RE:RE:RE:RE:RE:RE:RE:changing times At Cameco they have 6 mlbs of uranium. They need 20-30 mlbs to deliver into contracts. So they only have 3 months of contracted supply. They have to go to the market NOW to see if the necessary spot supply is there (they were not in a similar forced buying situation a year ago). If not price will spike and they will be forced to reopen mines again quickly,- if they are allowed to. Opening of societies could take months. In that context it is possible that we see risk averse potential sellers of uranium sticking to their holdings even as prices rise, until there is more clarity on the corona virus effects on production.
The alternative scenario is, of course, that there are willing sellers out there, after all, and then the drawdown on inventories continue and the price stays stable.
My point is though, that the different factors with forced buyers, reluctant sellers and insecurity of supply from mines increases the odds of a sharp rebound in uranium price within the next couple of months.
Now I don't see the section 232/NFWG story being as important, if the market itself is about to rebalance - but of course a safety net for URG/UUUU would help if the above does not play out!
Good luck to you all!