quiet confidence - agm

Just a quick note on AGM - 90 minutes, mostly Dad's Army (no disrespect ;)).

MG was most relaxed I have seen him. I think trio to Willmington NC has put a spring in his step.

Some points in no particular order:
Uranium:
1) Internal models suggest first royalty will start at 12%. Don't know if this is new but I do not recall this being said previously. Heaps better than 7% minimum obviously.
2) GLE can sub license if they want to. ie more royalties - but would require gov approvals etc.
3) Cameco also bid on being first JV partner; were able to do classified due diligence with US gov approval; missed out to GE so were keen to buy into JV - now GLE
4) GE want to turn on test loop on 4th July (at latest I presume). This will be a very big deal in a marketing/publicity sense. Test loop is to test 24/7 operation and reliability.
5)No explicit div policy as yet: however, business model most favoured is for each business to stand on its own - like UE; therefore can deduce that apart from headoffice overheads, a quite high payout ratio is feasible and (given how old everyone is and how long we have waited) I think board can't wait to write the div cheques (to themselves as well!)
5) Test loop delay from 1st quarter to 2nd quarter - mainly/solely due to fact contractors have to be classified, so only small pool to work with. Initial delays now overcome.
6) Why 6 SWU as initial commercial plant target? Because that is what GE (now GLE) think they can sell forward before even building the plant (ie spending a billion ball park). Truely amazing. Marketing agreements with 2 US utilities very important; Utilities very conservative as they must deliver base load without interruption.
7) Building new centrifuge plants is among other things hostage to frozen credit markets ie some will get built but huge ? over USEC's strategy (market cap only 0.5b).
Translucent
1) All IP held by company. Unequivocal.
2) PA left amicably. On one interpretation this is a good sign as it shows company moving from research to engineering. PA only interested in research.
3) May get some news late this year, but more likely next year.
4) REOs - misnomer not rare at all; whereas other thin film technologies that get mentions which are not REOs are infact rare.

Conclusion:
Strong view that SP has fallen because of factors outside companies control ie the dreaded GFC. Burn is 500k/month but net cash has actually gone up to 74m in year ended due to interest, FX and option exercise.

I came away very happy about future.