Cameco's problem....from Cameco's quarterly:
And our contract portfolio which will see us deliver an average of 27 million pounds per year through the end of 2020, will continue to provide price protection in a weak market and allow us to benefit when prices rise.
Cameco has been delivering about 30-31 milion pounds/year. To average 27 million pounds per year to the end of 2020, and considering the average is front loaded, in 2020, Cameco's sales will be 23-24 million pounds/year. THAT is a serious loss of market share.
A few weeks ago, I posted a link to an article that made the case that uranium shortages would be made up from a combination of upgraders, and US and Russian gov't inventories that are being sold into spot markets. The estimate was about 1 billion pounds, suggesting that it will take up to 2028 before the uranium market is rebalanced.