THEY cant get enough of PEN, page-28

Vintage, I have no idea what the Sales, General and Administrative costs (SG&A) are on average for ISR Uranium miners, but many businesses and industries would peg that at somewhere in the region of 10-15% of revenue.

I don’t think the Ur-Energy example you cite is very useful; they’re carrying the full basket of operations costs + the ongoing resource development costs and amortizing that across a very low sales volume. As you indicate this will change as they achieve scale.

I think our best indicator of the addition SG&A costs above operating costs will be what we see in the Q’ly statements right now. So that’s somewhere between $4-5M per quarter where they’re developing resource full steam ahead and perhaps 30-50% of that if they’re not doing all the extra drilling.

Leaving aside ramp up phase, let’s just pick a number and say 1M lbs at $45/lb sales price on term contract. That provides a revenue line of $45,000,000 of which $15M is gross profit.
Times are tough so we scale back the resource and exploration stuff and call it $2.5M per Q admin/HQ cost or a round $10M for the year. That still leaves a significant profit of $5M. Not what we'd like but hey it's profit whilst everyone else is sending their sailors on shore leave, and we'll get through this in good shape.

My point is they’ll cut their cloth to suit, and I see it as workable even from this apparently dire position.

Now where’s that off-take and funding news…….