UEX Corp T.UEX

UEX Updated Long Term Uranium Price Rise on Website

[MegaMAxTZ]

As Destinator says, UEX is one of the only Uranium companies that posts Uranium Long Term price on their website. And it has just been updated upwards. :) Now if anybody believes that they can buy 500,000 or 1,000,000 LBS of Uranium for $ 31.50/LB, think again, but I could be wrong. What does long term pricing really mean anyway. Contract price is the main number and these are always private between Uranium producer and Nuclear Utility.

Do you think the sales guys at Cameco are going to go out to lunch next week with a Utility buyer and talk about $ 31.50/LB for 2022 delivery !! Not a chance.They are talking about $ 70/LB plus or have a nice day and buy forced labour Uranium from the Russians or Kazak's.  

Between now and August 2 of 2028, the world will consume about 1.95 Billion pounds of Uranium - but likely a bit higher because all the new plants under construction now will be operating then. So round up to least 2 Billion LBS. This is consumed NOT produced. 2018 is projected to be 135,000,000 LBS produced. No way 2019 will be much more than 140,000,000 LBS and no way 2020 will be much more than 150,000,000 LBS. Secondary supplies will not keep up so shortfall is already officially underway.

Now further into the future - even if seawater U extraction, fusion and other new technologies come into fruition for electricity it will be 2030 before these can really take hold. And imagine the number of windmills rusting away by 2030 littering the landscape. Millions of more bird deaths. Who pays for wind turbine disposal and what about the carbon footprint to pay for disposal of these things. The ones out at sea will be left to rot and fall into the sea as garbage. Any heavy metals in these wind turbines - you bet and these will go into the sea. And solar panels - what about cleaning them over time. Must use water and chemicals to clean a solar panel. Water is a finite resource especially in CA and AZ.  So nuclear is good out to August 2 of 2038. Another 2.2+ Billion LBS of Uranium or more.

McCarthur River when it starts back is done by 2030. Cigar Lake done by 2030. Fission and Nexgen if they get built and run are done by 2035. Kazakh's who likely over blow what they have in the ground are on fumes by 2030. Olympic Dam might have but a boatload of Copper will need to be mined for the residual Uranium from Australia.

So we have the rest including UEX with Shea & Christie Lake. I think it is guaranteed with the pretty close infrastructure of MR and Cigar that the UEX Christie will be mined. After all Cameco owns over 15 % of UEX which will own 70 % of Christie by then. 

200,000,000 LBS at an average of $ 50/LB is $ 10 Billion Dollars. 70 % UEX ownership is $ 7 Billion and Cameco owns 15 % so UEX portion is $ 5.95 Billion. Divide by about 383 Million shares outstanding and we have $ 15.45 per UEX share. Add Shea, add CoeX value and the others and put the Uranium price at $ 100 per LB vs $ 50 per LB............ But I could be wrong.

And we are worried about $ 0.22 or $ 0.24 per right now !!! Time is the answer and those in the know, know very well what happened to UEX in the last run. Keeping the cards close to the vest is what I think they are doing keeping the share price artificially low. Be patient and going to be a good fall season with CoEX the next chapter. 

MM