Each week I summarize my portfolio positions (outrights and options) and performance in a table:
In his engrossing 2013 report The Cloud Begins with Coal (sponsored by the National Mining Association and the American Coalition for Clean Coal Electricity), Mark Mills bludgeons us with one impressive description after another of the growing energy demand from the information infrastructure.
Concerning the planned listing of a stake in the Saudi Arabian Oil Co, here’s what we know:
Each week I will summarize my portfolio positions (outrights and options) and performance in a table:
Previously I vowed to dig into the strategic stockpiles of highly enriched uranium (HEU), a secondary source of the U235 isotope that competes with uranium miners such as Cameco. HEU can be down-blended into LEU by mixing with un-enriched uranium and processed into fuel rods. In a future post I will discuss a third-source of nuclear fuel: recycling.
Some days ago I opened length in Cameco (CCJ), the Canadian uranium processor, with an initial belief that they could sustain their dividends and ride out the trough in U3O8 prices. Uranium spot prices (as quoted by Ux Consulting) have fallen from $70 per pound in 2011 (pre-Fukushima disaster) to $19 per pound recently. Cameco doesn’t deliver at these low spot prices but holds utility customers to long-term (and more expensive) supply contracts. However, these customers would understandably like to renegotiate the level for the duration of their existing deals or threaten to find a new supplier when it is time to renew. In other words, the plunging spot price does effect revenue. Continue reading Cameco and the supply of Yellow Cake