abn amros opinion of today re pdn .. era

this extract from abn amro is for discussion only......DYOR

Uranium has been out of favour as the price has dropped ~50% from its highs last year. However, the drop in the uranium price is highlighting the differences in the businesses of PDN and ERA. PDN was the market darling of the uranium boom, with /ERA somewhat lagging behind due to its fixed price contracts. However, as the uranium price falls, PDN is losing out due to its spot exposure leverage, however, ERA is unaffected on its long dated contracts, but will benefit from ramped up production as it singed some fixed contracts at higher uranium prices. We believe there is now an opportunity to sell PDN and buy ERA to play the uranium story.