RE:RE:Value per pound Congratulations FCU shareholders and great work to Dev, Ross, and the whole FCU team.
These maiden estimate results have exceeded even my expectations. It looks like 150Mlbs or greater is a sure thing now. Does anyone know if the cost to extract the U3O8 would decrease as the size of the deposit increases? I am thinking that the price per lb we sell for should go up as the deposit increases in size. That is because I am thinking that the NRE would be spread over more lbs extracted.
I recall some work on Hathor to estimate the extraction costs. Has anyone done similar for FCU (pre-PEA). I would like to see a sliding scale showing lbs in ground versus the NRE. Maybe I have just given myself a research project. :-)
YAAAAAHOOOOOO!!!!
I really like the idea of fully delineating the triple R deposit and then selling or splitting it off as a separate entity. FCU could then continue to explore the rest of its property and doing what they do best. I am going to be following this exploration team for many more years. Thank you!
Aelfric wrote: Well, U3O8 trades in US Dollars. Hathor was acquired for about $12USD/lb 3 years ago. Assuming we have another year or so until we are acquiired, there is some inflation to account for.
Therefore, we should be looking to get at a minimum:
FCU price per lb minimum = ($12USD per lb) * (1.16 CDN per USD) * 1.02 ^ 4
= ~$15 / lb
That is only a 2 % inflation rate.
Lets assume that the resource eventually contains 100Mlbs.
We are looking at a purchase price of 100 * 15 = $1.5B
That equates to a share price of $3.75
Now, if Cameco et al take too long, we will ultimately find more U3O8. 150Mlb? Thats $5.63 per share.
Don't be robbed or tricked by anyone suggesting less per lb.