UEX Corp T.UEX

RE:Cameco temporarily shuts down Cigar Lake uranium mine amid

[MegaMAxTZ]

Let us think about this for a moment - Cigar Lake temporarily shut down for a few weeks. Do not believe this as it will be much longer. Would not be surprised if Cigar is shut down well into 2021.

As written in previous notes, CCJ  LT contracts written over 10 years ago are close to the end. Written at much higher prices as we know - as in $ 70+/LB possibly.

Why on earth would Cameco now sign new LT at current low prices of below $ 40/LB ? Do not believe they would or should.

How many LBS can Cameco and others buy on the Spot market below $ 40/LB - that is the question and THAT is the line in the sand for Cigar Lake to be fired up again.

Businesses must make a profit to survive - these are not charities. Nuclear Utilities that CCJ and others supply should be more aggressive and should propose LT at $ 48/LB. Cameco says No we want $ 68/LB LT. Back to Utilities who offer $ 54.50/LB. Cameco says No we want a  price of  $ 64.80/LB. Back to Utilities offering $ 58.50/LB. Cameco No we want $ 64.40/LB LT firm or have a nice day.

Both sides being stubborn is how we will blow past these Rational levels and hit $ 100/LB - maybe $ 150/LB for a short period of time. Some Utility suckers will have to sign at $ 88/LB once again.

And some swamp rats are suggesting to bail on UEX at $ 0.25 per. Will stay polite at this point but truly some folks are not too bright. As in drinking Fish tank chemicals to save themselves. Give me a break but the whole herd cannot be saved I suppose.

MM