Thread by @quakes99

Very long Conference Call today & huge volume of interest. Upshot is Cigar Lake will restart in September if they can get workers & #COVID19 allows. They remind investors that none of Cigar's #Uranium production goes to Spot market, all goes to fill existing contracts.

https://twitter.com/cameconews/status/1288431012070821894

If Cigar Lake can be restarted safely, 1st 2 weeks Sept for maintenance, production ramp up starting mid-Sept. $CCO 2020 Guidance 5.3M lbs #U3O8. Still heavy Spot #uranium buying required in H2 & will begin buying for 2021 needs too. McArthur/Key remaining offline indefinitely.

Cameco $CCO remains heavily reliant on market purchases to meet delivery commitments in 2020/2021. Cigar Lake restart lbs already committed to contracts, adding no supply to Spot market. Inkai lbs from #Kazakhstan remains an unknown. At least 20M lbs #COVID19 global supply drop.

None of lost #COVID19 production will be made up. Have seen emerging demand but utilities focused on Russian Suspension Agreement as biggest issue with 5 October deadline for deal with Russia else US duties kick in. Utilities expected to increase Spot buying & contracting in H2.

Market response to Cameco $CCO news is to sell down sector tho restart of Cigar Lake does not fix huge structural supply deficit or increase mobile Spot lbs. #Uranium Spot brokers show no change so far to Bids/Asks. Spot price expected to hold at current level & go higher.

Decision to try to restart Cigar mine, if #COVID19 allows, due to many factors as well as economics. Expected continuation of Spot #Uranium price plateau in $30's+ meant Spot buying more expensive than production given high C&M costs. Higher spot = more LT contracting interest.

Sorry folks but there's a huge volume of info to process from the call. I could post all day on the many points raised. Risk to supply continues to far outweigh risk to demand. RSA, Iran Waivers, #COVID19 all add to growing #Uranium supply risk while #Nuclear fuel demand rising🐂