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20/01/19
22:13
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Originally posted by joca:
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Hi bought back in recently after losing a heap on this in its previous life . What sent the company almost to the wall last time was not locking in LT Uranium price contracts when the price was high and relying on the falling spot price. If the Uranium price did get to say $50 / lb would they lock in some LT supply contracts or do they take a punt on the spot price again. Not to sure how all this uranium pricing works but thinking similiar to the way gold miners hedge gold.
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Cameco - 'Our portfolio includes a mix of fixed-price and market-related contracts, which we target at a 40:60 ratio. Those that are fixed at higher prices or have high floor prices will yield prices that are higher than current market prices.'https://www.cameco.com/invest/markets/uranium-price-sensitivity also there can be variable factors in determining a final price to supply a contract, ie a percentage of spot incorporated, volume options etc.