Its the first time buyers have heard KAP wont meet production due to issues and they are yet to hear how bad it is. All was so rosey for them up until a few weeks ago any issur we will just make a phone call and they have spent the past decade living n a buyers market.
You got Japanese and Chinese delegates visitng Australia, French, Chinese and Russian visiting Kazakhstan to secure supply. You got financial entities stock piling the stuff. Govt saying they are going to triple the power generated by nuclear. This isnt including geo political risks and changing trade routes and America wont cull Russian uranium but knows Putin will more than likely stop supply and that after KAP announcement will send shockwaves throughout the sector.
The points Dustin makes that buyers are saying its only costing you $40lb and you want us to pay $70 is valid and will take time for them to get there head around the actually answer is "no we want you to pay $100- $120 and the longer it goes the higher it gets and we arent going to move until it suits us.
Closest scenario I can think of is the effects of Aussie govts not releasing land in a timely matter and then increasing immigration by 500k. The same is happening with Uranium. Over a decade of no investment then ramp up the demand and play catch. Theres a point of exponential growth. The govt increase subsidies and chuck bucket loads of money when its broken that only fuels the fire.
The dynamics are changing so fast and so will the funding options. Agree less debt is better, hownthatblooks I have no idea
DYL Price at posting:
$1.39 Sentiment: Buy Disclosure: Held
(20min delay)