uranium spot crashes to 31.50, page-19

No argument FN, however I also never stated they would be.

My reference that has been missed by all but a few that obviously know, is to the SML condition that permits PEN to both BUY and SELL uranium.

They can buy at the very low spot, as you rightly state below what it would cost PEN to produce, and sell at the LT contract they have in place at a much higher price. Doing so without production. So short to mid term PEN is ok.

If the U price remains suppressed LT then the whole industry is stuffed for producers and U supplies will diminish affecting utilities. That would be a world crisis situation.Will that eventuate? Lets wait and see, but I think not, definitely not for China it seems as they are stockpiling all they can get at these low prices. They are the best long term investment barometer IMO, they always take a long term view and are streets ahead of western thinking in this regard.

I believe this will swing around and the U price will rise, albeit slowly, and PEN will be perfectly positioned to take advantage. China is already taking advantage, from a buyers/utilities perspective.

One thing is certain, other U hopefuls like BMN and DYL will have an uphill battle until the U price turns around. PEN in a much better position...for now.

Certainly one to watch and no doubt you will continue your ongoing vigilance with the U spot price watch ;-)