AEE 0.00% 14.0¢ aura energy limited

Read this for NPV calculation...

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    Read this for NPV calculation https://www.pngminers.com/2016/03/determining-net-present-value-npv.html

    In essence it's an assessment of cashflows over life of mine, and a summary of the total extracted value of the deposit in cash terms.

    Some things are known from the DFS such as "all in sustaining cost", capital cost for plant and machinery.
    Some things are forecast such as the sales price / lb of U308. This future price risk can be mitigated by offtake contracts at that price. The upside is higher prices than forecast.
    A discount factor is used to account for unknowns and risks; typically 8% for each year further out from the calculation point.

    From memory I think the forecast price for U308 was $65/lb in the DFS, and if that delivers $20/lb in profit, then an $85/lb price doubles the profit.
    It's this leverage that is really exciting in the coming U bull market. If we achieve $200/lb like some spectators and commentators speculate, then any Uranium related activity will have valuations off the charts.

    I believe prior to the last big bull run starting in 2005 there were only 20 odd development companies in the space, and 3yrs later there were 500.
    Everyone wanted a piece of the action.

    And the elephant in the room is Haggan; if that comes into play then Aura has a NPV something of the order of several Billion dollars.
    Share prices could move from 10's of cents to $5-10 within a few years.



 
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