GREY:SXRZF - Post by User
Post by
goldishon Apr 03, 2009 10:25am
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Post# 15893924
Cheapest uranium Mine in the World
Cheapest uranium Mine in the WorldJEAN NORTIER: Ja, you are quite right, if you look at our Akdala Mine, producing at $15/pound. But you know what. Alec, I think the mining industry in general has created a bit of a difficulty for themselves talking about cash costs, because cash costs only give you a part of the cost structure. And you can imagine, when we speak to our clients we say we think you should be paying $60/pound, and they say, "you are mining at $15". Well, the cash cost is $15/pound, but ongoing capital to maintain your assets is probably another $5/pound. And then if you look at the depreciation and amortisation which represents the capital that you need to build a mine at Akdala, about $10/pound. So all-in cost at probably the cheapest uranium mine in the world, Akdala, is $30/pound. So good margin on a cash basis