Thanks for the info prhb.I agree this it will have an effect on...

Thanks for the info prhb.

I agree this it will have an effect on Uranium pricing in the short term.

However, if the uranium price stays at around US$40lb on the spot market and around US$60lb for the long term contracts, it will mean that EXT will be one of the few mines that will still be profitable at these prices levels.

Many mines that are currently expected to go into production, and even upgrades to production proposed by some current miners, may not happen, as they will not be viable at these pricing levels.

This would mean that whenever the uranium price starts to recover, due to supply and demanded constraints, EXT will be in a position to capitalise on the situation, buy ramping up production.

Quote

"In short current re-processing is/has been supplying about 13% of current annual uranium demand - and total military supply (if it was all converted back to civilian usage) might represent about 12 years supply at current demand levels. There is also the need to blend this material, with normal uranium - reducing the potential for any market dumping effects."

Utility companies, China and other sovereign nations are looking for security of supply over the next 50+ years.

They can not afford to rely on a supply of uranium, converted for civil purposed from weapons grade from the USA and Russia, that may or may note eventuate.

As EXT will be able to offer customer a constant supply of uranium for at least the next 40-50 years, I feel sure they would be happy to pay a premium to the current long term price, to insure security of supply.

It may also be the catalyst for a takeover offer being made for EXT, taking advantage of the current depressed uranium pricing.

The offer may not be as high as it may have been 6 months ago, but I would still expect around US$3B, to secure one of worlds largest and most cost effective uranium deposits.

Regards

Steve