Production of 100.8 million lbs U3O8 an average of 13 million lbs U3O8 per year for 6 years, followed by an average of 3 million lbs U3O8 per year for 8 years Payback estimated at 1.4 years (pre-tax), pay back at 1.7 year (post-tax) Pre-tax Internal Rate of Return ("IRR") of 46.7%, post-tax IRR of 34.2% Pre-tax Net Present Value of $1.81 billion, post-tax NPV of $1.02 billion (10% discount rate) Here are highlights of their 2015 Preliminary Economic Assessment:Įstimated CAPEX of $1.1 billion with 3 year construction periodĪverage OPEX of $16.50/lb (US$14.02/lb) U3O8 over the life of mine Source: Fission 2015 Preliminary Economic Assessment Total Resource Value at current price (US$20.25) Here's a look at the Patterson Lake South's uranium holdings. In fact, high-grade mineralization begins at just 50 meters (164 ft) depth. The Triple R Deposit is actually the only shallow deposit in the Athabasca Basin that is also high grade, making the project unique and economically appealing. This means higher margins, higher profitability, and lower risk. These deposits are characterized as shallow and high-grade, which will allow the project to have operational costs at the very low end of the industry scale. The Patterson Lake South ProjectĮach year since the discovery of the Triple R deposit in 2012, significant new high-grade zones have been found. an excellent investment to profit from uranium's improving fundamentals. The combination of an award-winning exploration team, massive mineral resources, extremely low forecasted operational expenditures, and financial strength make Fission Uranium Corp. Fission has a market cap of around CAD$334 million (US$265m) and no long-term debt. The PLS project was ranked top undeveloped uranium project in the world by The Mining Journal last year. The deposit is part of the Patterson Lake South (PLS) project. is a young mineral exploration company headquartered in Kelowna, B.C., with 100% ownership of the most significant undeveloped, near-surface, high-grade deposit in the Athabasca Basin: the Triple R Deposit. I also screened for companies with strong balance sheets that can last until the price of uranium takes off. I screened for companies in Canada's Athabasca Basin, due to it being a stable mining jurisdiction and containing the highest grades in the world. Uranium's current depressed price, improving sentiment, and long-term bullish fundamentals led me to search the industry for a healthy and prospective company that will benefit from this bullish mix. Moreover, by 2035 the number of uranium-consuming reactors is set to increase by 35%, which should see uranium's price rise. Fortunately for uranium, we all have short memories sentiment is recovering from its most recent disaster: Fukushima. When things go well with nuclear power it's happy carbon-free energy, but when things go wrong it's catastrophic. It is hard to think of a commodity with more notoriety than uranium, and with good reason.
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