Valuation

Obviously management credibility is shot.

But put to one side and ask how much is uranium enrichment technology worth?

Assuming a Paducah green light is first cab of the rank, then even allowing for several years of bulilding, the valuation of the perpetual royalty is market capitalisation less net cash - approximately 150 million dollars.

So although we have financed a 7 year cluster you-know-what (ie since 2006, announcement of GE deal), I think we have fallen well below a fair valuation. Sentiment is appropriately in the toilet, but I am strangely positive. Just think, these monkeys can do no more harm (other than get paid for bugger all), yet potential is quite breathtaking.

On another point, I say well played GE. Someone smart there said let's wait until these numpty Australians piss all the money up the wall and we can buy technology from receivers. Thank goodness someone at SLX woke up and looked at the big picture. Now the ball is in GE's court. We're here and we're going to hunker down. What are you going to do having spent "100s of millions" on development/commercialisation. The chance to buy the perpetual royalty may never be cheaper now that the cash erosion has been cauterised.

K