Lalit Jain
I spoke (faxed) Denison for information on the profits, price of uranium on world markets, cost of production etc. Their response is included below. It would seem that better (profitable) days are ahead.
How far ahead I don't know but I'm in for the long run.
Bill
From: "Chris, Jamieson" <chris.jamieson@denisonmines.com>
To: "'William & Kathleen Fitzgerald'" <wfitzger@barint.on.ca>
Subject: RE: Mclean Lake Project
Date: Wed, 23 Jun 1999 14:38:26 -0500
X-Mailer: Internet Mail Service (5.0.1460.8)
For competitive reasons we do not disclose the details of our uranium
contracts. Current spot prices are US $10.65 per pound. However, 95% of
uranium is sold under long term contracts which are usually at higher
prices. In our case we have a number of contracts which were done when spot
prices were higher and we expect to receive prices for the next few years
which are significantly in excess of today's spot priceCash costs are
expected to be below Cdn $10 per pound. As it will take several months to
ramp production up to normal levels we will likely not recognize and income
from McClean until the fourth quarter. White Rose will likely commence
production around 2003. As a result we expect to weak profitability for the
next several quarters.
-----Original Message-----
From: William & Kathleen Fitzgerald [SMTP:wfitzger@barint.on.ca]
Sent: Tuesday, June 22, 1999 9:35 PM
To: cjamieson@denisonmines.com
Subject: Mclean Lake Project
Dear Sir
I own stock in Denison Mines and have followed the company
for many years.
Now it appears that good times are returning to Denison and I have a
few
questions.
1/ What is the market price, per pound, for uranium as
expected to be
produced at Mclean Lake?
2/ What is the expected profit, per pound, to Denison?
Any other information which may be available about the future
profits
expected from Mclean Lake and the White Rose project.
Thanks
Bill
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