back of the envelope base case valuation

Just looking at Firawa alone,17.7mt @ 300ppm = 12mlbs U.

Value per tonne of ore
one tonne of ore @ 300ppm produces ~0.5lbs of Uranium (75% recovery) which equates to 0.625lb U308. At current spot price($48lb)= $30pt revenue pt.

Opex (very rough and dirty)
The project area is on the side of a hill, positive relief of the hill and dip of mineralisation = low strip ratio ~1.1. Easy little resouce to mine, i'm told. This supports a degree of confidence in hitting a lower opex target.

All industry participants aim for <$30lb U308 LOM. Brad George has stated a target of $25lb U308 and PDN currently produces at around that level (higher strip ratio ~1.6:1). So in this example that equates to Opex of $15.60pt.

BMN scoping was at $40lb with a strip ratio of 3.5:1 FYI.

CAPEX
very rough guess for heap leach $30-50m.

Summary value- Gross free cash over a 5 year mine life is ~$250m. Knock out the CAPEX$50m up front and assume $40m pa free cash; NPV 5 years at 10% disc is approx $150m.

580m shares on issue = 26c fully priced, but risk this by 70% = 7.7c......

You can follow my logic and judge for yourself whether i'm being conservative/optimistic.

The mkt is down on U stocks, FTE has disappointed a lot of people with the delays and underwhelming BEN JORC etc but
add back in;
- easy potential to upgrade Firawa resource 2 or 3 times.
- all the free exploration potential of Mauritania
- and rising U price..

FTE is at very compelling BUY levels.

Please feel free to pick my analysis apart. regards FM