The comments above are worth a bit more thought all round, I put...

The comments above are worth a bit more thought all round, I put up a few "back of the envelope" numbers to provide a bit of debate. The main issue is of course one large minority shareholder whose position blocks a better long term outcome for other shareholders.

A somewhat cheaper option would be to supply ore to RIO in a JV arrangement (assuming for the moment they can take it). However, read the Extract presentation from Sept 2011. The estimate cost of the production plant is $529m, from a total cost of $1659m, this leaves $1070m to find. Some saving but still a need for a big Capex. Cost of production is estimated to be $28.5 per lb of which $13.9 is for mining.

They are planning on digging 2 of the largest holes an earth, the cost of this is not trivial even if the ore can go down the road. A number of JVs could cover some or much of the cost but I think current shareholders will face dilution one way or the other, unless considerable debt is raised on future earnings.

A new Husab mine I hope can set a better example than that by Rossing historically with regard to employment issues. Interestingly the Iranian Government have owned a 15% stake in Rossing since the 70's but don't receive any of the uranium oxide from it. Rossing isn't going to run out soon, they had 246m lbs in total resources at the end of 2010 and a current life of mine estimation of 2023 or later. I doubt Rossing will be able to accommodate a significant supply of ore in an oftake agreement from elsewhere to make a difference in the near future to Extracts plans anyway.

Husab will have a resource well maybe closer to 1000m lb in time and will be able to feed a separate 15m lb/year plant for decades.