I’ll have some fun with this. Caveat, this is 5 minutes worth of scribble, albeit 15 years of uranium investing
60% of production at contract prices. Probably $70 40% placed with brokers at spot. Say $60 average over FY25 and FY26 Probably could see $2b to $2.5b AUD MC. With dilution through equity to build plant, moderate valuation over the medium term with normalised valuations - $1.25 to $1.75.
ironically, whilst the market (investors) remain bullish, I think vimy could possibly see $0.75c by end next year, with peak industry equity valuations, forward forecasting valuations with spot values at $80 to $120 (if spot not there by that time, but still trending upwards). I don’t believe market will increase equity valuations above $120 spot, even if spot were at $200. But having higher spot prices for longer will provide plenty of liquidity to stocks, and provide exit at peak cycle share prices
to help Vimy by Q4 next year, we will need to see the following
1. Material works approved by 15th dec 2021 2. Cracking CEO appointed 3. at least 500k pounds of u308 contracted by Q3 22 4. Spot at $100+
maybe even more upside (peak $1.25 to $1.50) with; 5. Bonus material news on alligator 6. 1.5m+ pounds contracted 7. LOI on debt finance of $200m AUD
dyor. Lots of toll gates. That said, exciting times ahead. And a period for the next 6 to 9 months of all boats rising if industry stays bullish. And I strongly believe this will be the case. The thing with Vimy is, it really has a strong possibility of being in production by FY25/26. Which will carry strength beyind peak valuation cycle compared to non genuine developer hopefuls pez
