After five years of oversupply, the tipping point for uranium prices to improve remains difficult to predict, Bank of Montreal Capital Markets research analyst for diversified commodities, uranium and diamonds Edward Sterck said during a recent telephone conference.
According to him, the incentive price for new uranium projects to start has for the last decade been around the $60 to $70/lb level, including a minimum 14% return on capital deployed; however, significant weakness in producer currencies had resulted in that incentive price falling closer to about $50/lb or lower.
