OTCQB:UEXCF - Post by User
Post by
MegaMAxTZon Mar 24, 2020 12:39pm
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Post# 30842135
Current Uranium Spot Price Rise VS Cigar Lake Flood in 2006
Current Uranium Spot Price Rise VS Cigar Lake Flood in 2006So few people in the general public domain still have ANY clue about Nuclear Power and the importance of Uranium in generating electricity around the world. This Cigar Lake closing which has been anticipated by many here is now upon us. 4-6 weeks closed forget it - will be at least a year and likely more. IMHO
Predicting the future, one must look into the past and back in time to December 1, 2004
Dec 1, 2004 Spot at $ 20.60/LB.
Sept 1, 2005 Spot up 50 % at 31.60/LB - Why ? No floods (yet)
Jan 1, 2006 Spot at $ 37.50/LB
May 1, 2006 Spot at $ 43.00/LB After 1st Cigar Lake Flood.
Sep 1, 2006 Spot at $ 54.80/LB word is gettting around about the U situation and shortages
Dec, 1, 2006 Spot at $ 72.00/LB After 2nd flood and things are getting serious.
And then after this up it goes way above $ 100/LB in 2007 until the fall of 2007.
So how does all this compare to now with this Cigar Lake closing in April of 2020 ? What was the longest Long Term contract written back in 2007 when prices through the roof ? Where any contracts signed for more than 12 years ?? Unlikely.
June 1, 2007 LT at $ 95.00/LB Now expired for sure.
June 1, 2008 LT still at $ 80.00/LB "
Jan 1, 2011 LT still at $ 71.50/LB Soon to expire but for sure
The guy's that signed at $70 +/LB pre FUKU in 2011 will never ever ever make that mistake again when the bottom dropped out post FUKU. So they stay on the sidelines and/or shop the Spot bits or else do nothing.
How fast can the U LBS be fired up again now with CL closure ? World is down to about less than 120 M produced and consuming 188 M and growing.
Took 2 years from Dec of 2004 to Dec of 2006 for the price to go up by $ 50/LB. That means that April of 2022 will see prices well above $ 60/LB - how can this not happen ?
Utility buyers REALLY must know something OR must not be interested if prices go way way up " "who cares wont affect the cost of running our Nuclear Power Plants by much " OR something else is my suspicion. We shall see. U sector is certainly a good place to have funds these days.
MM