Well I'm not suprised at all.Just looking at other uranium...

Well I'm not suprised at all.

Just looking at other uranium miners, and its very obvious to me that conventional uranium miners are struggling with these low uranium prices. Whereas the low capex guys are not doing that bad at all.

I think these low prices are going to end up working in PENs favour big time, as I just cant see alot of the conventional boys that havent locked up funding surviving, or at least succumbing to an unfavourable takeover. All the while PEN just keep powering along, with developing their low cost operation.

Unless of course the mine is already producing, I dont see how some of these conventional guys (that are not sitting on monster deposits) are going to raise the huge funds for these new mines. Look at BMN, they are getting hammered, and Imo, the huge capital costs just to start up is Imo one of the factors for its decline. Maybe investors are thinking that its just not going to happen for them at these prices. Who knows. But what I do know is that every mine that gets its production timetable pushed out will favour the ones coming into production in the next couple of years.

I have no doubt the same sort of thinking would apply to PENs Karoo project, being conventional and all(although as far as conventionals go, a shallow open pit is probably the pick). But unlike the other miners, Pen have the luxury of having a potential low cost/high profit operation starting up well before the serious dollars are needed there.

Anyway just my opinion of course of what I see developing in the sector.

NK