weak spot price in the last 2 weeks, page-7

Auto,

I presume that Japanese uranium consumers were stuck with their long term contracts and thus have built up the stockpile, and after restarts will continue to honour long term contracts. If this is the case it is easy to see seven years of stockpiles.

Given the bets as laid out in the futures spot market, the increasing supply coming on stream from other suppliers, the closing down of some reactors, and only a modest number of new reactors starting in the short term, and the fact that PDN will be selling and increasing percentage of production on the spot market (due to forward sales) I am struggling to find any fundamentals to justify a significant re-rating of PDN.

Notwithstanding the PDN price holding surprisingly well on Friday, I am looking at PDN now as purely a trading opportunity, rather than a long term purchase based on fundamentals.

On another thread the question was asked about Cigar Lake cost of production. All I could find on the Cameco website was a reference to Cigar Lake "initially" being greater than current COP, which, depending on how it measured is either $23 or $29.

I agree, that when the price does increase, if PDN will be a great place to be.