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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.
@wannabeinvestor@onekey, suspect the reason why this has not yet happened is largely because of the Kazakhs. they were the ones who were ramping up production in a declining price environment. then again, why don't the Western producers cut back on production and recycle the secondary supply overhang is beyond me. They all have longer-term off-take contracts priced at a significant premium to the spot market prices. I know $EFR used to do it, and I suspect $CCO must have done that as well. but it's likely difficult for $CCO to meaningfully cut back production at Cigar or Mac. it's probably cheaper to run these mines than to put them on care and maintenance. $CCO I think mentioned on their latest earnings call that they'd be prepared to cut back more in H2, but will they? at the same time new production capacity is being opened up, i.e. Peninsula's ISL operation in Wyoming, Husab and I think there is at least one other.
@GoldfingerCameco $CCJ$CCO guidance for 2017 is for delivery of 30-32 million lbs of U3O8 at an average price of US$49/lb and average unit cost of sales of US$36-$38/lb. When those long term contracts roll off over the next few years Cameco will be producing $uranium at a loss unless we see a turn up. Even 5-year forward pricing is currently in the low $30s.
@Geo@ocotilloredux So you imply that Cameco has no competitive reserves in the ground now?
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@ocotilloreduxHave me on if you want @Geo. I designed it all at McArthur River since 1997. Tell me something new. Otherwise you are my btch. Doug Beattie.
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@Geo@ocotilloredux Don't want to argue with you on CCO. Clearly you have an edge. I heard that they were heavily downscaling theirs operations, plus TEPCO case, plus taxes case, nevertheless thinking that they have some very strong assets to survive but after you statements my sentiment might change dramatically...
@staffpro@wannabeinvestor$CCO$NXE$BHP if all the experts say the cost to mine is north of 65$ all-in why is anyone mining why isn't everyone just buying spot? Suitors and current producing companies included.
@wannabeinvestorThe uranium market is not balanced and likely requires further cut-backs of primary supply. The utilities that are using the spot market for near term supplies need to see that the overhang is reducing, this will also activate the term market and more deals such the recent Bruce Power with $CCO will follow.
@BDMinefinderI think there is a decent chance of a Strike this fall at Cameco $CCO$CCJ. Heard from more than one industry contact that Cameco is looking for big pay cuts. It is interesting, I think it would be great to have a strike and I am thinking Cameco would probably want a year long strike to tighten up the market. It will be interesting to watch the parties explore negotiations. If I was Cameco, I would ask for a big pay cut, with pay bonuses if the price improves, but if the union won't accept, nothing wrong with a long strike. The sad part of this is the cost on the workers. I would almost want to pay the workers half pay and ask them to take from March to September next year off. That would give them plenty of notice of the layoff to save money to make it through the downturn and/or plan vacations for next summer. Probably too idealistic. #uranium
@EricTheActor@Searunner, I figure $CCO has in the ballpark of 30mm lbs of inventory, based on the inventory value reported on their balance sheet. @Ocotilloredux would know better, but I'd say no problem serving long term contracts with inventory for at least 6 months.
@Rulingmining@Slmjr I made these comments about the article yesterday on BDM's channel. Added a bit today.
A few things the article doesn't say is that Korea's crazy new President is banning the construction of any planned reactors.
That China has only actually started construction of 1 new reactor in the last 18 months and they are waiting until that AP1000 or whatever it's called is completed in 2018 and a success before they start any new construction.
Unfortunatlely, China is putting funds to renewables, wind and solar for now.
This is similar for most of asia except India which seem to be developing both renewables and nuclear as they rightly realize they need baseload to support the renewables.
Japan just started a 5th reactor which is good, but still on the slow end. Hoping they get to at least 10 by the end of the year.
@tcuit is relevant to $NXE, $CCO, $DML and all others as its a URANIUM related video. dont get your panties in a bunch lades. Someone just posted a huge blurb specifically about API .. you ladies gonna jump all over him too!!!!
@ocotilloredux@Searunner Nothing rookie about it. A very smart question IMO. The answer is, a lot less than you think. I would have McA and Key Lake on one week on/one week off in a flash. Cigar Lake is a tougher story since the jv partners would put up too much of a stink. Neither Bob Steane nor David Bronkhorst took care of the real issue at Cameco- sacking half of head office including most of the Projects group. $CCO$CCJ
@cole119Both $URA and $CCO had good rebounds today after some pretty crappy lows a couple days ago. U spot price basically unchanged. Could we be finding a bottom? A bit too early to tell, but here's hoping both have a good day tomorrow. One day at a time....
@cole119BOC signaling a rate hike for Canada is upcoming. My guess is Sept/oct ish. Loonie gain last few days does not help $CCO at all. US rate hike might be the last one for quite some time, perhaps remainder of 2017. Low inflation fears. USD weak coming into this hike - opposite of what normally should happen.
@teevee@ocotilloredux, $NXE$CCO so the rumour is that Cameco is trying sell Kintyre (70%) and Yeellirrie (100%). Why? Is it because Cameco foresees Kazakstan and Russia eating its lunch and taking signifiant market share when long term contracting rolls over, wanting to reduce debt ahead of that scenario as much as possible, effectively down sizing the company? or less likely, is it possible Cameco wants to raise cash in an attempt to buy $NXE, and bring in a partner on a bid?
@GoldfingerAfter news that South Korea shut down a nuclear reactor today here are some stats on $China and its nuclear power plans via Haywood:
"China will easily replace what is lost by Korea:
o China’s reactor fleet units includes: 36 Operating, 21 Under Construction, 41 Planned, 174 Proposed
o China’s ‘proposed’ reactors jumped by 35 units in April of this year, which alone replaces the loss of the entire Korean fleet.
o Since Fukushima (March 2011, Japanese Earthquake / Tsunami) China has grown its operating reactor fleet 177% (from 13 units to 36), and has increased its total pipeline from 200 units to 272 units (36%)"
anonymous10yr - -84%, 5yr - -56%, 1yr -22%, 3m -18%, 1m -8%, 5d -5% .... $CCO#lethal this is the widowmaker trade
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@staffpro@TheNextBigRush how if Kazakhstan ISR uranium aisc are around <$20 last time I looked. (someone correct me if i'm wrong) $NXE$CCO ... it's like oil in Saudi Arabia put a straw in the ground and you pump for <5$/barrel
@GoldfingerAt today's low $NXE was trading at a US$575 million market cap. Suddenly US$1 billion becomes a can't say no to takeover offer which equates to ~C$4.20/share. It wasn't like this earlier in the year and I doubt that anyone has the foresight and/or capital to seize this opportunity. $CCJ$CCO$uranium
@ExcelsiorAs far as that article, Western Australia is still grandfathering in the 4 larger development projects under works, and the rest of #Australia is still open for #Uranium mining. This won't have that meaningful of impact on supply shortages in the foreseeable future.
"The four proposed mines that will remain immune to the new regulation are Toro Energy's $TOE.AX Wiluna, Vimy Resources' $VMY.AX Mulga Rock, as well Cameco's $CCO Kintyre and Yeelirrie — Australia's ~biggest undeveloped uranium deposits."