BLR 0.00% 0.2¢ black range minerals limited

estimated 20tph unit economics

  1. 235 Posts.
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    Can someone check my math?

    20tph unit equals...
    480t per day
    14,400t per month
    5,184,000t per year, (assumed 360 days)

    The 20tph unit is designed for 24/7 operation. Assuming 80% utilization over the course of a year, that's 4,147,200t processed.

    At 0.1% grade uranium, (1,000ppm), each ton = 2 pounds of uranium.

    I think that the BLR/Ablation JV could earn a NET PROFIT of $5.0-$7.5 per ton of processed (0.1% ore). The higher the grade, the more they could charge for the service.

    For example, if they charged $10 per ton for processing, that's 10% of the gross value of the 2 pounds of uranium per ton of processed ore, (assuming $50 per pound uranium price).

    Therefore, a 20tph unit at 80% utilization could generate 4,147,200t x $5 per ton = about $20 million per year of net profit.

    If a 20tph unit is deployed for 10 years at a single mine, that would be $200 million of lifetime NET PROFIT for a single 20tph unit.

    BLR and Ablation may not end up controling this technology. Think of what Cameco could do with this. Instead of 1 or 2 20tph units in 2014 at the earliest, Cameco could double or triple the production rate of 20tph (or larger) Ablation units.

    On a NPV basis, each 20tph unit could be worth $100 million. A single order of a 20tph unit, which I still think could happen this year, is a company maker for BLR.

    Anyone have any thoughts on this? Thanks.
 
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