Cameco & the Spot Market I found the following exchange (from the transcripts of Cameco's Friday report) quite interesting. It seems to me nobody really knows how deep the spot market is, but we are going to find out. Cameco needs additional pounds to supply their contracts and to maintain a 13/14 million pound cushion. The timeline appears to be this year. If the depth is not there fasten your seatbelts. If it is there I would expect prices to rise. Either way a new player has entered the game.
Question for those with knowledge of the spot market process: Can sellers refuse to sell to Cameco even if they are the higher bidder?
Operator
Our next question comes from Greg Barnes with a follow-up from TD Securities.
Greg Barnes
Yes. Thank you. Grant, there is a lot of talk about uranium inventories and the sizable volume is out there, but in your estimation how much of that is actually transactable or purchasable by players in the market?
Grant Isaac
Well, Greg I think it’s a great question. And I think we are going to be finding out with the actions taken. We will be in a position looking at our inventory, looking at purchases. We will be in the market, we are coming. And when we do we will see how deep that market actually is. And if it turns out its deep, we are buying materials very, very cheaply. And if the market is not deep guess that’s what’s happening, a very favorable circumstances is arising for us. So we are going to find out that will be a test this year and I will let you know.
Greg Barnes