Morning Guys, I just read this Cormark Report from several days...

Morning Guys,

I just read this Cormark Report from several days ago (below). This is now the fourth time I have read/ heard that McArthur River may be "sustainably closed". Cormark even put a date of August for this decision to allow enough time for LT closure actions and redundancies to be worked through.

I have made my own notes and underlined certain parts below.

In short, I think it would be a good idea to be positioned prior to August and a possible announcement by Cameco. The downside, if it restarts, is minimal as it will only restart if U prices have much higher than right now, and the upside of a "sustained closure" announcement is that it would be a major catalyst for that U price re-rating as all analyst/ utility models would move from 2019 having a slight surplus to a MAJOR deficit.

Any such announcement would also embolden the SPV's to put the hammer down in terms of raising funds and buying up all the U that they possibly can. This will also be supported by the major producers who, it is now clear, are working together to tighten the market (i.e. Yellowcake buyinging from Kazatomprom and storing it at Cameco Facilities).

Cheers
John