With 15M cap raise and plant financing at AUD 7cts (50% debt/equity) they are looking at 3 billion shares out. With u price at $80 usd and the 53 M.lbs resource producing 2 M lbs per year a fair share price estimate is roughly AUD 20 cts. if they can get to 3M lbs / yr that increase to 35cts. I am assuming here fair price is NPV / shares outstanding. with that production and $100 U price : 56 cents And with $60/lb for Uranium only 13 cents. Maybe if China starts dumping some of their 600M.lbs inventory to manipulate the price down.
All of this gives 0 value to Haggan So, yeah. There is a bear case. And then the mine will not be built. For a few years.
AEE Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
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