If there is a a deficit of uranium in 2020, companies will want a contract before there is a supply shortage. why would a company wait until twenty twenty when there is a lack of supply and it is harder to get a good deal when they can make one now?
The uranium price isn’t just affected by supply and demand its also affected by government policies such as the Queensland government banning the uranium sector. It is also affected by security of supply meaning that operators want to buy uranium from a secure source which can guarantee deliveries and quality of the material. It can also be affected by other energy commodities such as the oil price etc.
Some investors seem worried about high inventories and seem to think that there might not be as much of a deficit because many of the countries have purchased their supply already but operators will want high inventories because if something happens (lack of supply, uranium trade embargo etc), they won’t be effected as much and can continue to supply their nuclear plants and keep the power on for their country until the supply is back. Even if they use their inventories they will stop at a certain point and use the inventory as a safety net.
why do you think Australia and Canada are doing a uranium deal with india? also Australia’s free trade deals with japan and china and other countries.
why would anyone sell under 20c after it was at 40c a few months ago and the company had a lot more troubles and uncertainty. Paladin is a much better position and the uranium price is slowly correcting itself (increasing in price) also with great developments such as the 100% ownership of a Canadian mine. The company is successfully bringing down cost price. Recently one of the directors acquired 1 million shares.
http://www.asx.com.au/asxpdf/20150911/pdf/4317zhrt0nn1p4.pdf
Every year around June, July for the past few years the price drops significantly and then recovers. this year it hasn’t recovered because someone is manipulating the market, short selling shares so they can buy insanely cheap shares off people who don’t see the value of this company. The share price doesn’t represent the true value of the company as others have been reporting on this blog. The price only drops by ten percent because someone is selling their shares at a 10% discount (or short selling) from what the share price is at the moment. the Uranium price is increasing, cost price dropping, lower board and staff overheads and other great developments from this company (Canadian mine etc). Paladin only needs a 37 dollar spot price to break even at the end of the 2016 financial year, isn’t the spot price higher already?
take over deals and other speculation is just speculation unless someone has insider information so until a deal is announced it should be assumed that there is no take over at the moment and a take over would be a lot higher price than current prices as some share holders would take a massive loss if they accepted a take over at these prices and esp the investment banks who also purchased at a significantly higher price.
don’t believe me or anyone on here go and do your research go into the ASX announcements, news, look at the balance sheets and all the other developments which is happening with this company and come to your own decision, a informed decision.
poppy you may have climbed to the top of the ship and rescued but you’ll be embarrassed when the helicopter gets to shore and you realise that you were on a submarine not a ship and u used the escape hatch lol
buy at your own risk
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