GLE production start prediction and progress, page-21

Anotherdot to connect.

GrantIssac SVP and CFO of Cameco in res[one to a questionat the BofA Global Metals, Mining & Steel Conference May 18

In2021, utilities were really paying attention to uranium supply. We saw a lot ofuranium contracting going on because of that fundamental story that we weretalking about. Us and our competitors in the industry, we're seeing a lot ofinterest in uranium. But that changed also on February 24. Utility shiftedtheir attention from where's my long-run uranium coming from to where's my enrichment andconversion going to come from?

Justa reminder, Russia, about 40% of the global enrichment capacity is Russian.About 30% of the global conversion capacity is Russian. They're about 14% of global supply of uranium.They're 50% of the secondary supplies in our market. So utilities turn theirattention from where is the uranium coming from to starting to contract theenrichment service.

We saw a 40% jump in the enrichmentprice 2 weeks ago. It went from $72 per unit enriched to $120 per unitenriched, that reflects thepanic that's setting in, in that -- among those Western fuel buyers to securethe non-Russian source of enrichment. Once they have their enrichment lined up,they then have to turn their attention to, I need the feedstock.

Andso their next focus will be on the conversion sector, which is already pricingstrong. We expect to see more strength in conversion. We provide conversion.We're the only North American converter right now operating.

Andthen they will return their attention to uranium because now you need theproduct to which you're going to apply these services. So February 24 was a bitof a change, and it really shifted attention downstream. And so uraniumcontracting will pick up again when they feel comfortable with their enrichmentcoverage and then their conversion coverage and then we'll see the return tothe uranium demand in a big way.