the bigger picture, page-12

prakasht

While you correctly quoted that paragraph from that recent story on U Investing News, you should also, for balance, have included the immediately following paragraph - as follows:

"While the logic of “why pay more when you don’t have to” does make a certain degree of sense, on a longer-term basis, this strategy doesn’t seem like a sensible solution for utilities. Lower prices, as mentioned, have stunted the growth and production of uranium across the board. And if prices continue to go lower, or if they stay low for too long, eventually it won’t be economic to continue to mine and explore for uranium, which will add some pressure to the market. The again, if the fundamentals are still correct, high demand plus supply shortage, could equal upward pressure on the prices".

So while, yes, there don't seem to be any takers in the market for long term contracts at the moment, the market is in many ways a game of musical chairs and the dynamics could change any time.

Some analysts think this change is only months away. Some say it will be years. But without access to all the relevant info, it is really only guess work.