RE:Recent article on seeking alphaI've considered the same thing. Say spot suddendly doubles and Cameco has to pay $60 spot to fulfil $45 contracts.
Yes short term Cameco would be in a bind. However a spot at $60 would undoubtedly bullish for CCJ.
Saskachewan has Aborignal groups as among the first the get vaccinated. The plan is to have it done by the end of the 1st quarter at the latest. Could be even earlier.
So will investors look past a bad quarter to better days ahead and buy CCJ? Or will a bad quarter screw CCJ? I don't know that answer. Still I think the longer term implications of a price double in spot is undoubtedly good for CCJ. Any ill effect would be a buying opp.
Also the price "may" double overnight or it may creep up more slowly. If the Price is $45 by the time they can restart Cigar Lake then not too much pain.
I agree the price is likely being held back by this situation.