From my research I expect them to have a small mining operation, with 2mlbs mined over 10 years. That equates to 200,000lbs p/a @ $69p/lb. Conservative profit of $25p/lb. So we have a small uranium operation bringing in around $14mill earnings, with profit around $5mill p/a.
With a small MC, this amount of earnings is pretty significant & will fund exploration in their other leases, and also allow them to finance any ramp-up in production.
One of the directors also runs a mining contracting company, so once they get the mining approvals sxpected soon, they go straight into production.
The next few months is going to be interesting indeed.
WCU Price at posting:
22.0¢ Sentiment: LT Buy Disclosure: Held
