re: Ann: Company Presentation - Mines and Mon... Silly question...

re: Ann: Company Presentation - Mines and Mon... Silly question but could PEN do this also? Buy on spot and sell on contract??

http://www.juniorminingnetwork.com/junior-miner-news/news-releases/511-tsx/efr/26725-energy-fuels-announces-results-for-the-15-months-ended-december-31-2013.html#.UzaP5eEaySM


TORONTO, ONTARIO--(Marketwired - March 28, 2014) - Energy Fuels Inc. (NYSE MKT:UUUU)(TSX:EFR) ("Energy Fuels" or the "Company")


These long term contracts provide some protection to the Company against further reductions in the spot price of uranium over the next several years, since the Company's term contract prices are currently at their floors. The Company has contracted to purchase U3O8 in the spot market for sale into one of these contracts, which, along with Energy Fuels' significant U3O8 inventories and scheduled production, provides the Company with operational flexibility to meet its contract delivery requirements during 2014 and beyond. The Company's inventories and spot purchases also reduce the Company's need for near-term U3O8 production. This will allow the Company to place its Pinenut mine on stand-by in July 2014 and production at its White Mesa Mill on standby beginning in August 2014. While on standby, the Company will continue to accept alternate feed materials and maintain the White Mesa Mill in a state of readiness to be able to restart mineral processing activities when a production decision is made.

The Company's ability to replace produced U3O8 with purchased U3O8 for deliveries under one of its term contracts creates value for Energy Fuels by allowing the Company to purchase U3O8 at prices lower than its production cost, and to realize significant margins between the spot purchase price and the contract sale price. This allows the Company to extend the life of its mines into the future by preserving its U3O8 resources, reducing operational risk associated with production operations, and enabling the Company to implement additional significant cost-cutting measures.