http://www.barrons.com/articles/uranium-why-it-can-rally-back-to-...

http://www.barrons.com/articles/uranium-why-it-can-rally-back-to-70-1498728222

Uranium prices may be trading around $20.50 a pound, the highest level in a month, but there is little to celebrate given the nuclear fuel is trading at a fraction of the $150 a pound it fetched in 2007.

But RBC Capital Markets has given some hope for uranium bulls that better days are ahead in its third quarter mining and metals outlook. While the short term looks tough, production deficits could boost prices over coming years:
We forecast uranium prices will increase significantly through our forecast period due to cost curve economics, declining contract coverage, and required incentive price for new mine supply. Near-term, we think prices are relatively range-bound near $20-25/lb U3O8 in 2017- 2018. As cost curve economics take effect and contract coverage declines in 2019-2021, we forecast an increase to $30-40/lb. Post-2021, we believe the market should move towards a deficit and new mine supply may be required, resulting in uranium prices at $50/lb in 2022, $60/lb in 2023-2025 and $70/lb in 2026-2028. Longer-term, we forecast $65/lb based on the marginal cost of production.
The past decade has been a struggle for uranium producers as the disaster at Fukushima took Japanese reactors offline and dulled the appeal of nuclear energy. However, China is committed to developing more nuclear energy to combat pollution.

Low prices have weighed on the shares of big producers, with Canada's Cameco (CCO.CA) (CCJ) down around 30% from its January highs and Energy Resources of Australia (ERA.AU) is down nearly 40% from its February highs.
However, the very modest bounce in uranium prices recently has lifted shares in Uranium Participation Corp. (U.CA) by around 7% this month.