RE:RE:RE:BNNThere is no Uranium producer on the planet that can or will produce at less than the production cost...opportunistic or otherwise. Any company that takes the "opportunity" to sell at $23/lb when it costs more than that to produce it will not last very long. Business is about making profits - not losses. A fact to consider is that inventory (that is, already mined supplies of Uranium above ground) was much higher in the last bull market than it is now. That is what is currently being used up to keep the worlds reactors operating. Surplus capacity is the number of pounds that operating mines can produce in excess of what is required annually to operate the worlds reactors. Capacity will only come back on line when the price increases substantially. Currently there is no surplus operating capacity. McArthur River will not come back on line unless CCO cannot locate enough Uranium at less than it cost to produce it to fill their long contracts. In other words the case for a step increase in price is steadily building towards a crunch time around 2020. There may be some price movement before that but just need to wait. Patience is the key to this game. Malcolm
199930 wrote: But as long as surplus capacity exists I see no reason for spike in U prices. Higher prices might attract additonal supply. Cameco might be diciplined in its response to low U prices, but other producers might be more opportunistic.
GreendaySo what you're really seeing is supply discipline in response to the exogenous market shock created by Fukushima.[/quote wrote: