# Uranium Mining stocks: URG and CCJ



## Keyboardkowboy (Apr 18, 2014)

Is anyone else on the forum bullish on how the Uranium miners will do this year and the next? The spot price of uranium is pretty low at around $32.00 right now, but it seems like producers can and do sell their metals at higher contracted prices. Eg. URG has sold something like 40% of their Uranium last year at above $60/lb, and will sell about the same at the $60/lb range.

Not sure about Cameco but they have longer term contracts in China in the $50/lb range. 

Maybe it's just a matter of time until people realize the spot price isn't all it's cracked up to be, and can change drastically at any moment.


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## rknigh2 (Jun 5, 2012)

Yes it's a double edged sword.

The healthy companies have contracts significantly higher than the current spot prices, but there is a significant lack of supply (especially if Japan turns the lights back on). If the spot prices get back up into the 70-80 range, those long term contracts don't seem quite as smart. Timing is everything - and there is some extreme leverage on the spot-priced producers right now if you believe spot prices will jump over the next 12 months.

The one interesting note is the fact that the contract buyers are willing to pay a 70-100% premium to lock in longer term supply - i.e. the buyers definitely believe these spot prices won't last forever.

Looking at CCJ, DNN, UEC - especially with the drop over the last few weeks.


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## Keyboardkowboy (Apr 18, 2014)

Cameco just said in their recent earnings report that their customers are well supplied at the moment, and they don't see any catalysts for a price increase in the Uranium spot price in the near to mid-term. This morning I checked the spot price and it's now sitting at $30. 

However, I think given the way things are going in Ukraine gas prices will get pushed up which will put more pressure on Japan to restart their reactors.


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