Of course spot matters to PEN! * 25% of stage 1 is not under...

Of course spot matters to PEN!

* 25% of stage 1 is not under contract
* 46% of stage 2 is not under contract
* 100% of stage 3 is not under contract
* Gus thinks it matters because leaving large amounts of our uranium inventory uncontracted is part of his plan to leverage rising (hopefully) prices in future
* Falling spot signals that supply continues to be greater than demand. You should be asking why the material being sold on spot market isn't being contracted or held instead.
* Over the last 8 years, spot has been a pretty good leading indicator for term price direction too. Spot falls, then mid term, then long term.
* Also worth considering why spot might be falling right now. Earthquakes, especially the one in Japan will increase the political opposition to restarts which are crucial for increasing Uranium prices.
* Borrowing money or negotiating streaming agreements is likely to be more difficult in a weak Uranium market.

Anyway, for the reasons above, I think it's more accurate to say that spot matters a lot to PEN, despite being in a good position to weather the storm. There's not much point arguing about it though because very few are reading our posts, again due to the terrible spot price chart scaring all but a few contrarians and greenies away.