OTCQB:UEXCF - Post by User
Post by
MegaMAxTZon Jul 20, 2020 9:43am
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Post# 31289809
What if Kazatomprom is Closed until January 2021.
What if Kazatomprom is Closed until January 2021.I was sipping my morning coffee as my 2 Nuclear Power Plants are humming along eating many many LBS of Uranium each and every day. This kind of caught my eye as 40 % of the world's Uranium comes from Kazakhstan. Must dig a little deeper.
Thus mining in K could be closed until January of 2021 which is still winter. They normally drill for new ISR mines in summer/fall because when it gets very cold, very difficult to drill for new wells.
So IF the country is shut down til January of 2021 due to the China virus or this new flu that could be worse, then that means they are really shut down until Spring of 2021.
Yes Kazatomprom have inventory to supply contracts, but inventory out until May of 2021 ? To supply 40 % of the world's Uranium requirement which by latest calculations - using world consumption of 185,000,000 LBS/YR - then that means from July 2020 until May of 2021 they will need to have in inventory about 74,000,000 LBS . No friggin way they have almost 75,000,000 LBS of U ready to go or in processing to go.. That is 1785 Full Shipping containers worth. No way.
They will have to buy some LBS on Spot. And what about Cameco also having to buy on Spot because no way is MRiver AND Cigar Lake opening up before late 2020 at the earliest.
So no way the world Spot U inventory has that many LBS ready to go. Or does it ? Do not believe existing Uranium in the various forms above ground can supply that many LBS. So that means that LBS need to come from undergound. But not at these current prices where mines do not make any money......
So I call up my buddies who also run about 5 Nuclear Power Plants in other states and say hey Jimmy, you reading this stuff about Kazatomprom maybe shutting down until next year. Canada shut and now this. You got good U LBS levels til 2022 ? Yah let me check - getting a bit tight - maybe talk to the boss man to get some more LBS ordered before things get worse. Think things may get a lot worse. Remember the cr...pp that happened back in 2006 with Cigar. Yah don't want to go through that again. Must get some LBS.
$ 137/LB .... could be on the low side at next peak. Just sayin.
MM