a little sanity refresher, page-59

Hi Flyboy.

Regarding your comment on spot prices vs LT prices:

Producers are currently attempting to sell uranium @ $60.00 in mid 2016. No takers. No hedging by producers in 5 yr forward prices.

The current spot has fallen to approx. $50.15 today. As an analogy, the current fixed interest rate for a $5000 deposit is 7% per annum. 5 years compounded equates to a final figure of c.$7000. Compare this to the 5 yr price of $60.00 or the 7 -10 yr price of $68.00 for an investment of $50.00 at the NAB.

In my view, Uranium both LT & ST is in the doldrums and it may fall further. It's also sig. to note that either MT or LT prices are mostly linked to the spot price and have ceiling/floor prices that are attached to other associated pricing mechanisms eg. inflation, GDP etc. Most LT contracts source the spot price ATD.

Reasons exist why the U index has been mugged. PEN is no orphan.

The current LT price cited as $68.00 may be a desktop figure, but in reality, it doesn't work this way. These prices may mislead some to believe that uranium demand is forecast to improve from today's prices of $50.00. It doesn't.

All U producers cite the U spot price as being the primary indicator of future real aggregate sales. eg. Cameco, BHP. That being said, producers will always tell you that we are always in the midst of a near term turning point. I for one hope they are right. However, BHP for instance has recently stated that it may be another 8 years, or at least towards the end of 2020, before the U price takes off again.

The LT price of $68 cited by Tradetech etc. is about to fall IMO. This is not good news for any uranium stock holder. It'll be interesting to note where Lyntek goes with this.

*The DFS is now late. I wish they'd release it so we'll be able to discuss the content. Maybe another increase in their resource model beforehand? Who knows.