good ann in a bad market, page-7

well rough numbers - PEN's cost per lb is around $30, but I'd say at least $40 feasable to start mining and pay real costs (eg. taxes, royalties).

ie. edit this example of PEN's PFS (I can't copy the presentation - page 23) http://www.pel.net.au/images/peninsul---aigeiyiela.pdf:

Revenue of 1.5mill lbs at $75/lb = 112million (100% recovery??)

Total costs, depreciation, taxes - $45 million = $67 mill profit

THEN take 30% company tax leave $47 million profit AT $75/lb



Change that sale price to $60 or less if thats where we're headed...


$90million revenue (100% recovery??) take $45mill costs leaves $45 mill profit

then take 30% tax = about $30 million profit.



There's your minimum 1/3 profit gone...

but you'd be fearing worse to come for uranium price. and again these figures seems to be talking 100% recovery, wheareas 80% is more realisic I read.


So my point remains, if Uranium goes to $40/lb, PEN will be unlikely to open a feasable mine, and the share price will be 4c tops again. So here's hoping price turns around soon...