foxdavies analysis, page-2

I struggled to open so just in case here is main text - Thanks for the post IMAX .

Scoping Study completed on Häggån uranium property
BUY recommendation maintained
Event
Aura Energy has released the results of the scoping study for the Häggån uranium project in Sweden. The study confirms the economic viability of the project as a bioheap leach project. It gives a net present value, pre-tax of US$1,090M at a 10% discount rate.
Comment
There are a significant number of changes to the assumptions that we used in our initiation report. The key changes are that the project has increased from a 20Mt pa operation to a 30Mt pa operation and the production of zinc metal is no longer included. Despite the increase in throughput, forecast capital costs have dropped from our forecast of US$900M to US$769M. The plan is based around producing 6.6M lbs of uranium, 14.8M lbs of nickel and 3.6M lbs of molybdenum annually. With a low stripping ratio of 0.75:1, a bio heapleach, operating costs are forecast to be extremely low at US$8.1/t, resulting in a cash production price of US$36/lb for uranium after by-product credits.
There remains excellent potential to raise the recoveries for uranium and molybdenum. Further, whilst our model is based on the new scoping study, we are using a significantly higher long term nickel price, US$9.50/lb as compared with US$7.90/lb. The uranium and molybdenum prices of US$65/lb and US$14/lb respectively are the same in both cases. The Fox-Davies valuation, at a 10% discount rate, after tax is A$978M.
Recommendation
We have retained the Buy on Aura Energy, with an unchanged target price of A$0.80