Thread by @BambroughKevin

“Gitzel said approximately 1000 people were affected by the shutdown.
He explained that once satisfactory purchase contracts are in place for McArthur River uranium, it may take one-year to 18-months to restart production.” mbcradio.com/2020/12/no-imm…

I ain’t afraid of the Mcarthur River restart as far as uranium price goes for the next 2 years.

You can bet when Cameco laid off 1000 people 4-5 years ago they would have kept the best and offered older employees early retirement

Point being it will be more difficult than the market thinks to hire 1000 work in a market where skilled mining labour is hard to come by globally. Hire and train then commission. It’s also not a ‘simple’ mining project

$cco and $ccj shareholders betting on a quick $200/lb run should be modeling what would happen if during the 18months to 2 years that Cameco says it will take to restart the price spikes to $100 or $200/lb and they have to deliver into low price contracts

Losses could rack up quickly. #UraniumSqueeze might squeeze more than just utilities. Who love to see this modelled. Perhaps they will have enough upside on the cigar contracts with margin to offset

I admit I don’t know the exact numbers but I do know it will effect there upside relative to those with out bear market legacy contracts. I’m 100% honest when I tell you I’m not short cco or a single uranium stock.

I bring this up only cause I think a lot of uranium newbies are running on have no clue what they are doing and primarily betting on $ccj cause they think it will ripe if $u.un take uranium to $200/lb I think $u.un and. Basket of junior miners is a better bet. $urnm example etf

Anyhow don’t shoot me for asking the question. I bet a bunch of mining analysts will be asking this of Cameco over the next few days and modeling the scenario as best they can. We will get this answered.

For us non-Cameco owning uranium bulls. Rest assured this is good news. Cause Cameco has lots of cash on its balance sheet and perhaps some of the recent spike is them buying lbs. I bet they crapped themselves when sput filed for $1.3bln and maybe buying

Also be prepared for them more talk of Mcarthur restarts and try to talk down the market and buy time to get more spot lbs.

They may say 18-24 months. I think most of us would bet it will be longer not shorter do to all the logistics involved and covid backlogs everywhere already

1000+ workforce gone 90% took severance. Small town, sold homes, went to oil and gas, potash and commercial fishing

cbc.ca/news/canada/sa…

Sounds to me like the hiring and training process could take a long time. You have to actually convince people to move local and provide them long term stability. I would think this decision will need a lot of solid contracts from utilities to make it happen