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John Quakes on Uranium Cameco Presentation

[mangoe]

Today's Cameco $CCO #Uranium presentation by Grant Isaac was primarily restating material covered in Q1 2020 Conference Call, though there were a few interesting comments that I will summarize... /2

1:53 pm · 13 May 2020·Twitter Web Ap  

2) Recovery from #COVID19 supply disruptions will be similar to broad economic recovery's business resumption = When & how fast? Public Health issues control both the "when" & rate of production recovery under stricter operating guidelines... will be slow & measured, not fast../3

1:53 pm · 13 May 2020·Twitter Web App

3) #COVID19 #Uranium disruptions highlight geopolitical & geologic Supply Risks that existed prior to the pandemic + ability of #U3O8 producing nations & miners to respond & recover given both health issues & economic challenges, adding a new risk factor to future supply... /4

1:53 pm · 13 May 2020·Twitter Web App

4) State-owned #uranium producers are facing increasing risks in terms of ability to deliver to Western #nuclear utilities given rising concerns, as underscored by Section 232, NFWG report, Russia Suspension Agreement, etc. Market evolving to favour commercial suppliers ../5

1:53 pm · 13 May 2020·Twitter Web App

5) #COVID19 is accelerating destocking by both #nuclear utilities to meet current fuel demands & by Spot sellers, further tightening the Spot market so that it will be even tighter when utilities begin their restocking cycle. No producer urge now to quickly sign contracts …/6

1:53 pm · 13 May 2020·Twitter Web App
6) #COVID19 issues for #nuclear utilities have been delaying their return to Spot & Term markets. This is pushing back their restocking so that purchasing demand is being concentrated into the 2nd half of the year when market will be even tighter = good situation for $CCO …/7

7) Kazatomprom will resume their production back to 20% below subsoil agreement level prior to #COVID19 cuts but that will require wellfields development & will depend on Health & Safety in same way as Cameco's Cigar. More value to KAP to ramp up slowly, keeping prices higher../8

1:53 pm · 13 May 2020·Twitter Web App

8) Global supply disruptions may now interfere with #Russia's ability to offer fuel with its #nuclear builds. They have insufficient supply to meet those kinds of commitments so will be forced to enter into term contracts with commercial suppliers (with added trade risks) …/9

1:53 pm · 13 May 2020·Twitter Web App

9) Lastly, NFWG outcome does not yet provide commercial incentive for Cameco to consider restarting US #uranium production. Still too much uncertainty, though new Strategic Reserve adds to #U3O8 Bull case by increasing net global demand. Hope you found this useful. Cheers!

1:53 pm · 13 May 2020·Twitter Web App