What exactly is your point there Fluffy?$48.77 / pound average...

What exactly is your point there Fluffy?

$48.77 / pound average and Cameco is happy about it. Well done to them, they have operations all over the world both costly conventional and very economical ISR. I wonder when those long term contracts were signed?

The last long term contract Strata signed was $74+/ per pound, not a bad price even you must admit!

http://www.cameco.com/

Cameco sales commitments

In 2011, 37% of our U3O8 sales were to five customers. We currently have commitments to supply more than 290 million pounds of U3O8 under long-term contracts with 54 customers worldwide. Our five largest customers account for 47% of these commitments, and 38% of our committed sales volume is attributed to purchasers in the Americas (US, Canada and Latin America), 36% in Asia and 26% in Europe. We are heavily committed under long-term uranium contracts through 2016, so we are being selective when considering new commitments.

Cameco purchase commitments

We participate in the uranium spot market from time to time, including making spot purchases to take advantage of opportunities to place the material into higher priced contracts. We determine the appropriate extent of our spot market activity based on the current spot price and various factors relating to our business. In addition to being a source of profit, this activity provides insight into the underlying market fundamentals and supports our sales activities. We have also bought uranium under long-term contracts, and may do so again in the future. At December 31, 2011, we had firm commitments to buy 23 million pounds of uranium equivalent from 2012 to 2014. Seventeen of the 23 million pounds will come from deliveries under the Russian HEU commercial agreement, which runs through 2013.

Russian HEU commercial agreement

In March 1999, we and other members of a consortium of western companies signed the Russian HEU commercial agreement with JSC Techsnabexport (Tenex), the commercial arm of the Russian Ministry for Atomic Energy. Under the agreement, the western companies were granted options to purchase a majority of the disarmament uranium. We exercised our options and have been receiving deliveries of disarmament uranium. We will receive the remaining 17 million pounds of disarmament uranium to be delivered to us under the agreement from 2012 to 2013.

Trade restraints and policies

The sale of disarmament uranium into the US market is regulated by the

USEC Privatization Act, which imposes an annual quota on the sale of disarmament uranium. The 2012 quota is 20 million pounds, which is the maximum level and the same level as last year.