interesting comparison

Interesting comparison:

Just thinking about things while posting on the URANIUM forum:

FMG 40MT/yr x $60/T ($100/T- $40/T costs) = $2.4billion/Yr profit
MC = $14 Billion. PE = 6 and still a way off production, if apply NPV then PE about 8.

MMX 25MT/yr/2 = 12.5MT/YR. * $60/T profit = $750m profit/yr.
MC = $2 billion. PE = 3, apply NPV and PE about 5-6

BMN 8 mil lb/yr * $80/lb ($120/lb - $40/lb costs) = $0.6 billion a year profit in three years time.
MC = $392 million (one 35th of FMG)

PE = 0.6, apply NPV PE = 1 !!!!!!!!!!!!!!!!

MTN 4mil lb/yr*$80/lb profit (at $120/lb) = $300m profit/yr in 3 years time (ISL extraction).
MC = $200m (one 70th of FMG)
PE = 0.6, adjust for NPV, PE = 1 !!!!!!!!!!!!!!!!!

Of course MTN and BMN still have large capex required so if you allow 100% dilution PE after NPV is still about 2.

Hmm - there is a massive re-rating potential here!

U bull market will return when the northern winter sets in, U demand increases.

Note that the US is now down to their strategic reserve of U and is not going to sell large amounts in future (520,000 lb just sold is a drop in the ocean). Russia is almost out of it's stockpile which will be exhausted in 2011 when it's agreement with the US for it's mixed-down weapons grade supply is exhausted (currently supplying 20m lb/yr to US), and Russia want to buy from Aust (and become a nett importer).

Demand is increasing.

Supply is only slowly increasing.

U price will be peaking soon after MTN and BMN are likely to be producing, and when CUY is in full swing.

Value of these QUALITY companies (unlike the multitude of cr@p U specs) will re-rate to about 5-10 times what it is now!