@zogI do sympathise with some of the points you’ve raised in...

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18/01/19

23:39

Post #: 37161481
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Originally posted by zog: ↑

I have been reading the following link

End of UK's nuclear dream?

This poses the very real threat that new nuclear power stations (on which SLX depends for an improvement in uranium price) are too expensive and since the capex is a "bet your company" decision then few are willing to embark on it without their government underpinning the project in some form or other. This currently appears to be leaving the way open to the Chinese (who appear willing to take the risk). Very clear to me that SLX are gambling on the price of uranium increasing due base load increasing (I think Electric vehicles will increase base load), the life of existing nuclear power stations being extended and SMR's coming to the rescue in 2025 - 2030 to sustain the future. I also hope that in the US they will concern themselves with the national security issue of passing the technology lead over to the Chinese and Russians. One thing is however certain and that is that for nuclear power to be successful (whilst we have gas) it MUST reduce it's unit costs and become affordable to private industry at an acceptable risk; hope seems to be depend upon SMR's being successful and the anti-nuclear lobby belatedly realizing that reduction in CO2 and other pollutants is the objective and has to be affordable without risking electricity supply during prolonged periods of bad (or very calm/cloudy) weather and long nights. This will entail taking into account not just the unit costs of generating electricity (from renewables) but also the costs (including amortized capex) of sustaining usually idle back up generation so as to secure electricity supply when renewable are not generating (or at least producing insufficent electricity); hopefully SMR's will come to the rescue before all the expertise is in the hands of the Russian/Chinese and experienced people in the west have retired or died.

SLX has to hope that stable isotopes (with government money) and IQE royalties will fill the gap and that GLE stays in business after being restructured with a commercially bankable commitment with the DoE over Paducah tails in a commercially viable uranium market - it's a significant risk!!

My biggest concern is that we have about 12 months before this all comes to the boil (i.e we have cash) and that by next years AGM SLX need to either have a path forward or liquidate the company (and monetarize the IQE royalty stream). As I see it right now the asset backing of our share is about 25c/share with a market price of 16c/share - I would like to see a future by the next AGM or get my money back - I can't do this on market due to insuffient liquidity.

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@zog

I do sympathise with some of the points you’ve raised in your post, but I am not following this particular bit:

My biggest concern is that we have about 12 months before this all comes to the boil (i.e we have cash)

As of November 30th 2018, SLX had 29m$ in cash (before even counting in the value of the IQE shares) and the current cash burn rate is (by my own estimates) within 5m$ pa.

So, am I way off the mark by saying that in 12 months, whatever happens, there will still be ~24m$ in cash, plus the IQE shares?

SLX Price at posting: 16.0¢ Sentiment: Hold Disclosure: Held
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