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| By Sean Brodrick Reviewed by: Jim Nelson |
The uranium bull market may be getting ready to melt up.
At the New Orleans Investment Conference, I sat down with Scott Melbye, CEO of Uranium Royalty (UROY, “C”) and Executive Vice President of Uranium Energy (UEC, “D-”), to discuss what could be one of the biggest investment opportunities of 2027.
Melbye’s prediction: Uranium prices could surge to $150 a pound next year, a rise of more than 60%. That, in turn, will ignite a powerful rally in uranium miners.
You can hear it right from Melbye himself in this video interview I recorded in New Orleans …
Uranium Demand Ramps Up
The world is embarking on an unprecedented expansion of nuclear power.
Governments are scrambling to secure reliable electricity.
And AI data centers are a potentially enormous new source of demand.
Uranium supplies are struggling to keep up.
And yet, uranium stocks have been under pressure for months.
Melbye believes that disconnect between nuclear power's long-term fundamentals and short-term market sentiment is setting the stage for a major rebound.
A 1.7 Billion-Pound Uranium Shortfall
Melbye sees a nuclear energy industry poised for explosive growth.
His base case calls for global nuclear power capacity to double over the next 20 to 25 years. But he believes a tripling is increasingly possible as countries race to expand their electricity supplies.
Roughly 440 nuclear reactors are already operating worldwide, with another 70 under construction.
The nuclear renaissance is gathering momentum as governments embrace nuclear energy for its reliability, energy security and ability to generate electricity around the clock.
The problem is the world isn't producing nearly enough uranium to support that expansion.
Melbye estimates the cumulative uranium supply deficit could reach a staggering 1.7 billion pounds over the next two decades. That's billion with a B — and it represents an enormous opportunity for companies capable of bringing new uranium production online.
He expects that reality to drive a massive rally in uranium equities in 2027.
Uranium Energy: From Restart to Rapid Growth
One company positioned to benefit is Uranium Energy.
UEC is building one of America's largest domestic uranium production platforms, with operations in Wyoming and Texas and additional development assets.
The company specializes in in-situ recovery, or ISR, which uses circulating solutions to recover uranium from underground deposits without conventional open-pit or underground mining.
The company produced approximately 365,000 pounds of uranium oxide concentrate (U₃O₈), commonly called yellowcake, over roughly 15 months.
Its fiscal 2026 report recorded 359,260 pounds since commissioning through July 31.
Importantly, UEC has worked through regulatory delays that previously slowed production.
The company’s fourth-quarter production increased 157% sequentially to 82,744 pounds, while total production costs declined 33% to $36.54 per pound.
Melbye says UEC is targeting annual production of 4 million to 5 million pounds within the next five years.
That's a dramatic increase from current production levels, although achieving it will require continued investment, permitting and successful execution.
UEC has another potentially enormous growth opportunity.
The company is moving beyond mining uranium into the next stage of the nuclear fuel supply chain.
UEC is developing plans for a massive facility that would convert uranium oxide concentrate — commonly called yellowcake — into uranium hexafluoride (UF₆).
That's the essential feedstock for uranium enrichment, a critical step in producing nuclear reactor fuel.
Working with engineering giant Fluor (FLR, “D+”), UEC envisions a facility capable of processing approximately 10,000 metric tonnes of uranium annually — equivalent to more than half of current U.S. uranium requirements.
The project is advancing through engineering and preliminary regulatory work, with a more detailed cost estimate expected by mid-2027.
Success could transform UEC into America's only vertically integrated uranium company, spanning mining, processing, refining and conversion.
UEC also has the financial firepower to pursue that growth. At the end of fiscal 2026, the company reported $753 million in liquid assets and no debt.
On Nov. 5, the company announced long-term agreements with two major U.S. utilities covering 1.1 million pounds over six years.
Every pound will be sold at prevailing market prices, without fixed-price ceilings.
UEC has maintained an unhedged uranium sales strategy, leaving it exposed to rising market prices.
That could become particularly lucrative if Melbye's $150 uranium forecast proves correct.
Uranium Royalty: A Different Way to Play the Boom
Melbye also leads Uranium Royalty, which offers a different approach to the uranium market.
Rather than operating uranium mines, UROY invests in royalties, streams and other uranium-related assets.
It has a portfolio of 24 uranium properties, including royalty interests in four producing operations and 20 exploration or development properties.
UROY has recently expanded well beyond uranium.
In July, the company completed the Sweetwater acquisition, adding royalty interests in five operating soda ash mines in Wyoming's Green River Basin.
Soda ash is an essential industrial material used in glass manufacturing, detergents and other products.
The acquisition also gave UROY approximately 850,000 acres of surface rights and 4.5 million acres of mineral rights, primarily in Wyoming, Utah and Colorado.
The soda ash operations also have expansion plans that could increase attributable production capacity by more than 60% over the coming years, without requiring substantial additional capital investment from UROY.
UROY already generates some revenue from renewable-energy land uses and sees the potential for additional royalties as projects are developed.
Uranium prices remain volatile, and neither company's growth plans are guaranteed. But these are two different ways to participate in the nuclear renaissance:
- UEC offers direct exposure to expanding American uranium production.
- UROY offers a diversified royalty model with additional income opportunities.
All the best,
Sean Brodrick
