Tombola Thanks for the article. The most interesting part for me...

Tombola
Thanks for the article. The most interesting part for me is two key figures
One - the Chinese have paid 8 dollars a pound for Matra reserve/ resource. This would value Rand uranium resource at 270 million usd.
The second key number is the long term price of uranium is 72 dollars per pound. Seems as though on a long term contract rand uranium assets cod be developed with the previous CEO described it as a great project
At 65.
I have been reading many reports on the price projections of uranium with most predicting the massive construction of plants now and those in the pipeline will cause prices to go to 100 plus. What very important to note that a strong future Uranium price will continue to push the price down on the gold cash costs. The stronger the uprice the lower the effective cost of gold peoduction. If one believes the uranium price will head north , the rand acquisition starts looking very very attractive.

I believe the Chinese are looking at future global demand and supply and making investments now to lock in supply for when
They need it most 3-6 years away and ongoing. Another article I read last night highlighted that Uranium costs are approx 2 percent of the overall cost of building and running a nuclear plant so prices doubling will be insignificant. Demand is very price inelastic.