Uranium, page-23

Copy from a BOE post about BHP U308.

I hold BHP as a Long Term hold, a hedge and also as a U308 stock. For years Olympic dam which is one of the biggest u308 resources in the world has seen little if any mention by BHP. Today's BHP report has 9 mentions! One says they expect/assume USD$80lbs and another states ".Uranium and silver grades are currently considered to be sub-economic and are therefore not reported as part of the Mineral Resource."

BHPs statement is gold in my view! IF BHP is for real then the incentive price to drive more U308 mining is significantly above the current spot and LT pricing

They also for the first time disclosed the price they received/sold U308 for "xviii The pathway to increase potential production at Copper South Australia is subject to the development of an integrated asset plan, regulatory approvals,
market capacity and, in certain cases, the development of exploration assets, which factors are uncertain. The pathway represents our current aspiration for Copper South Australia, and is not intended to be a projection, forecast or production target. Copper equivalent production includes potential increases in production rates and contribution from co-products, as well as potential impacts from our exploration program. Copper equivalent production is calculated using 2024 long term (real) consensus prices as at June 2024 of US$4.50/lb for copper, US$1,819/oz for gold, US$23/oz for silver andUS$64/lb for uranium."

I could not find volume or the 2023 price which were mixed or hidden in the copper volumes when I asked BHP! What is clear is with KAP cannot ramp up due to Sulfuric acid shortages and Cameco won't restart some suspended operations until required incentive price and long-term contracts are signed to take the u308!

New bits relative to U308 LT pricing thoughts- NextGen is 2030ish and when it starts many of the existing mines will be ended or ending so its not going to see a U308 price crash. What Price changes BHPs view that "Uranium .... grades are currently considered to be sub-economic" is still a pending question for the 2024 $ Half a billion contribution to revenue from by-product U308 is currently for BHP at Olympic dam before we consider other unexploited U308 resources BHP holds.