The implications of today's announcement are important. The 5tph unit appears to be powerful enough to operate as a 10tph-15tph unit, (depending on ore specs). This suggests to me that the cost to build commercial scale units, (say 20tph-50tph) will be less than previously thought, making profitability at the BLR/Ablation JV higher. The company's unit is not, "semi-commercial" scale, it's arguably commercial scale. That means scale-up risks have been significantly diminished.
This confirmatory news paves the way for Build, Own and Operate contracts with uranium producers. I think there's a good chance that a contract will be signed, (maybe a LOI or MOU) before the February share placement. If a contract is with a Major like Cameco, ARMZ, Areva or Rio, the contract could of course be for multiple units. Perhaps a contract would be for 5 units, contingent upon the 1st delivered unit performing as advertised. Exciting times.
On top of this, underlying fundamentals in uranium are showing signs of turning. France is not bailing out on Nuclear power, both Kazakhstan & Russia are halting uranium production growth plans and the spot price is up modestly.
Also noteworthy in my mind is that the world is clearly coming down hard on coal fired electricity lately. Many global organizations like the UN and World Bank are saying no more funding for new coal plants.
Some of that funding will be diverted to wind and solar, but some will certainly go to nuclear as well. The stars are aligning for BLR. Traders should be careful being out of this stock in case a contract is announced. Again, it could be a LOI or MOU, which would be announced before a final contract is signed.
All of this BEFORE Alex and Mike have even started the global roadshow with these robust results in hand. Clearly some very good news here. Congrats to the BLR/Ablation team!
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