value comparison, page-6

00Snitch,

I'm sorry I don't understand this line.

...... "The Lance projects won't be economical under an average U price of about $75/lb either...."

Are you saying that Lance is not a viable mine at or about $75/lb?

I went back to the FS thinking that I missed that but can't see costings that are at that level.

From the Investor presentation for Life of Mine, the estimate uses long term contract price of $62.58/lb , with costings (royalties & Taxes $11.11 per lb, Op costs $13.72 per lb, Restoration $4.34 per lb & Wellfield Development $15.41 per lb) , making project cost (excluding admin/interest etc) cost per lb $44.58. Effectively a margin of $18 per lb.

The NPV for the invest presentaion was $255m (at 8%) almost line ball with FS of $252m (8% discount date), so one would assume the investor presentation costs are near the FS estimate.

Am I mis-understanding the BMN or your call on economically viable, as my take was for new ventures to consider the risk/reward to be sufficient, would a U price in this area, hence the lack of new start up U ventures.

I would think PEN is a little more advanced than that?

M