Uranium Energy Signs Spot-Priced Contracts for 1.1 Million Pounds

Uranium Energy (UEC ) announced on November 5, 2026 that its subsidiary UEC US Uranium LLC had signed definitive long-term agreements to supply two U.S. nuclear utilities with a combined 1.1 million pounds of uranium concentrates (U3O8) over six years. Every delivery will be priced at prevailing spot market prices.

The agreements contain no floors, ceilings, discounts or fixed pricing. Their sales revenue will therefore depend on uranium prices when each delivery occurs, not on a price fixed at signing. The utilities were not identified, and no fixed aggregate dollar value was disclosed.

Each contract schedules 100,000 pounds annually. Deliveries under one run from 2027 through 2032, while deliveries under the other run from 2028 through 2032. Together, they commit volumes through 2032 while leaving pricing open throughout the delivery period.

Recent Sales Explain the Pricing Strategy

The contracts extend UEC’s 100% unhedged uranium strategy. In its fiscal 2026 results, UEC reported selling 400,000 pounds from inventory at a weighted average realized price of $93.13 per pound, which it characterized as the highest among publicly traded uranium producers. Those sales generated $37.3 million in revenue and $16.9 million in gross profit for the year ended July 31, 2026.

Executive Vice President Scott Melbye said: “With a widening global supply deficit and continued U.S. reliance on imported uranium, we believe domestic production is becoming increasingly valuable for supply assurance and national security objectives.”

Inventory and Output Frame the Delivery Ramp

UEC reported holding 1.256 million pounds of U3O8 inventory as of July 31, 2026, valued at $109 million at then-current market prices. That quantity exceeded the combined volume in the new utility contracts, although the deliveries are spread through 2032. The inventory figure excluded 359,260 pounds of precipitated uranium and dried and drummed U3O8 at the Irigaray and Hobson central processing plants.

Production is also increasing. UEC reported fiscal 2026 output of 229,294 pounds of precipitated uranium and dried and drummed U3O8. Combined fourth-quarter production at Christensen Ranch and Burke Hollow reached 82,744 pounds, up from 32,195 pounds in the third quarter. That sequential ramp provides the operating backdrop for deliveries scheduled to begin in 2027.

UEC reported a combined fourth-quarter Total Cash Cost per Pound of $30.01 and Total Cost per Pound of $36.54. Both are company-defined non-GAAP measures based on additions to specified inventory components divided by production; the cash measure excludes depreciation, depletion and amortization. These figures describe recent production economics, not the economics of future deliveries at spot prices that have yet to be determined.

The company describes approximately 12 million pounds per year of licensed production capacity across its Wyoming and South Texas platforms, a capacity figure distinct from actual fiscal 2026 output.

The agreements therefore pair a defined delivery schedule with unresolved pricing. Inventory and rising output establish the supply base UEC can draw on, but the financial outcome will depend on both executing deliveries from 2027 onward and the spot prices prevailing when those pounds are sold.