Keep your eyes on the fundamentals, not just the VMY, PDN or BOE of this world!
The realised price chart below is why I reckon Kazatomprom will allow the spot price to drift upward in the months ahead, purely aligned to spot prices in the years ahead, and with no changes in output until the end of C2023, it is all about realised prices rather than volumes.
It's only as they approach the US$70/lb mark that the ceiling clauses of their existing contracts start to bite... Vimy will have locked in funding for the project long before that.
Company-wise, once the market realises that approvals are in the bag, it will be very hard for VMY to remain at a discount to BMN or DYL in terms of market cap/NAV, given the much higher quality of the Mulga Rock project.
Mulga will get the go-ahead at US$55/lb while DYL will still finalise a DFS and secure its mining lease in early 2023. As for BMN, it will wait to see prices north of US$70/lb before pressing the FID button.
Happy days VMY ahead.
VMY Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
