U Grade is the key.
1500PPM is a huge upgrade from the numbers quoted in the PFS back in 2015, so I am expecting a very robust DFS on the back of this. Also of interest will be the by product credits. There is a substantial amount of nickel , cobalt , zinc in the Mulga Rock deposit as stated in the PFS and these products prices have risen substantially in the last few years since the pfs, particularly cobalt and zinc. this will be the cream on top of the high grade U production. Hopefully we get some news in the quarterly regarding any offtake talks.
With nuclear utilities fuel requirements apparently 40% uncovered for 2020, I expect these utilities will be entering discussions very soon, and not waiting until the last minute to lock in there contracts, especially in light of Cameco and Kazatomproms production cuts, uranium price is only going to go up the longer they wait. VMY may have timed this to perfection in that regard.
cheers
Cheers
VMY Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
