question, page-31

For memory they have always been considered too expensive to build. Yet the applications keep coming in. I know what you mean though. $40 lb in years to come, who knows, alot of things can happen between now and then. But at least they have a clear price advantage of getting it out of the ground compared to some others, so thats got to be a positive for them.

As far as numbers go, and I am no expert and could very well be way off, but in their presentation they were working on a revenue of $65 lb which at a production of 1.5 million lbs a year, gives them 98 million and after total costs were taken off they were left with a gross margin of 42 million.

So hyperthetically working on a revenue of $40 lb, would give them 60 million and after total costs they would end up with a gross margin of 17 million.

As I said I could be wrong, and probably no doubt am, but the short answer to your question is yes, imo they can make profits from that figure. It wouldnt want to go much lower than that though. I have no doubt that Gus himself would be the right person to ask that question. If you do happen to ask him, let us know, as it is a good question in these uncertain times.

Cheers NK