Scope of work includes:

  • Engineering studies.
  • Calculation of costs, monitoring of costs.
  • Supervision of project and documentation.
  • Environmental engineering consultancy services.


PGE EJ 1 spółka z ograniczoną odpowiedzialnością

ul. Mysia 2

Contact: PGE EJ 1 spółka z ograniczoną odpowiedzialnością

Attn: Jarosław Jaczyński

00-496 Warszawa


Tel. +48 223401294


Fax +48 223401041

Application language: Polish

Service contract – 40548-2011

Price sensitivity analysis: Uranium (see table 2)

Expected Realized Uranium Price Sensitivity Under Various Spot Price Assumptions

The table is not a forecast of prices we expect to receive. The prices we actually realize will be different from the prices shown in the table.

It is designed to indicate how the portfolio of long-term contracts we had in place on December 31, 2010 would respond to different spot prices. In other words, we would realize these prices only if the contract portfolio remained the same as it was on December 31, 2010, and none of the assumptions we list below change.

It has been updated to reflect deliveries made and contracts entered into up to December 31, 2010.

Our portfolio includes a mix of fixed-price and market-price contracts, which we target at a 40:60 ratio. We signed many of our current contracts in 2003 to 2005, when market prices were low ($11 to $31 (US)). Those that are fixed at lower prices or have low ceiling prices will yield prices that are lower than current market prices. These older contracts are beginning to expire, and we are starting to deliver into more favourably priced contracts.

Our portfolio is affected by more than just the spot price. We made the following assumptions (which are not forecasts) to create the table:


* sales volume on average of 32 million pounds per year


* customers take the maximum quantity allowed under each contract (unless they have already provided a delivery notice indicating they will take less)
* we defer a portion of deliveries under existing contracts for 2011 and 2012


* the average long-term price indicator is the same as the average spot price for the entire year (a simplified approach for this purpose only). Since 1996, the long-term price indicator has averaged 13% higher than the spot price. This differential has varied significantly. Assuming the long-term price is at a premium to spot, the prices in the table will be higher.
* we deliver all volumes that we don’t have contracts for at the spot price for each scenario


* is 2.0% per year


Current forecast (million lbs U3O8)
Expected Realized Uranium Price Sensitivity Under Various Spot Price Assumptions. Spot prices ($US/lb U3O8)