Can someone check my math?
20tph unit equals...
480t per day
14,400t per month
5,184,000t per year, (assumed 360 days)
The 20tph unit is designed for 24/7 operation. Assuming 80% utilization over the course of a year, that's 4,147,200t processed.
At 0.1% grade uranium, (1,000ppm), each ton = 2 pounds of uranium.
I think that the BLR/Ablation JV could earn a NET PROFIT of $5.0-$7.5 per ton of processed (0.1% ore). The higher the grade, the more they could charge for the service.
For example, if they charged $10 per ton for processing, that's 10% of the gross value of the 2 pounds of uranium per ton of processed ore, (assuming $50 per pound uranium price).
Therefore, a 20tph unit at 80% utilization could generate 4,147,200t x $5 per ton = about $20 million per year of net profit.
If a 20tph unit is deployed for 10 years at a single mine, that would be $200 million of lifetime NET PROFIT for a single 20tph unit.
BLR and Ablation may not end up controling this technology. Think of what Cameco could do with this. Instead of 1 or 2 20tph units in 2014 at the earliest, Cameco could double or triple the production rate of 20tph (or larger) Ablation units.
On a NPV basis, each 20tph unit could be worth $100 million. A single order of a 20tph unit, which I still think could happen this year, is a company maker for BLR.
Anyone have any thoughts on this? Thanks.
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