How Is the Weekly Uranium Price Calculated?

Trading in the uranium market is done by a veryyour weekly spot uranium price?
small number of players. After all, there are aboutJeff Combs: We have a pretty specific definition.
440 nuclear reactors worldwide, a few dozenWhat we're looking for is the lowest offer of
trading firms, fuel managers, and a relatively smallwhich we are aware, at around the time we
number of utilities who participate in the actualpublish the price. The quantity being offered has
buying of uranium. It's the front end of theto meet certain parameters. It has to be a
nuclear fuel cycle. Without it, nuclear reactors shutcertain size transaction within a certain timeframe.
down. The uranium price has been skyrocketingSo we're not really trying to cover transactions,
since Christmas week 2000, with no end in sight.per se. Obviously, where there is a transaction
Forecasts range from $50/pound to well abovethat takes place, there's an offer embodied in
$100/pound. Few believe the spot uranium pricethat. We're really trying to capture where the
will go lower in the near future.market is going based on current offers, rather
It's become a fun game. Every Tuesday nightthan where it has been.
(Monday afternoon, if you are a subscriber to theStockInterview: So is your published spot price
Ux Consulting), you will see the spot uranium pricemore of a predictor than an actual trade?
posted on the company's front webpage.Jeff Combs: It's a predictor only in the sense that
Moments later, the Yahoo and other Internet chatthe next deal is likely to be done at the lowest
boards light up with commentary about theoffer price if the market is working efficiently. It's
current uranium price and where it might headlike in the stock market where the lowest offer
next. The spoiler is that TradeTech LLC issues itsprice will be taken first, although the stock market
spot uranium price on Friday to subscribers and tois a lot more efficient than the uranium market.
the general public on Sunday night. Investors haveThus, we aren't predicting the price of the next
been betting on the price swings of their favoritedeal per se, but reporting the lowest offer price,
junior uranium stocks (more leverage, more riskwhich is an indication of where the sell side of the
reward) by trying to second-guess the uraniummarket is at that point in time.
spot price. Now, you can find out exactly how UxStockInterview: So the weekly published spot
C arrives at their weekly spot uranium price, fromuranium price is not based upon an actual sale of
the president of Ux C, himself: Jeff Combs.uranium that took place that past week?
StockInterview: How does Ux Consulting arrive at