Absolutely, it's not a linear relationship.
If, for example, PDN all in mining costs were $39 per pound and the uranium spot price hit $40 per pound, it would be earning $1 per pound produced. If spot goes up $1 (i.e. 2.5%) PDN is now earning $2 per pound produced (i.e. profit up 100%).
This is a simple example and not for the purpose of debate about PDN's all in costs etc, just to show that the spot rise is not linear with the value of mining companies.
But the point of starting this post was that my observation is that uranium miners are completely undervalued given the significant uranium price movements we've been seeing lately and the fundamental reasons why uranium will continue to rise (supply shortfalls and demand increases).
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Last
$7.47 |
Change
0.590(8.58%) |
Mkt cap ! $2.234B | |||
| Open | High | Low | Value | Volume |
| $7.09 | $7.51 | $7.09 | $98.97M | 13.49M |
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| No. | Vol. | Price($) |
|---|---|---|
| 1 | 50000 | $7.46 |
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| Price($) | Vol. | No. |
|---|---|---|
| $7.48 | 10967 | 2 |
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| PDN (ASX) Chart |