May 13, 2025: Utilities are busy responding to and evaluating new procurement requests

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1. Spot market firms amid utility demand shift
2. Russia out, Canada in for EU uranium 
3. Niger escalates uranium seizure battle with Orano
4. Denmark backs nuclear
5. SPUT locks in cash, holds the line on uranium 

Sponsored by Purepoint Uranium Group Inc. (TSXV: PTU | OTCQB: PTUUF)
https://purepoint.ca/

Transcript

This week on Uranium Spotlight, the EU looks to ban russian uranium, Niger’s battle with Orano heightens and Denmark backs nuclear

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Spot Market Firms Amid Utility Demand Shift

The uranium spot price closed the week at $70.00 per pound, up $0.90 from the previous week’s close at $69.10. While trading volumes were light, pricing continued to firm, highlighting ongoing tightness in the physical market.

Only four spot transactions were confirmed last week, totaling roughly one million pounds U₃O₈ for the first nine days of May. Two of these were for prompt delivery, while the rest reflect a growing interest in the 7-to-12-month window. In fact, pricing for delivery later this year—especially December into early 2026—has firmed into the low-$70s.

The current market dynamic appears to be a pause in trading activity, not due to a lack of interest, but because utilities are busy responding to and evaluating new procurement requests. Several recent RFPs—some calling for mid-term and even longer-term delivery—are now in play, and market participants are waiting on the results.

This isn’t just a short-term flurry. We're seeing stronger interest from utilities for both U₃O₈ and UF₆, spanning delivery timelines from August this year into 2029. That demand has put upward pressure on bids and offers across all delivery points, with ConverDyn and Orano reaching $71.00 for near-term material.

So while the spot market may appear quiet on the surface, the underlying tone is increasingly bullish—driven by more active procurement and tighter availability. For uranium equity investors, this tightening is a clear signal that market fundamentals remain supportive—and may be strengthening.

Is this just the beginning of a broader price move? We'll be watching closely.

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Russia Out, Canada In for EU Uranium

The European Union is moving ahead with plans to ban all Russian energy imports—including uranium and nuclear fuel. According to a European Commission press release last Monday, this sweeping move would eliminate Russian involvement across the entire nuclear fuel cycle, from mined uranium oxide to fabricated nuclear fuel.

Last year, 23% of the EU’s uranium supply came from Russia. Cutting that off will force twelve EU countries—home to 103 nuclear reactors—to secure alternative sources. For context, those 103 reactors represent nearly a quarter of the world’s operating fleet and provide about 25% of the EU’s total electricity. In countries like France, nuclear accounts for closer to 65%—and at times, even 70%—of total power generation.

Not surprisingly, opposition has come from EU members aligned with Moscow. Hungary’s Viktor Orbán called the plan “an attack on Hungary,” warning of higher energy prices. Slovakia’s Robert Fico went further, calling it “economic suicide.” Still, both leaders acknowledge they likely can’t block the measure—if it wins a majority vote across EU states, it moves forward.

The bigger issue now: where does Europe turn for uranium? Not Niger—once a key supplier—where a recent military coup has disrupted exports. Not Kazakhstan either, despite being the world’s largest uranium producer. Roughly 90% of Kazatomprom’s output is already committed to long-term deals with China and Russia.

Australia, despite holding the world’s largest uranium reserves, can’t easily fill the gap. Uranium mining remains banned in six of its eight states. Namibia, another major player, is drifting politically toward Russia and China. Chinese firms already operate several mines there, and recent deals with Moscow only deepen those ties.

With no domestic uranium production to fall back on, the EU’s best hope lies with Canada—the world’s second-largest uranium producer. But that’s easier said than done. Demand from utilities worldwide is already converging on Canada’s Athabasca Basin, one of the richest uranium regions on Earth. And supply from that basin may be insufficient to meet a flood of new demand.

For uranium investors, this is a critical development. The geopolitical reshuffling of supply chains is tightening an already constrained market—and placing even more strategic value on secure, politically stable uranium sources.

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Niger Escalates Uranium Seizure Battle with Orano

Continuing our coverage of developments in Niger and their impact on the uranium sector—this week, government forces reportedly raided the offices of French uranium producer Orano’s subsidiaries in the country.

Since the 2023 military coup, Niger’s ruling junta has moved aggressively to wrest control of uranium production from Orano. The first blow came when they blocked uranium exports from the SOMAIR mine, leaving an estimated $300 million worth of material stranded on site. Even attempts to airlift the uranium or reroute it through Benin were rejected, ostensibly due to “security concerns.”

Next, the government seized Orano’s IMOURAREN project, accusing the company of failing to restart the mine swiftly enough. This was followed by the nationalization of SOMAIR itself—previously still operational—and efforts are now underway to sell the asset to new partners from Turkey, Russia, or China.

This week’s raids targeted Orano’s SOMAIR and Cominak subsidiaries—Cominak being a decommissioned site—as well as the company’s overarching Niger office, Orano Mining Niger. Equipment was reportedly seized, and Orano has lost contact with its in-country representative.

With Orano now escalating the matter to international courts, investors are left weighing the implications. Legal action may offer a formal route, but enforcement is difficult when dealing with an unpredictable and authoritarian regime. As the junta tightens its grip on Niger’s uranium assets, the broader question for the West—and for uranium markets—is how to safeguard supply chains in politically unstable jurisdictions.

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Denmark Backs Nuclear

All three major political parties in Denmark have now signaled support for overturning the country’s longstanding ban on nuclear energy. This shift follows a significant announcement from a major Danish investment fund, which plans to raise €350 million specifically for nuclear energy and the broader nuclear fuel cycle—an investment signal that clearly caught the attention of policymakers.

Two right-leaning parties were the first to publicly back lifting the ban, and this week the Danish Prime Minister added her voice, stating that nuclear power is a better alternative for Europe than continued reliance on Russian natural gas. As she put it, Denmark should take concrete steps toward repealing its nuclear prohibition.

There are still some differences in how the parties frame their support. The Prime Minister’s Liberal Party emphasizes nuclear as a strategic energy alternative to Russian gas. The center-right Moderates say they still slightly prefer wind and solar but recognize nuclear could play an important role in a diversified energy mix. Meanwhile, the Venstre party, further to the right, has gone a step further, calling for the removal of all barriers to nuclear research and development in Denmark.

The political momentum now strongly favors a repeal of the ban, which would open the door to nuclear development in a country that has long opposed it. While timelines for building and commissioning reactors remain uncertain, the policy shift alone reflects growing European alignment around nuclear energy—an important signal for uranium investors watching demand-side developments.

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SPUT Locks In Cash, Holds the Line on Uranium

Sprott Physical Uranium Trust ( or SPUT) has just raised $25.55 million U.S. through a non-brokered private placement. That may sound modest by fund standards, but it’s a meaningful move when you're holding one of the world’s largest private stashes of uranium.

SPUT now sits on 66.2 million pounds of U₃O₈. To put that in perspective, the United States consumes around 45 million pounds of uranium annually to fuel its nuclear reactors. So SPUT alone is warehousing the equivalent of nearly a year and a half of total U.S. demand—and they’ve been crystal clear: not a single pound has been sold or loaned out since inception in 2021.

CEO John Ciampaglia reaffirmed their strategy, emphasizing that SPUT is not a trading vehicle—it's a buy-and-hold physical fund. This latest raise is simply to fund operations, not uranium purchases, but it underscores their commitment to holding the line. In fact, Sprott Asset Management participated in the placement themselves.

Post-financing, SPUT holds $31.4 million in net cash and boasts a net asset value of $4.64 billion. Their uranium is securely stored across Canada, the U.S., and France.

For uranium equity investors, SPUT remains one of the most transparent indicators of long-term conviction in physical uranium—and a barometer for broader market sentiment. This isn’t speculative trading. It’s strategic hoarding—and it continues to tighten the tradable supply in a market that’s already structurally short.