Share price targets 27c, 25c, 21c

Anatolia Energy's Paul Cronin talks high grade uranium at One2One Luncheon

Wednesday, March 18, 2015 by Proactive Investors

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Anatolia Energy is focused on the Temrezli ISR Uranium Project in Turkey which is approaching development.
Anatolia Energy (ASX:AEK) is focused on the Temrezli ISR Uranium Project in Turkey which is approaching development.

The project is a high-grade uranium mining opportunity, with production targeted for 2016.

Achievement of the forecast operating costs would make Anatolia one of the lowest cost uranium producers globally.

Its low cost structure underpins strong cashflow, even during times of depressed uranium prices.


Paul Cronin, managing director, met with investors this week at Proactive's Sydney One2One Luncheon.

ACCESS FULL PRESENTATION HERE


Pre Feasibility demonstrates a robust project:

- 12 year initial life of mine, producing average of 0.8Mlbpa U308.
- Free cash flow US$ 345.5 million.
- Cash cost US$16.89/lb U308.
- Upfront CAPEX US$41.0 million.
- Pre-Tax NPV(8%) US$ 191.1 million.
- Pre-Tax IRR 65%.

First uranium production to be achieved through initial capital of only US$41 million, plus US$7.5 million in working capital.

There is the potential to reduce upfront capital costs expected from the use of local suppliers. Detailed plant design underway – targeting 20-30% capital cost reduction.

Existing local infrastructure at project site, including sealed roads and power lines across the production boundary. There is no requirement for deep disposal wells at site results in large capital cost saving relative to many other ISR operations.


Share price targets

Proactive Investors has calculated a valuation and equivalent share price target for Anatolia of $0.22 to $0.27 within 12 months.

Dundee Capital Market has a price target of $0.25.

Hartleys has a price target of $0.21.

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