Uranium Prices Seen Soaring 56% to $135/lb, Boosting Denison Mines Outlook
Bank of America projects uranium prices will average $135/lb in H2 2026 into 2027, a 56% gain over current spot levels, driven by energy security, decarbonization and electrification. Structural supply deficits from aging mines and slow new projects, plus $9 billion sequestered in funds, underpin Denison Mines’ outlook.
1. Market Outlook and Denison Mines
Bank of America’s Global Research forecasts uranium prices rising to an average of $135 per pound in the second half of 2026 and into 2027, reflecting a 56% increase over current spot levels. Denison Mines, as a uranium exploration and development company, stands to benefit from stronger price realizations across its asset portfolio.
2. Structural Supply Constraints
Aging mines and lengthy development timelines for new projects have created structural deficits in uranium supply. High-cost in-situ recovery operations and a global sulfur shortage for leaching further constrain incremental production, elevating incentive prices needed for new supply.
3. Utility and Investment Demand
Utilities are reversing decade-long inventory drawdowns by contracting at price points near $100 per pound to rebuild strategic reserves, while extended refueling cycles inflate stealth demand. Approximately $9 billion of uranium is sequestered in closed-ended investment vehicles, removing material from circulation and tightening physical supply.