What the market doesn't realize is that GLE (and more so the rest of SLX) is NOT a U3O8 supplier. If you look at the "triple opportunities" only the fist one (5mlbs/yr NUF6) is a uranium "producer" (i.e NOT a miner) and that this product is "protected" since it carries a "conversion" premium (not a Kazatomprom product) and is genuine "stars and stripes" since it's feedstock lies in casks as depleted UF6 in a yard in Paducah, KY/ The production of LEU (opportunity 2) and opportunity 3 (HALEU) have nothing to do with Kazatomprom supplies and are likely to get DoE support from the RfP to be submitted by 26/8. If you look at the Cameco charts (at their recent MD&A presentation): we have:
Unlike the U3O8 spot price which has fallen back to around the term price. The enrichment and conversion prices (both on term type contracts) have remained buoyant - the underlying fundamentals for SLX have remained consistent where the Kazatomprom increased production of U3O8 has little impact on their underlying fundamentals. IMHO the market just acts like a "herd of sheep" but this is also presents a buying opportunity
SLX Price at posting:
$4.42 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)