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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.
@ExcelsiorCorrection - On the most recent $URG statement their offtake agreement is for and average price of $47.61, but that is a blended rate between a few different contracts. They also sold some product at spot prices that averaged $32.70 per pound.. The point is that they aren't selling for $18-$22.
"The Company has contractually committed 662,000 pounds during 2016, at an average price of $47.61 per pound. We have also established our delivery schedule for those commitments, with distribution throughout the year. From 2016 – 2020, these long-term commitments total in excesss of 2.8 million pounds, at an average price of $49.60 per pound. We have begun to make term agreements into the 2020s."
As for $UUUU$EFR they have a higher #Uranium contract price:
"150,000 pounds of #U3O8 sales were completed by the Company pursuant to a long-term contract at an average realized price of $58.00 per pound."
As for $CCO$CCJ Cameco: Average realized price $43.37 ($US/lb) $56.34 ($Cdn/lb)
@Excelsior@Sarb - $NXE Nexgen is a great choice for sure as the premier #Uranium#Explorer, and more insulated that some of the smaller explorers,and even most of the uranium stocks as @PamplonaTrader pointed out.
If you want a #producer$UUUU$EFR Energy Fuels is fairly solid and is the second largest US Uranium producer. There is also $URG$URE Ur-Energy if you want more of a high torque Jr #Producer.
If you want a #development stage Uranium company then it gets a bit murkier to pick out a "safe" pick but $DNN$DML Denison has been around decades, owns part of the mill with Areva that processes $CCO$CCJ Cameco's ore, has exposure to the #African projects that it spun out to $GXU GoviEx, and a mining remediation and clean up division as another revenue stream, in addition to it's exploration projects in the Athabasca Basin and it's JVs with other companies. $UEC Uranium Energy Corp is a highly followed company, promoted heavily, and has a fully built and permitted processing center with a hub and spoke formation of properties encircling the plant. There are more, but they aren't as liquid or widely followed (yet).
It's tough to recommend stocks for others, because everyone has different strategies, time horizons, risk tolerance levels, jurisdiction rules, market cap or share structure preferences, etc.... but those are all companies that should do well over the next 6-12 months in a rising Uranium price environment.
You can click on any of the $blue links above and go down the rabbit hole of news, charts, and chatter of each company here on CEO. That's the beauty of this site, and why I decided to tag them in retrospect.
@SFtrader@TheHolyBuyBull what is it in particular that you like about $ARY? I understand that they have numerous ISR projects and a mill, as well as some royalty agreements with #UUUU#EFR and #WSTRF#WUC. I'm not really sure of the nature of these agreements, I'm just starting to look into this company. Do you have any insights that you can share?
@FundamentalAnalysisGrant of rights psshht talk about being a lightweight.....no open market buying = weak
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Union StationBrent Cook used to say he owned Energy Fuels stock but the implication of a comment by in a recent interview is that he is no longer invested in Energy Fuels. It could be I misheard or misinterpreted his comment. Can anybody confirm the situation either way? This is the interview:https://www.youtube.com/watch?v=BtCzKMDUqm0+
SEDI_botEnergy Fuels Inc. $EFR just filed 40 reports. View full report: SEDI:EFR
@Excelsior@Goldfinger - Absolutely. But a contract is a contract, and you don't get to decide to bail on it just because pricing collapsed.
If the current #Uranium#Producers, like $CCO$CCJ Cameco, $EFR$UUUU Energy Fuels, or $URG$URE Ur-Energy, didn't have longer term supply contracts in place at higher prices, then the sector would have been screwed long before now. Without these longer term supply contracts there would have been 0 lbs produced the last few years.
@Excelsior@PamplonaTrader - I get your point, but if they did nullify the supply contract..... first of all, it would royally screw over $CCJ$CCO and the concept of longer term #Uranium supply contracts in general.
What would you advise the other power companies with longer term supply contracts in the $50's with $CCJ$CCO$UUUU$EFR$URG$URE do?
Should they all cancel their off-take agreements and buy uranium at spot near $25?
That would not only shut down the #producers, but it would crush #developers and #explorers as well.
@SlmjrThanks for the feedback @Excelsior and @PamplonaTrader. $UEX was actually my first uranium stock got in last year at around .18c On the fence about buying more or selling and buying more $EFR or another company that is producing near term. Looks like I have some more reading to do. Appreciate the links tho it is odd that they would be selling shares after their last news release.
@SlmjrThanks for the feedback @Excelsior and @PamplonaTrader. $UEX was actually my first uranium stock got in last year at around .18c On the fence about buying more or selling and buying more $EFR or another company that is producing near term. Looks like I have some more reading to do. Appreciate the links tho it is odd that they would be selling shares after their last news release
@FundamentalAnalysis@Lukester599 From an initial cost basis $EFR is my largest holding compared to GXU and UEC within the uranium space.. GXU is the largest by current value and I've trimmed most of my UEC exposure. Ishare the same fustrations in regards to $EFR which I think has some marketing issues and the team isn't able to draw enough interest to raise cash on favourable terms. UEC and GXU have some big name, and big promoters backing it so they can draw in the crowds plus they have big stakes in the companies which keeps them aligned with the retail shareholders. The $EFR team currently live of their salaries and options and don't hold any meaningful stake in the company. I still think $EFR offers far superior potential and to some extent assets (given recent exploration/acquisitions) compared to UEC, and it also trades at a discount to UEC. If Energy fuels was known as Uranium fuels that would probably boost its marketing ability. I think the investor relations team has a lot of work to do, because clearly they are behind their "competition". However I am positive if we are in a real rally, EFR has further to run then UEC. Goviex however should run the furthest if the uranium price continues to rally.
@XrivaQ : Often SEDI shows insiders buying then selling [ or selling then buying ] the same # shares in the same day. Why do they do that ? And it is of any significance to us as investors ? #index$EFR$UUU#SEDI
@PonEFR has been lagging other companies for a while now. Like others have mentioned, their investor relations have a lot to do. Promote the damn thing
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@Wannabeinvestorproducers generally have underperformed the developers/ explorers in the U space so far.
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@PonI see more value/prospect in EFR than UEC, but from what I can tell, Amir Adnani is a better promoter. The other thing is I hear a lot of chatter from the US/Canada markets, but Australian market is kind of quiet, $PEN.AX is not getting a lot of love... Any input on that?
SEDI_botEnergy Fuels Inc. $EFR just filed 15 reports. View full report: SEDI:EFR
@Excelsior@barracuda - good point on the disconnect in the pricing reality and where the futures are trading as a projection.
$URG$URE Ur-Energy and $UUUU$EFR Energy Fuels both have off-take agreements in the $40's & $50's and I can't see them renegotiating at $26. ;-)
@Wannabeinvestor@Excelsior, @barracuda, these agreements that $EFR and $URE have are mostly legacy agreements. I keep in touch with a nuclear industry consultant who advises nuclear utilities for a living. his take on term contracts is that over the past couple of years term contracts have increasingly been based on spot + margin to cover for cost of capital primarily. he also says graphs with supply gaps are rubbish, there is plenty of U3O8 available. his summary for 2016 is primary production of ca 60k tons, secondary supply off ca 16k tons and reactor requirements of ca 61.5k. he thinks the flow of secondary material into the spot market will carry on for the foreseeable future. he also tells me UxC and TradeTech do not actually have access to term contracts, so whatever they report as term prices are just a speculation. he thinks up to 10 reactors online in Japan by the end of 2018 and about 25 by 2023. the man is rather conservative in his outlook. putting the above in perspective may explain why U3O8 producers have not seen much of a rally as opposed to some developers/ explorers.