TSXV:VEC.H - Post by User
Post by
metalslugon Aug 04, 2010 6:52am
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Post# 17319612
Supply and demand
Supply and demandWhat everyone seems to be forgetting is that what sets the U3O8 price is supply and demand.
At these low prices Uranium companies are struggling to make a profit, only the very largest mines are profitable (but not by much, they are mining U3O8 as a bi-product!!). Cash costs are constantly going up.
As demand is going to increase dramatically over the coming years (it's a fact as there are lots of nuclear power plants in construction and more are being planned) supply will be decreasing because no other mines are going to be profitable and the world is going to need even more uranium.
Therefore the U3O8 has to nowhere to go but up. It must go up so new mines can come into production and increase the supply! Things will correct themselves, it's all really simple. URC is pure quality, has 44 Mlbs of low grade, open pittable U3O8.