In its review for the March quarter, Resource Capital Research said the impact of the Fukushima accident in March last year on the sector had been factored in and the market was tipped to be broadly in balance for the next 12 to 18 months.

“Buying opportunities continue to emerge driven by perceptions of a floor to the uranium spot price holding at around $US50 per pound and strong strategic investor support and acquisition activity at the large end of the market,” RCR said.

The report said mid to long term fundamentals appear positive with over 80 new nuclear reactors expected to be commissioned globally by 2017 and 61 currently under construction.

However, it also warned that while the sector had stabilised, there remained uncertainty over when Japan would restart its nuclear reactors with only one of its 54 reactors currently operating and the remainder undergoing maintenance or safety reviews.

Meanwhile, the report revealed uranium stocks have staged a comeback in the past six months with the Merrill Lynch Uranium Equity Index up 37% since hitting a low in October.

On the price front, the report said the uranium spot price was expected to remain stable for the next 12 to 18 months.

The spot market has been trading in the range of $US51 – 53/lb over the past six months and is currently trading at $51/lb.

The long term contract uranium price is $60/lb down from $62.50/lb in November.