Steve 70The maximum i can recall the spot price having risen to...

Steve 70

The maximum i can recall the spot price having risen to was $147per lbs.

I dont totally agree that the margins are skinny at the moment in relation to PDN although as the long term and spot prices rise the profit margin will multiply quickly.

PDN is in a far better position than when the spot price was $147 they now have a second mine which they did not have then and the langer heindrich mine had just been commissioned with a few initial teething problems, it has now moved on to nameplate production and has seemlessly expanded from phase 1 to phase 3 increasing production along the way.

One of the main reasons for the rapid rise of the spot price was the intervention of the hedge fund pushing the uranium price to an unrealistic figures, even though the power generators could sustain the prices and still remain profitable,

The question is will this happen again? I believe the hedge funds will get involved again to what extent remains to be seen, I also believe that the power generators will be more inclined to go for long term secure contracts so as to have guaranteed supply at reasonable prices therefore negating to some extent the hedge funds power to affect the spot price to the same effect as before.

In the case of the funds (we have had a banquet once before lets see if we can get a great feed again,) yet the power generators will also have learnt there lesson

for what its worth i see the spot price sitting between $65-$75 in 12 months time