mOST PEOPLE GET SUCKED INTO COMMENTS LIKE THIS AND SELL.
This is how it works.
The moment PDN has to buy say 1 Kg of U on the market for $130 it immediately hedges its position by entering into a forward contract for someone else to buy 1 Kg of U for $130 at a future date. This future date is a date PDN expects to extract 1 Kg of U from the ground. Therefore the risk is neutral.
So in a nut shell it does not matter what price PDN pays for U on the open market.
The only down side is that it misses out on keeping this 1 Kg of U and selling it when say the price hits $200 and gaining a profit of an additional $70. But it does not have to buy too much on the market because it is prodcuing at the correct rate currently.
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mOST PEOPLE GET SUCKED INTO COMMENTS LIKE THIS AND SELL.This is...
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Last
$11.81 |
Change
0.020(0.17%) |
Mkt cap ! $3.532B |
Open | High | Low | Value | Volume |
$11.60 | $12.03 | $11.57 | $31.41M | 2.662M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 15924 | $11.80 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$11.82 | 548 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 15924 | 11.800 |
1 | 10595 | 11.760 |
1 | 10595 | 11.730 |
1 | 35526 | 11.720 |
1 | 10595 | 11.700 |
Price($) | Vol. | No. |
---|---|---|
11.840 | 6547 | 1 |
11.900 | 11000 | 1 |
11.910 | 10595 | 1 |
11.930 | 10595 | 2 |
11.960 | 10595 | 1 |
Last trade - 16.10pm 08/10/2024 (20 minute delay) ? |
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PDN (ASX) Chart |