Additional Uranium Sales Contract, page-56

LC Look at it this way- back of envelope mathmatics

500,000 pounds of production per annum at an average of $60 (based on contracts at this stage of 1 mill at $71 and 1 mill at $50) gives us annual revenue of $30 million - less total production costs per pound of $28 leaves us with a pre-tax profit per pound of $32
$60 l/b sale price - $28(total production cost) = $32 l/b (pre tax)

500,000 x $60l/b = $30mil revenue per annum - $28 (total production cost) = $14,000,000 pre- tax profit per annum

Bearing in mind the cost of stage 1 is $33 million so it has to be 500,000 to 700,000 l/bs production per annum to make it viable for the lenders

cheers Schu