cash costs now $34.35 avg over both mines, page-36

The other thing that many may not understand is that uranium is also now a commodity that is traded as a "paper" version, by hedge funds and an ETF. They trade uranium derivatives and futures, and of course that implies that it is susceptible to all the usual ploys that occur in such a situation. Shorting, price manipulation, etc.

Now I'm not saying that to feed any conspiracy theories - but merely to point out that the two main uranium prices (spot and contract) are NOT completely dependent on the laws of supply and demand any more. The spot price, in particular, is mainly determined by "financial entities" trading the derivatives (check the tradetech.com spot market report most weeks). There is the occasional utility buying some top-up uranium on the spot market, but the majority of the transactions nowadays are these "financial entities" (read: hedge funds and the ETF). And of course they can't trade physical uranium...

And although the contract price is much more attuned to the laws of supply and demand, it is sentiment that pervades through the whole market, and the sentiment is set by the spot price, even though it has very little to do with the "real" price.

The sector is much more complicated now than it used to be, but we still can't get away from the fact that the demand for uranium is only going to get greater over time. But just how much time is the question....

And in the meantime, PDN is one of the better-placed companies to take advantage.