The spot price for uranium is on the road to recovery after nuclear power utilities snapped up stockpiles, Toro Energy Ltd says.

The temporary glut followed the forced redemption sales of uranium held by hedge funds, chairman Ian Gould told the company's annual general meeting in Adelaide on Wednesday.

Dr Gould said the long term fundamentals of the uranium market supported the development of new mines.

"In recent weeks, with this forced selling complete, a shortage of spot uranium combined with lower production forecasts from existing uranium producers has seen the spot price rise more than 20 per cent to $US55 per pound," Dr Gould said.

"This makes uranium one of the few resources commodities to record price gains and perhaps one of the few bright lights on the commodity investment horizon.

"The current long-term price of $US70 per pound is expected to again come under upward pressure as the spot price strengthens, and the supply/demand fundamentals return to their normal influences."

The spot market is small but drives short term market sentiment.

The uranium spot price peaked at $US138/lb in June 2007.

Dr Gould said the number of nuclear power plants worldwide would increase by around 30 per cent within the next ten years. Nuclear power capacity was expected to rise by 85 per cent by 2030.

This would be driven by an increasing requirement to plan for future carbon emission reductions, making nuclear power "the preferred alternative in many developed and developing countries for secure base load power generation".

"The outlook for Toro as a company is strong," he said.

While Toro's recent renounceable rights issue to raise $26 million fell short, Mr Gould said Toro had enough funds to "make significant progress on our projects and in particular the optimisation study at the Wiluna uranium project" in Western Australia.

The rights issue raised $12.2 million after OZ Minerals Ltd took up its full entitlement, lifting its stake to 51.71 per cent.

An OZ Minerals spokesman told AAP last Thursday that the diversified miner had no intention of taking control of the junior uranium explorer.

Toro's shares were down half a cent at 12.5 cents at 1252 AEDT.