UEX Corp T.UEX

RE: NYMEX and the 3 Mines Policy

[daniel52]

There is already a very large uranium metal deficiet each year that is only covered by an ever smaller amount from converted nuclear weapons. Cigar Lake which was a huge producer of uranium ore, and expected to provide perhaps 15% of the total expected need, is GONE! Now, add the scores of running reactors which were to be taken off line in Sweden, England, the U.S. and other countries which are now being refurbished to continue for decades if possible. Add to that the scores of new reactors being planned and authorized in China, India, the U.S. , England, even Canada, and other countries. Consider it takes five to 10 years to get a uranium mine into production. OK, if you see a reason for a drop in price as a result of a real increase in actual uranium metal to even meet present and near term needs let me know. As for futures prices, yes maybe the 10 year futures might drop. However, the price of mining stocks is essentially pegged to how much uranium costs now. The need for the metal is going to far outstrip the supply for at least five years based solely on what we know in terms of numbers of reactors to remain on line and those that will come on line. Not only that, but the long term contracts signed years ago at very low prices are ending at an ever increasing rate over the next three years. That means new contracts will be negotiated by more buyers for less available uranium metal. My guess? Prices are going to remain high and that will be reflected in the mining stock prices, especially those in production or nearing production. By the way, add into this the fact that there are only a few uranium processing plants in the world to provide all the additional needed metal and somebody is going to have a real problem getting enough product to keep the lights on.