beverley capacity

Estimates seem to put production from B4M at early-mid 2008.

One thing about AGS that does play on my mind a bit is the eventual rerating of the shareprice when production commences.

At that point, surely AGS will be valued based on the cashflow that it is generating, rather than the current speculation/premium attached to simply being Australia's next U producer?

If this transpires, then the current capacity of the Beverley plant is approx 1000t pa. That would only give AGS about 250t pa, or, 550,000 lbs pa.

Admittedly if POU is at USD$100/lb at that point, cashflow generation of approx AUD$73million pa, which on a P/E of about 20 (conservative compared to PDN) would give a mkt cap of around $1.4Billion and assuming 300 million shares on offer would equate to a SP of around $4.66.

Therefore, given it's current pricing of around $2.20, there is some room to move, but not multiples of the current SP?

Possibly the P/E to be applied will be greater given the size of the resource, but the capacity of the Beverley plant is certainly an issue?