Hi all.
Sorry for the delay coming back, but I did attend the session yesterday. (Wob - we need to devise some form of secret HC handshake...).
Happy to share this with all, in case I can’t make it next time around, hopefully someone else will do same.....
Yesterday, Gus was rushed (needed to get to the airport he said, my guess was that the room was too hot and he had a cold beer waiting for him across the road
) so he skipped over some of the content and only had time for a few questions at the end unfortunately.
You've all seen the slides, but from Gus's narrative I can add the following quick comments (in no particular order I'm afraid, and some you will already know):
♠ In a 'good market' you could usually achieve a 70/30% debt/equity mix. We're not in a good market, so the secured debt option assumes 60/40%.
♠ PEN are "in the process" of contracting the remaining amount to reach the 2mlbs needed to be contracted now
♠ A little reminder that PEN had a pre-Fuku market cap of ~$340m.
♠ (Hopefully without enraging some)... "IGNORE the spot price". It is meaningless to PEN's business (being long term relationships directly with multibillion dollar utilities).
♠ About 55% of current world U production is via ISR
♠ US utilities consume ~55mlbs of U each year
♠ Gus noted that a few of the mines mentioned in the Risk to New Uranium supply section "will NEVER start". ie. some real dud's in there.
♠ Gus expects the Japanese to get their ducks in a row and restart several reactors in quick succession
♠ PEN has received approx 14 Requests For Product in the last 12 months, 10 of those in the last 6 months
♠ They expect Karoo will have a similar cost structure to Wyoming
♠ Wyoming produces 400mt of coal each year (more that Australia produces nationally)
♠ “There has been downward pressure on our shares, but it’s gone. Pala are back on board under new leadership” – or something along those lines…
♠ The Lance projects have already had a successful ISR operation on the site.
♠ PEN have only explored 5 of the 13 previously identified sites at the Lance projects. The JORC specialists estimate that PEN has about 4 or 5 times (200-250mlbs) of additional material on the property.
♠ Construction at Lance is approx 50-60% complete
Questions asked (can’t remember them all though):
♠ One on oil price and its effect on U price. Nothing much gleaned here.
♠ PEN expect tax losses to be absorbed by around 2023-2024 (via exploration and capital deductions as well as transfer pricing).
♠ Gus intends to fully take up his rights (Note - per the Prospectus, will cost him ~$700k).
♠ No current plans for share consolidation. There will be at some stage, but it will coincide with a significant event of some description (whatever that means…)
♠ Energy Fuels bid for Uranez works out at ~$7.50/lb in-situ. (very interesting metric if you ask me..). “This is a very current metric”….
♠ (Again, don’t shoot the messenger) – but Gus is clearly placing absolutely no weight on the contentions of the interveners. It’s just a process that we need to see through.
♠ Per HS’s earlier post today, sadly one of the sitting Judges has passed away so the ASLB decision is slightly delayed.
Cheers. Good luck all.
Frogga
