OTCQB:UEXCF - Post by User
Comment by
invest4funon Apr 30, 2021 2:09pm
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Post# 33102438
RE:Uranium at $ 200/LB - What Happens then ??
RE:Uranium at $ 200/LB - What Happens then ??spot will never hit $200.. it will go higher, but nothing like $200.
The simple reason is that uranium is actually a very common mineral in the earth's crust.
"Uranium is one of the more common elements in the Earth's crust, being 40 times more common than silver and 500 times more common than gold. It can be found almost everywhere in rock, soil, rivers, and oceans. The challenge for commercial uranium extraction is to find those areas where the concentrations are adequate to form an economically viable deposit." - Wikipedia
Back in 2004 when the last Bull ran, the exploration industry was focussed on the rich uranium deposits of the Athabasca Basin. These rich deposits are low cost producers.
When spot soared to $140, other much less rich deposits started to come on stream... primarliy ISR "mines" in Kazakhstan. Kazakhstan is now the largest producer of uranium in the world. Kazakhstan now has the infrastructure in place to extract lots of uranium. They, more than the Camecos and Oranos, now control the price of uranium.
We want a sweet spot in the price. One high enough to spur further exploration and development in the low cost Athabasca Basin but not so high that it becomes economic for Kazakhstan to flood the market with their ISR product.