Thread by @SethSOTUS

If you havent watched #Cameco’s CFO, Grant Isaac's present talk with Canaccord Genuity, you should.

bit.ly/3CxJHRU

$CCJ #SPUT #Sputt #Uranium
Some of what I took away below:

-Glowing coverage of Sprott's Sput.
-New mines should not come online to sell into spot
-Japan's inventory is stationary.
-A couple of Utility RFPs in the market, let's see how they play out.
- "KAZ said their was little demand in 22-23" is a misquote.

- A producer sold term contracts at $45. Not a concern. BTW, it wasn't CCJ, it was probably a spot-exposed producer. Good that it's out of the way and not competing (it's a couple 100K pounds).

- Backwardation a concern? (utilities will sell spot from their term contracts) No, it's a drawdown of commercial inventory. It's self correcting, and good for a price recovery.

- Q: what do utilities think of SPUT?
A: some utilities weren't tracking Sprott at all, dismissed it as being $300M, or dismissed it as a future carry trade (both wrong). BL: impact of SPUT is underappreciated, and has not been fully realized. More to come...

- Q: Have utilities come to the table due to Sprott?
A: no, but not worrisome or surprising (didn't expect them so quickly) Good news is any future conversation has grown in value

-Q: is uranium in the hands of a financial player concerning?
A: this financial vehicle is different, and doesn't draw concern regarding flooding the market (Sprott has good track record in tightly holding silver and gold)

Q: Sprott might lend uranium. Thoughts?
A: lending is normal, (swaps etc), but lending is getting more difficult due to rules/regs

Q: what is the straw to bring utilities to the table?
A: driven by own calendars. Covid and broken supply chains continue to create delays. Will only drive price. Some are new players  and not familiar with upside. CCJ will be more responsive than competitive.

- Q: will you disclose contracted prices?
A: no. Confidentiality is not driven by the supply side, its the demand side. That said, the RFPs will be a big tell.

Now for $CCJ and recent debate from the weekend. 3 points.

1.  Overcontracted by design - nothing unusual. Risk management is key (ie carrying an inventory, very familiar to them).

2. McArthur Restart does not need to be feared. Would not have shut down only to destroy value (Market aligned strategy). Restart would be a very bullish signal, but remains in C&M. Will take 1.5 to 2 years. .

3. Contracting lessons have been learned, and approach is changed. Now, CCJ seeks value-capture (longer/higher potential curve). Not looking to capture a spike. Cannot capture it due to the sheer volume they need to move.

...These were just some of my notes, and I'm sure I missed plenty. Please give it a watch: bit.ly/3CxJHRU

And thanks to @cameconews, Grant Isaac, and Canaccord Genuity for this timely and insightful interview!
#uranium