Source: Tom Armistead of The Energy Report (2/20/14) A supply crisis is looming in the uranium industry, and today's uranium price, stagnant at an eight-year low, will shoot up quickly when restarts of Japanese nuclear power plants bring back demand with a vengeance, David Talbot tells The Energy Report. Talbot, a geologist and senior mining analyst at Dundee Capital Markets, is excited about the potential of Canada's Athabasca Basin, the world's most prolific uranium source. But beyond the pounds in the ground, he sees money to be made in undervalued companies. The Energy Report: David, welcome. Let's start with the big picture: What is the general outlook for uranium in 2014? David Talbot: Thank you, Tom. The long-term outlook on the uranium market remains the same at US$65/pound ($65/lb) U3O8. I think a new reality in the near term has set in. The uranium price has dropped significantly and now appears stable at levels not seen for almost eight years. We believe much of this has to do with the lagging Japanese restarts, cash-strapped sellers impacting the market and probably most important, near-term demand is lacking. We do expect uranium prices to rise, and relatively quickly when they do, but for right now, uranium prices will remain leveraged to the news of the Japanese reactor restarts and a return to term contracting by utilities. " Energy Fuels Inc. <href="#quote" target="_blank">is one of our favorite stocks in a low uranium price environment." This thesis underpins our $42/lb price estimate for the year, with prices to about $48/lb by Q4/14. When restarts might occur remains the million-dollar question, perhaps starting mid-2014, but the indicators out of Japan are that the government is committed to bringing its nuclear fleet back online now as the 17th and 18th reactors have applied for their restarts. We've had ongoing reviews. They were expected to take about three to six months, and now we're in month eight. So when they start isn't quite certain, but they are moving in the right direction. Their return should actually coincide with the return in contracting, almost completely absent last year as massive uranium requirements loom. We're seeing about 180 million pounds (180 Mlb) due, expected by the 2016-2018 period.