Very positive scoping study released this morning.1.5 m t...

Very positive scoping study released this morning.

1.5 m t Uranium pa, Opex $US23/lb initially.

Doing the sums:

1,500,000 x ($US60/lb less $US23/lb) / .77 = $A72m pa cash margin.

$A72m - D&A,I say $10m pa x 70% = $A43m pa A/T. Apply PE of 20:1 for U producers (guess) = indicated MC $A860m once production is very close with U price at $US60/lb. Plus lots of exploration upside.

Capex estimated at $US60m = $A78m plus mining fleet that they say they will lease as owner-operator.

OMC is also in high level discussions with AN INDUSTRY MAJOR regarding sale and marketing of the yellowcake.