“Things are moving in the right direction. But it’s still very early stage, so I think there’s quite a bit further to go,” Robert Gill, a portfolio manager at Lincluden Investment Management, said in the Financial Post article.
Uranium prices still remain below the marginal cost of production, which industry experts calculate at around $65 to $70 per pound.
However, supply could be a issue in the mid-term. Industry observers believe demand could outstrip supply by around 2017. According to the World Nuclear Association, there are 71 new reactors under construction worldwide, with 27 in China. Additionally, the U.S.-Russia nuclear disarmament agreement has come to an end, removing another source of uranium supply from the market.
Global X Uranium ETF
For more information on the uranium industry, visit our uranium category.
Max Chen contributed to this article.