every dollar of spot or term price appreciation flows directly to the bottom line. That leverage works both ways; the stock has been under heavy pressure in recent weeks, shedding more than 20% over the past 30 days and roughly 13% year-to-date. Friday’s advance still left the shares about 44% below the 52-week high of €17.34 touched in January, though on a 12-month basis the stock remains up more than 70%.
Sweetwater Drilling Targets Third Wellfield
Even as the share price retreated, Uranium Energy pressed ahead with field development. In July the company launched a 200-borehole exploration and delineation program at the Sweetwater complex in Wyoming, aimed at preparing a third in-situ recovery (ISR) wellfield. The facility, acquired from Rio Tinto in December 2024, is being evaluated for both conventional mining and ISR operations. The company is also installing ion-exchange vessels for the ISR circuit, positioning Sweetwater as a central processing hub for multiple satellite projects in the region under a hub-and-spoke model.
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The new program follows a first 200-drill-hole campaign completed in May. Together, the two rounds of drilling signal that management is betting the long-term price strength is durable enough to justify expanding capacity beyond the two ISR plants already operating in Texas and Wyoming.
U.S. Output Triples but Supply Gap Persists
A July 2 report from the U.S. Energy Information Administration underscored the scale of the challenge facing domestic uranium producers. American uranium output more than tripled over the past year, reaching roughly 2.1 million pounds of uranium oxide — the highest level since 2016. Exploration drilling jumped 66% and exceeded one million feet for the first time in years. Yet even that surge is insufficient to meet the fuel needs of America’s reactor fleet, leaving a structural supply deficit that long-term contract prices are beginning to reflect. The spot uranium price stood at $85.70 per pound on July 2, while term pricing has been trending higher.
Debt-Free Balance Sheet Buys Time
Uranium Energy’s financial strength gives it room to execute its expansion plans without the pressure to sell into a weak spot market. The company holds roughly $794 million in cash and equivalents and an additional $24 million in uranium inventories and equity stakes, bringing total accessible liquidity to about $818 million — all with no debt. That war chest allows it to maintain its unhedged stance and to continue developing projects such as the newly commissioned Burke Hollow ISR plant in South Texas, which it calls the largest greenfield ISR project in the country, and the Christensen Ranch site in Wyoming, where three new wellhouses have been permitted for capacity expansion.
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The next milestone for investors comes on July 23, when Uranium Energy holds its annual general meeting. Management is expected to provide further details on the Sweetwater ramp-up and the pace of production growth at the company’s two operating ISR facilities. The question hanging over the stock is whether the rising long-term contract price can translate into a sustainable turnaround in earnings — and in the share price — before the 30-day slide deepens.
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