Paladin Energy (ASX:PDN) said term contracting activity is a key factor in shaping the outlook for uranium prices, as nuclear utilities seek long-term supply amid growing demand for clean energy, according to a Wednesday filing with the Australian bourse.

The company noted that utilities have sourced over 90% of their uranium supply via term contracts over the past three years.

While term contract volumes have increased, they remain below replacement levels, with global nuclear utilities facing around 1 billion pounds of uncovered uranium requirements over the next decade.

Shares of the company rose nearly 4% in recent Wednesday trade.