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Gold/Mining/Energy : Uranium Stocks -- Ignore unavailable to you. Want to Upgrade?

To: siempre33 who wrote (3572)	10/29/2006 9:47:57 AM
From: smh	Read Replies (1) \| Respond to of 30216

<I believe this to be true... Buzz on other boards is that Dines predicted problems at Cigar Lake months ago, despite denials by CCJ executives, and told his paid subsribers to bail awhile back. Also, speculation that the problem is even WORSE than reported. Mine might never reopen. CCJ has also been rumored to be buying yellowcake at spot to meet delivery obligations due to operational problems at other mines.> Buzz...speculation...rumor... Very interesting if true, can you provide anything more to support your belief that the mine may never reopen or of problems at other mines. Allow me to match your speculation - but with a different spin. The Game is Afoot Knowledgable people (other than Dines) have been warning of supply disruptions. Not to be overly cynical, but the Cigar Lake setback couldn't have come at a better time from the producer's viewpoint. It gives Cameco plenty of room to game the situation. <The company noted that it has "interruption" protection built into most of its contracts, which allow it to reduce or cancel volumes if there is a meaningful shortfall in planned production.> It appears they can invoke this protection as necessary, but are obviously free to secure replacement material in any way they chose. Think of the possibilities. Now, depending on how much contracted delivery volumes/prices are based on "spot prices," it might be an interesting economic exercise to buy up spot material for later (optional) contracted deliveries. Cameco specifics aside, one way or the other, the producers are going to take full advantage of both the Cigar Lake and the big picture reality. With the concentration of production in so few hands, some degree of "cooperation" might be expected. SMH