Investment thesis, page-4

This is my opening investment thesis which I am now comfortable with based on what has recently been published and more importantly what the directors and MG have said and their enthusiasm at the recent AGM. I am now confident that the SLX laser technology will be successfully deployed in the very near future. It has been significantly de-risked. Here is my evidence to back this up
Clay Montgomery one of my favourite uranium commentators recently posted this (I have highlighted the significant statement that he makes).

@ClayDMontgomery

Canaccord Genuity is now covering Silex, which is remarkable for a laser enrichment start-up with only a $478 million market cap. Silex's GLE partnership with Cameco will receive an off-take contract from the DoE in early 2024, which will launch their construction of PLEF 1, to produce "natural" grade UF6 equivalent to U308 at an all-in cost of $25/lb, starting in 2027, 5 million lbs/year for 30 years. GLE will be the largest/only recycler of UF6 in the Americas and also build PLEF 2 to produce the LEU feedstock for HALEU.

SLX announced in their annual report that they had entered into a lease of some 55000 sq ft within the GE uranium high security fortress at Wilmington. That is a huge building and is a significant commitment that they would not have made if they were not absolutely sure that there was little or no risk going forward.

At best my calculations can only be classed as informed opinion and at worst they are totally rubbish. You make up your own mind.
Inputs. Tails re-enrichment
Production from tails 5 million pound per annum.
Price for UF6 20 October 2023 US $69 per LB
Cost to process as per MG disclosure at 2023 AGM $25 per LB.
SLX royalty 7% minimum but could be much higher up to 12%.

5,000,000lb UF6 x $69 = $345,000,000
Processing cost 5,000,000 x $25 = $125,000,000
Nett earnings $220,000,000
SLX 51% interest $ 112,200,000
Royalty $345,000,000 x 7% $ 24,150,000
SLX profit $ 136,350,000


Total return
Q. How much will CCJ pay for a 26% share of GLE under the call option.

I am going to conjecture a multiple of GLE’s net earnings say 5 times. My guess is that it could be somewhere between 3 and 8 times of nett earnings
Nett earnings $220,000,000 x 5 = $1,100,000,000
26% share = $ 286,000,000

∴ $286,000,000 + $136,350,000 = $ 422,350,000
Divided by shares on issue 235,946,075 = $US1.79 forward earnings per share or A$2.67

On a PE of 12 this would value SLX at $32.04 per share.
There is potential for the SP to go much higher than this because the above estimates are only based on the re-enrichment of tails PLEF 1. PLEF 2is already in the planning stages and will follow on fairly quickly. PLEF 3 which will produce HALEU may be up to 10 years away.
Then there is also Silicon and medical isotopes. In 5 years time I could easily see the SP at $50 plus such is the enormous potential.
What say you? Am I dreaming, wishful thinking or maybe just onto something?