We know that Energy Fuels mothbolled Sunday when the uranium price was quite a bit higher than it is now (especially when you consider that in todays dollars), therefore Sunday has a breakeven north of $50/lb.
In saying that I'm assuming two things, firstly WUC would have lower overhead costs than Energy Fuels, and second it is six years on. The two things may cancel each other out.
Therefore, one of two things have to happen.
1) WUC gets Ablation over the regulatory hurdles and uses it to make Sunday profitable.
2) Uranium prices go north (quickly) to about $70/lb making the mine profitable.
But, before any of that can happen, WUC need to secure their finances. I would have thought that selling some equity to the utility they signed up might be a way forward, but alas silence. It's been over six weeks since the offer launched and we've heard nada. That is a bit concerning.
BLR Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
