With the uranium price vs uf6 and swu's, you have a few mines that have been mothballed and will be restarted as well as existing mines that can expand. Then you have the physical uranium trusts, which at some stage have to put their stored uranium back on the market. Not to mention a large virtual mine that Gle want to start up via tails reenrichment. Relative to enrichment (swu price)I think uranium production can respond quicker. Especially difficult is centrifuge enrichment capacity. When committing to more capacity they have to take into account that when a centrifuge machine is started up you can't just stop it. You have to start underfeeding instead. So capacity is added with more caution i think. How this plays back through conversion to uranium demand is, to me, what makes this commodity fascinating and different than say an iron ore bull run. Silex may have a foot in the uranium (supply is fixed price tails), conversion and swu's and Gle gets to decide which, when and how much. I'm surprised it's not on more investors radar.
SLX Price at posting:
$3.36 Sentiment: Buy Disclosure: Held
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