Royalties for Ablation will be far greater than $1.00 per pound. I think any royalty will be a minimum of 10% of the gross revenues from the sale of uranium concentrated via Ablation.
This is a high value-add solution, not a routine step in the uranium production process. As such, it will command a premium royalty. This technology could save a company $20 per pound, perhaps making a $50 per pound operating cost a $30 per pound project! That's why this is a potential game-changer.
The Ablation JV can charge $5-$10 per pound in the above example. JUST MY OPINION. I don't know what the JV has in mind, but it's NOT a 1%-3% royalty. I think a gross revenue royalty is ideal as it would capture the upside in uranium prices.
BLR Price at posting:
1.1¢ Sentiment: LT Buy Disclosure: Held
