Ann: Company Update, page-57

First time holder of PEN today.
Bought in at 30c.
I have been in and out of PDN and currently long PDN.
Thought I should diversify my U holdings a little and think that the potential for s232 to be very positive for PEN makes it worth a punt.
I'm not across all the details of PEN's ISR licence applications yet. But the U situation in general has me very excited.
Current worldwide reactor fleet now larger than pre Fukushima. New reactors being built around double the size of retiring reactors. More reactor restarts in Japan expected.
Conversion price (U3O8 to UF6) at multi decade highs and Enrichment price trending up from lows suggest there is some upstream tightness of supply in the market.
Cameco signed 25m lbs in the US$50 ball park for a long term contract last quarter but done off market so not reported in the UxC figures.
Cameco buying spot to fulfil long term orders in the 9-11m lbs range this year. Cameco's inventories depleted and McArthur River not restarting till it is fully contracted at $50/lb. Cominak shutting down at the end of next year.
U market very robust in the face of a global recession.
An S232 announcement expected to bring US utilities back into the long term market in a hurry.

Cheers,
Tim.