Rubiconis rightly points out the mothballed mines that will happily start producing if the uranium price inches up. Critically their cost of production is lower than Mulga Rock thus stopping the uranium price from rising high enough to make Mulga Rock profitable.
The Australia Institute study uses a chart from Vimy to show that Mulga’s cost of production is already in the first/second highest quartile of production cost even if you believe Vimy’s DFS Refresh numbers. The study highlights why the production cost is highly likely to be understated.
On the demand side, The Australia Institute study shows a chart from Lazard showing that new renewable energy is clearly cheaper than new nuclear power. It keeps getting cheaper. Lazard is a US investment bank, hardly a bunch of herbal greenies.
If you are betting on Vimy, you are hoping that you won’t be left holding when the music stops. Having burnt through $107 million of the $114 million in capital it has raised, the time when the music stops is drawing closer
Meanwhile the Vimy CEO is hopefully making the best of the half a million dollar salary you guys have paid him for a share price that has declined 98% in 10 years.
