So many PEN supporters keep refering back to their long term sales contract that they have in place at $74/lb but no one seems to highlight the fact that the contract is only for 1.15mlbs OVER 7 YEARS. That only works out to be around 164k lbs per annum. The contract was for a WEIGHTED AVERAGE PRICE of $74/lb. As no details have been provided by the company on how this weighted average is calculated, there is a possibility that PEN will not be securing a price of $74/lb in their first few years of sales.
Will be interesting to see how PEN performs in light of the continued fall in the price of uranium. I personally doubt it will be immune as many seem to be stating. The SML is definitely a bonus and should assist them in the longer term though.
Amazing to watch the uranium price continue to fall. Glad i sold out of all my uranium shares immediately after Fukushima.
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