For those groups in the...

For those groups in the US...

http://seekingalpha.com/article/28727-isr-uranium-mining-reverses-the-creation-process

"Bill Boberg: There are probably thousands of uranium deposits throughout the world of varying quality in sandstones, which are also aquifers. Only a few hundred of these will contain sufficient uranium to eventually be mined. It?s there, and if it is mined, most of the uranium that was in the aquifer will actually be removed from the aquifer instead of staying there. The in situ [ISR] mining process simply reverses the natural process that placed the uranium there in the first place. It?s really a pretty simple process. The restoration process, after the mining is completed, actually returns the aquifer back to its pre-mining conditions. There is no way the aquifer is contaminated or destroyed (by ISR mining).

StockInterview: Many environmentalists claim that by removing the uranium, you are changing the aquifer. Is the aquifer much different than before mining took place?

Bill Boberg: It?s probably not a lot different. The formation of uranium deposits in the sandstones is a result of oxygenated ground waters that came from the surface, carrying uranium which is deposited when the oxygen is depleted or finally exhausted. The deposit is in place in the sandstone. As fresh oxygen is brought down to that point, it will re-dissolve and move the uranium further along."

PEN are not sprinkling/spraying cyandide and acid willy nilly in Wyoming!

@ trent37

So, you see less upside in the medium term for PEN than Sundance?

Interesting, let's assume a realistic P/E for a stock like PEN is 20. ok?

PEN owns 100% Wyoming, 74% Karoo.

From the Mining Indaba ppt on the PEN web site homepage (for easy reference).

Lance - estimated NPAT $47m (p24 ppt)

Now, that's on 1.5m lb pa. Double that (and more) for 3m lb pa = 94m p.a.

Now of course this imminent DFS may change the numbers (as one punter opines regularly without recourse to any substantive argument). imo, capex and opex may even fall slightly dependent on what capital contingency they in build and the vanadium credits. Expect the D & A charge to fall should we see a nice (m & i) resource increase. We'll see.

That is not the point - this is a ball park type exercise.

Karoo - $81m p.a. ($60m @ 74%)

Lance + Karoo = 60m + 94m = 154m.

154m x 20 PE = 3.08 billion

Divide by the share capital - you choose the number ok?

I could then argue that both Wyoming and Karoo could grow in size (as foreshadowed by numerous pen announcements) that production could be ramped up even higher. Then there's the obvious intent of PEN management to acquire additional properties (and the PALA facility in this regard).

Anyway, some will argue but this won't happen or the U price might not rise or whatever. That is to miss the point entirely.

We are talking about POTENTIAL and the ability of management to deliver on that potential. Very very simple proposition.

If you don't believe they can, don't be a shareholder. Another very simple proposition.

Finally, anyone who argues that Fukushima will cause other than a short term blip in the U price (long term contract price as the spot is largely irrelevant) is simply ignorant or naive about the very basics of supply and demand in this market. Full stop.