1)Olympic Dam Expansion BHP expects all necessary government approvals to be obtained in 2010 and “work commenced soon afterwards". the expansion would take 11 years and be completed in five stages, BHP said. So the full production may take 12 year, in the other word, BHP may produce 19000t/pa U by 2022, if nothing is delay.
2)U Supply RUSSIA will stop his HEU deal from 2014, so there is 24mb u supply will be disappear, Olympic Dam Expansion increase 14500t u (19000-4500), that's 32mb u, conside HEU, net increase 8mb, less than 5% of world u demand in 2008 (170mb), and could be less than 3% of year 2022's world demand.
3)Olympic Dam's uranium cash cost was about us$13/1b in 2008, and ROSSING was about us$17/1b, conside ROSSING's grade is 300ppm, ROSSING SOUTH 430ppm, IMO, RS's cash cost could be very close to Olympic Dam's. If BHP can sell his Olympic Dam's uranium for profit, RIO or somebody else can certainly sell RS' uranium and make money.
BTW, that's among the lowest cost in the world, if there is any over supply some time, that will affect higher cost supply first then their supply will be cut , and price will go up, that is why people want world class asset, RS is one of the best uranium asset in the world, don't worry, do more reseach.
EXT Price at posting:
$4.92 Sentiment: Buy Disclosure: Held
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