Agreed Mymom, the spot market represents small volume compared to the term contracting market and while it can move independently it will show bigger gains once the term contracts start being reported.
We have to keep in mind that Kazatomprom's idylling wellfields will only start to show a drop off in production from now and over the next few months so to have an overnight reaction is probably not realistic. Also, they won't go back into full production straight away, it will be a gradual ramp up so we will probably head into 2021 with reduced production from them.
KAT are in several JVs and no doubt over the next few months this squeeze is going to be felt by their partners, it will depend how deep KAT want to dig into their inventory. My understanding is Kazatomprom and Cameco like to have a running 6 months worth of inventory so it depends if this event is deemed as urgent enough to reduce that number.
From the diagram below no doubt partners like Orano and Uranium One will start to feel the squeeze soon enough.
Uranium space moves slowly but no doubt it's still a perfect storm brewing..
VMY Price at posting:
3.5¢ Sentiment: Hold Disclosure: Held
