Vivien Diniz reports that so far in 2016, the uranium price has been bumping along around US$34 per pound of U3O8, with utility buying remaining sluggish. As Raymond James highlights in a recent uranium industry update, 2016 could prove to be another year of flat performance, the firm is expecting an average price of US$38 for the year. However, despite the slower market, there are still plenty of reasons to remain bullish on uranium. For one thing, Japan is expected to continue restarting its reactors, with a total of 8 anticipated to come online by the end of the year. Further, China should be bringing an estimated 10 gigawatts online. In light of those events, and due to utilities abnormally high long-term uncovered requirements, Raymond James believes utilities could come back to the market at any time to resume a normal pace of long-term contracting. As such, the firm is calling for a much higher average uranium price of US$50 in 2017.
That positive outlook for uranium means that by extension there is a positive outlook for nuclear power. And indeed, many in the uranium space are optimistic about the role nuclear power will play in the global energy mix in the future. Nuclear energy has low life-cycle greenhouse gas emissions and has the potential, with innovative technologies, to serve humanity effectively for a very long time, IAEA Deputy Director General Mikhail Chudakov said late last year. When considered in the broader context of sustainable development, nuclear power enhances energy security and reduces damage to ecosystems and impacts on human health. That said, there are still some naysayers. One is Morgan Stanley Anthony Ianno, speaking at the Platts Nuclear Conference, he told investors that the economics of nuclear are very challenging. Why? Because when compared to the cost of natural gas, nuclear capital costs five times as much. Ianno believes that makes the case for nuclear power a tough one to make. But their are 6 ways to fund nuclear ...
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