where is tibbs, page-14

From tradetech.com:

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December 4, 2009–Activity in the spot uranium market has slowed markedly as both buyers and sellers pulled back from the market prompted by conflicting views on future price movement.

Three transactions are reported since the end of November, and the spot uranium price sagged a bit due to the growing gap between willing buyers and willing sellers.

It is anticipated that USEC will enter the market next week to seek firm bids for the 200 tU (approximately 520 thousand pounds U3O8 equivalent) it expects to receive from the US Department of Energy (DOE) on, or about, December 15, to fund clean-up efforts at the Portsmouth enrichment facility. USEC will be seeking to effect delivery of the UF6 and receive payment by December 31, 2009.

Both buyers and sellers are looking ahead to the expected sale of this material and drawing very different conclusions. Sellers are citing the high market volumes recorded in recent months and the fact that many sellers came to the market in advance of the anticipated transfer of uranium by DOE to USEC. They argue that after USEC places the DOE material, available supplies will be extremely thin.

In addition, sellers point to the potential for significant demand in coming weeks from the newly formed Uranium Investment Corp.

For now, buyers have adopted a “wait and see” approach and expect compressed delivery and payment conditions attached to the DOE transfer to result in somewhat lower bids than might be possible under a more flexible delivery and payment schedule.

Consequently, the Spot Price Indicator is $44.75 per pound U3O8, a decrease of $0.50 from the November 30 Exchange Value—representing TradeTech’s judgment of the price at which a transaction for a significant quantity could be concluded today between a willing buyer and willing seller.

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Will be interesting to see what happens to the spot price after the 15th - tomorrow. And as has been pointed out, most uranium is sold at long term contract prices, which currently are $US60 and upwards, and expected to rise significantly over the next 2-3 years.