OTCQB:UEXCF - Post by User
Post by
MegaMAxTZon Apr 09, 2020 12:26pm
96 Views
Post# 30894518
Uranium Sector Like a Twilight Zone Game of Chess
Uranium Sector Like a Twilight Zone Game of ChessWith all these signs now in place - McCarthur River Closed til late 2022 - Cigar Lake likely closed til late 2020 and more likley into 2021 - more CL flooding who knows - Kazak's shut down maybe til late 2020 - maybe later - Olympic Dam is next likely to shut because Copper demand will be way down so no Uranium byproduct produced. Namb/Nig shut down etc etc etc.
Now looks like the Twilight Zone. Must be a few Nuclear Power Plant Utility purchasing guys that saw and witnessed what happended in the Uranium frenzy of 2005 to 2007 - what is going on with them ?? Malcolm what do you think specifically about these Utility guys. They sleeping at the switch ? Or investing.............................................!!!!!!!!!!!!!
Spot is going up and will go through $ 30/LB next week. Do some math on a typical pretty big Nuclear Reactor using a Million LBS/YR. over 10 years.
12 Million LBS at $ 40/LB = $ 480,000,000
12 Million LBS at $ 50/LB = $ 600,000,000 A 120 Million dollar Premium
12 Million LBS at $ 65/LB = $ 780,000,000
12 Million LBS at $ 78/LB = $ 936,000,000 A BIG premium
Why on earth are Nuclear Fuel guys acting like nothing is going on and waiting ???
Prices are going up for sure - they have to and will. These guys need to just sign some deals - or are they now in the back dark rooms signing ???
Many industries have many variations in price per LB of a product. A Million LBS per Year in my world can vary by a lot. Competitors do not yell out and publish what they are paying per LB so Why is Uranium any different ??
Thus many industries are opaque and Uranium is no different. But the writing is on the wall.
So just sign between $ 65 and $ 79/LB for 5-9 years and call it a day. Mines can make some money but not gouge - share prices of most of these U companies rise but not crazy.
Why not in the Twilight Zone.
MM