future price of gold, page-38

Skol, the difference with uranium, is that a lot of the end users are also the owners of the deposits globally that are actually still in production. Since uranium is such a small cost component of the production of energy, vs the revenue they generate fron energy sales, they can afford to run production at a loss. In other words, they ensure any excess cost is built into their margins by yanking up energy prices to the end user. The theory being that the market would prefer to have energy at higher prices rather than have no energy at all.

Further to that, end users who don't own their deposits have long term off take agreements at prices outside of spot that allow the mines to still produce at marginally profitable levels.

The case for gold is dramatically different.