is also necessarily influenced by their size and financial condition, and this in turn varies widely. Some of the companies in the industry must depend entirely on the cash flow from uranium while others that are larger and more diversified can divert cash flow from other operations into their uranium activities. As we make the transition to a market dominated by a demand for uranium for peaceful pursuits we must recognize that we are now part of the nuclear energy industry. We are the raw material branch of that industry but our ability to compete will be influenced by the performance of all other components of this industry who play a significant part in delivering to the public utilities all the factors necessary to produce power by nuclear means. We must never forget that we are in competition with all other forms of energy. I suggest to you that the game is changing. Selling our output to the A. E. C. is a different problem than selling to a multitude of civilian customers. The Government could set prices arbitrarily at whatever level was required to obtain the quantity needed for its purposes. Now competition will set prices based in part on the supply-demand relationship within the uranium industry, but importantly also on the ability of the nuclear plants to compete with conventional thermal plants. Nor is price the only factor involved. The utility industry is not going to invest billions of dollars in nuclearfired facilities without reasonable assurance that uranium will be available in adequate quantitie -6-