A few interesting elements: U308 avg. conc. 0.06% (600ppm). Circa 18% of the annual revenue (at price unknown).
The U308 extraction is necessary to ensure low radioactivity in the Au-Ag-Cu metals produced at Olympic Dam.
However, the (expert) writer suggests that whilst the expanded production would increase all the activities associated with pulling the ore out the ground, milling etc, the export products to places like China/India would be Cu concentrate (then with moderate U308 conc) rather than processed metals onsite, so no added smelting capacity. Less value adding than before.....seems to be a constant thing in the resource sector in Australia.
So if OD does go ahead one day, it may well be in a way that does not provide directd potential U308 supply capacity to BHP (Australia), and will end up in China/India along with the Cu conc sale.
Food for thought......
PEN Price at posting:
3.0¢ Sentiment: LT Buy Disclosure: Held
