Hi Anthony75Surely the Nunn-lugar program is an expensive way of...

Hi Anthony75

Surely the Nunn-lugar program is an expensive way of obtaining uranium any way considering inputs required to extract the resource.

I have thought more about the drop in spot price that occured this week from around the $50/lb to $43/lb which is roughly a drop of 14% change in price. While I dont know the percentage change in increase in supply that occurred, the drop in price indicates to me that the supply is still subject to elastic price elasticity. Therefore any stockpiles that are released are resulting in large drops in price due to demand increasing at lesser percentage proportion to supply.
The other option is that the stockpile of uranium released was below average total cost and possibly above average fixed cost in order to produce a cashflow and reduce inventory. Maybe it was from a company who are in a country where the End of Financial year is near.
It doesnt quite make sense though when organisations like PDN can secure contracts around the $60/Lb for future expected prices...This is saying that expected future prices will be significantly higher.

Just some thoughts.
Cheers
PDG