RE:Down go the above ground stockplies - CamecoKazakstan will sell uranium at spot to Cameco until they run out of money.....Over the next two years, Cameco's contracted sales are headed south in a big way, and when contracting starts up again, Kazakstan will steal a lot of Cameco's market share......add in CCO's debt, and the CRA and IRS problems, and a looming strike, CCO is in big trouble. Can you imagine all those suits from Saskatoon putting on slickers and trying to run McArthur and Cigar on standby? Just turn one valve the wrong way and the workings are flooded, puting CCO right out of business. You have to be bat sh*t crazy to own CCO stock, but to each their own....
Malcolm2001 wrote: Nice bit of data from Cameco on their website. (CEO corner). Tim Gitzel says that in 2017 CCO will produce 25 million pounds but they have contract orders for 32 million pounds. So a shortfall of 7 million pounds. CCO has stockpiled quite a bit (he doesn't say how much) which means they will draw that down by 7 million pounds. Even Giz can do the math that the 7 million pounds reduces above ground stockpiles by that amount. A wise man like Mr, Gitzel will likely be copmparing the spot price of $19 to the contract price and suggest replacing the 7M lbs with spot bought material. Who wouldn't at that price.7 million pounds is about 5% of total world production. Bottom line is production is falling consumption is going up. Bull market is going to happen. Sit back, relax...or watch Giz blow another gasket.
And yes I DO own quite a big chunk of CCO been buying it on the way down - so that makes me a pumper I guess. How stupid can you be.
Malcolm