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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@Excelsior@Slmjr - Companies like $CCJ$CCO$UUUU$EFR$URG$URE and $PEN.AX have longer term offtake agreements in the mid $40s to mid $50s and that is how they are able to keep producing #Uranium. They are not selling most of their #production at spot prices.
I posted this over the weekend as an example for Ur-Energy:
"During the quarter, sales totaled $14.8 million on contract sales of 250,000 pounds at an average price of $59.28 per pound, or 145% above the average spot price for the same period of $24.17 per pound." $URG$URE
@Excelsior@Slmjr - Most companies keep the specifics of their #Uranium off-take contracts close to their chest, and don't reveal all the details, but in interviews I've listened to with Energy Fuels and pieces I've read on various Uranium sites it seems many expire from 2018-2020. Most are staggered anyway.
Here was guidance from $URG for the remainder of this year:
Continuing Guidance for 2017
"We expect to have contract sales of 241,000 pounds U3O8 in 2017 Q2 at an average price of $49 per pound. We plan to purchase 210,000 of those pounds at an average cost of $23 per pound. The balance will be delivered from Lost Creek production. The 2017 Q2 production target for Lost Creek is between 60,000 and 75,000 pounds dried and drummed."
$PEN.AX Peninsula strategy has already delivered prior to the start of Lance Projects production
(from page 19 of their corporate presentation)
– Approx. 8 million lbs under Term contracts (5 agreements)
– US$55/lb weighted average delivery price under existing contracts
$ARY Anfield Resources is getting ready to go into #production and they'll likely do something similar to what Penisula did.
@SFtrader@Excelsior@Slmjr- Also I believe that once a contract expires, if the price remains low enough, utilities may just buy in the spot market. Makes me question the near-term imminent rush to contracting thesis that's out there.
@RulingminingAgreed @wannabeinvestor@Slmjr. Must be clear to most following uranium here that the US seems to be falling behind in global nuclear influence while China is moving ahead very fast. Feels like uranium is also gaining traction. Won't be surprised if we saw 2017 lows in May.