four mile east exploration target, page-12

IMO based on the recent concept study released by the company which indicated that production would max out at 4.5m pounds per year, I can't see AGS being valued at much more than $1.50ish.

Some very very rough numbers:

4.5m pounds x $75(possible longterm uranium price) = $338m Gross Revenue

Expected Cash Cost of $15 per pound leaves a Gross Profit of $60 per pound or $270m

Take out tax at 30% along with other expected costs such as financing costs and capital costs and you are probably left with $150m.

Use the current market average of 12 and you get a rough market value of around $1.8b.

AGS has a 25% share so that gives them a market cap of $450m ish.

That translates to around $1.60.

Much lower than the $4, $5, $6, etc that everyone was hoping for just a few months ago.

$2.80 last April/May is now looking like a good exit price ............

Any thoughts?