Globe editors have posted this research report with permission of Cantor Fitzgerald Inc. This should not be construed as an endorsement of the report’s recommendations. For more on The Globe’s disclaimers please read here. The following is excerpted from the report:
We have long pointed to 2014 as the kick off year for uranium prices to return and for the commodity to retake its position in the spotlight. While uranium equities have shown some strength over the last quarter of 2013, we believe there is significant upside remaining as the spot price is below the current marginal cost of production and significantly below the minimum incentive price for future supply to match future uranium demand.
While uranium prices are currently low due to excess uranium inventories stemming from material earmarked for Japan’s 50 reactors not being consumed over the last three years, we believe prices are set for a violent move higher as Japan is set to restart some reactors this year (we forecast 12 to restart in 2014). Moreover, despite the negative headlines of anti-uranium sentiment we continue to highlight that there are more reactors under construction, planned, and proposed now (556) than since before Fukushima (541).
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