capex and opex_benefits of isr and lance, page-53

G'day Mick, You may or may not be right.

The contrarian in me tends to think the opposite will occur. In fact I am almost certainit will.

Nuclear energy is going to happen, regardless of BMN, PNN or another mine. Nuclear plants are being and are going to be built, there is nothing to the contrary regarding that reality. They will need uranium, plain and simple.

So there will be demand and (some) miners are for the short term dropping off, at a long term contract price of US$61/lb. There is only one ISL mine dropping out and it is due to sulphuric acid cost and supply, not hte uranium price.

PEN at Lance will be unaffected by either of these aspects, provided the PFS displays around what is already indicated. There is no reson to believe it will deviate largely from the estimates as they were based on existing similar ISR mines.

I believe PEN will be a beneficiary of this. For the simple reason money will be looking for a home in the U sector as the demand for uranium picks up.

None of the forecasts have taken into account the latest prospective and in production miners dropping off. That being the case the demand for uranium will be more than first thought, or at least earlier in the demand curve.

I am very comfortable with PEN, even more so now my thoughts over the last couple of years is now coming to fruition. ISR will win over conventional mines, purely based on cold hard economic and financial viability. PEN has just been de-risked.