RE:RE:RE:deficiency in Yellowcake presentationYes, storage is relatively cheap. It is one of the strange features of the Uranium market that long contract prices are so much higher than spot prices. Normally for most every other commodity spot prices plus storage roughly equals long term pricing or thereabouts. With Uranium that is not the case and never has been and I have no idea why that is. One of the reasons I have heard for the Kazakh Kazatomprom IPO is an effort by the Kazakhs to close the gap between spot and long contratc prices...ie to drive up spot prices to valuse closer to term pricing which makes their product more valuable.
Interesting there is no mention about transportation costs although I don't think that is a high cost.
Can anyone provide some rationale as to why spot prices are so different to long term pricing. I have never been able to fully explain why Uranium behaves so differently to other commodities in this respect. Have som thoughts on it but would appreciate any feedback on this question.
Regards
Malcolm