Hi Malcolm in the Middle. To compare, Uranerz is a company...

Hi Malcolm in the Middle.

To compare,

Uranerz is a company listed on the US exchange and it has a market cap of under $100m. This company has been working hard to sell y/cake via Wyoming. They rec'd the green light to sell uranium as producer a year or two ago. URZ has delivered $10m of uranium to two utility customers in the last year - 175,000 pounds of uranium @ US$57.00 - the end result was a net loss.

Compare and contrast.

On the opposite side of the spectrum Cameco has lost 42% in the last five years and Uranerz has lost the same....

PEN is now close to 5 year lows with billions of shares on offer - billions more due to a recent rights issue. No shareholder is happy atm.

$124M cap at 1.7c.

PEN's admin expenses are more than $4m per calendar year.

How much cash are they going to make in the 1st, 2nd 3rd year etc? Do shareholders want a US$15 - $20 plus increase in LT U prices? The problem is that if that occurs, the price increase may be minced down by the really huge producers on standby. Little net profit, if any, may be made by PEN in the first three years atm IMO.

The market has matured and is far more wiley nowadays and little movement will be had once PEN claim they are producing IMO. I believe it's basically not feasible atm but the economics of the project will improve if the Uranium price increases above US$60 LT plus.

It's Catch 22. Possibly, PEN can lock contracts in now, but do they want to?

Treading water.