The Sprott Physical Uranium Trust (TSX: U.U for USD; U.UN for CAD), the world’s largest holder of physical uranium is hitting the ground running in 2026 after it bought 100,000 lb. of the energy metal on Friday, bringing its total holdings to about 74.9 million pounds.
The market value of its uranium totals $6.13 billion.
Last year, the Trust’s uranium oxide (U3O8) purchases totaled 8.67 million lb., almost tripling over the 3.06 million lb. it bought in 2024, and more than doubling the 3.89 million lb. purchased in 2023, BMO Capital Markets analyst Helen Amos said in a note on Monday.
Sprott’s fourth quarter purchases last year came to 2.86 million lb., the second highest since the second quarter of 2022.
Spot price rise
Meanwhile, the spot uranium price gained about 0.6% day over day to $82 per lb. on Monday, its highest level since the end of October.
The spot price booked a 12% rise over 2025, ending the year at $81.55 per pound.
Last October, Sprott forecast that prices could continue to rise based on the United States government’s pro-nuclear policy, rising demand for the nuclear fuel, and concerns around supply.
Another strong year?
The Trust’s purchases and the price gains might herald another year of tailwinds for nuclear energy as governments prioritize nuclear development while demand for energy from nuclear rises as tech companies move to build more power-hungry data centres for AI applications.
Just over two weeks ago, Ontario and New York state signed an agreement on nuclear power cooperation. Under the memorandum of understanding, the respective power authorities are to share expertise on advanced technology, explore the expansion of electricity trade between Ontario and New York and identify potential joint projects.
Global demand for uranium is projected to more than double to 391 million lb. by 2040, revealing the need to develop mines, according to World Nuclear Association data. Uranium demand already outpaces production by 50 million to 60 million lb. a year.
While nuclear industry purchases of uranium were significantly delayed last year due to uncertainty in the market, but that uncertainty was beginning to fade by December, Sprott Asset Management CEO John Ciampaglia said in an interview just before Christmas.
“We believe that a significant portion of that demand will be deferred to next year,” he said. “That should help with pricing and send new messages and signals to the marketplace. Producers are still in a supply discipline mode. They’re no longer interested in selling uranium at low prices to utilities.”
Sprott shares were down almost 1% to $19.67 apiece on Monday morning in Toronto, valuing the company at $8.3 billion. The stock has traded in a 12-month range of $12.65 to $20.60.
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