UEX Corp UEXCF

Projection : Uranium Spot $ 200/LB - Long Term $ 115/LB

[MegaMAxTZ]

This indeed has been a tough run to be a part of - for me 4 1/2 years and counting. Talk about contrarion investing !! I had a bit of Boeing at $ 75 and thought $ 195 was pretty good over a year ago. $ 366 this AM.

And Uranium spot down $ 0.75 as someone said. BUT no volume so does not mean a thing. This thing is going to hit hard when it does. Utilities are in for a rough ride not that it really matters to them if they pay $ 33/LB or $ 133/LB.

The reactor count under construction I believe is a key measure. These are all BIG plants. If 57 are under construction, going by the way reactors are counted historically - this really means about 228 reactors are under construction. Million pounds per year vs about 250,000 LBS per year like the old ones. Vogle 3 and 4 in GA will be million pounds per year. So what if a few old nuclear plants are mothballed, they are being replaced with much much bigger plants that eat much more Uranium.

McCarthur River has what when it reopens maybe 8 or 9 years. Cigar Lake maybe the same.
How much do the Kazaks really have in the ground ?? US companies can crank it up but are much smaller deposits. Where is all the Uranium for all these plants going to come from - certainly not at  $ 33/LB

Cameco, Kazaks are not going to mine and sell at $ 33/LB - ever again. So they will keep the mines shut until prices are at least $ 55/LB. The spike in Uranium prices that happened in 2007 will happen again only this time it will be much higher - not for long, maybe for 6 months - but will happen.

When this information hits the mainstream news, more and more people will pile in to far fewer U companies. Yes some new Uranium " companies " will pop up saying they have a Uranium mine in their backyard. But there are not as many real legitimate companies this time as in 2007.

A lot of money will flow into this sector - likely at least double the dollars vs the last time. Those that are still standing, including UEX/CoEX  will see a dramatic rise in share price. How much is the question.

If I am a big Utility with a few reactors - I am going to sign up for $ 77/LB for 10 years - right now. Just my take for this AM. A 12 % Cobalt hit at Weat Bear will certainly help the cause as well. Maybe we will hear next week.

MMTZ