RE:What's The PFS Worth?Today DMLcloses at $0.71 CDN and NXE closes at $2.31 CDN
So hard to figure. DML had a SIGNIFICANT improvent in estimated operating costs by a switch to ISL mining. BIG improvement in economics. Yet, stock price is back at same number it was couple days prior to truly excellent PFS announcement/news. They have held up over last 12 months better than FCU as you noted a few weeks back Greenday. Going back in time, I, and many other voters, would likely take 1.3+ DML shares per FCU share now hehe - not sure we'd get that offer anymore ; )
Still think FCU has amazing economic upside - will take more Western Zone under land pounds and a deferment of slurry/wall dyke and underground mining for those numbers to shine through though and that ins't part of the this PFS mining plan - maybe in FS or as they move along....a couple of years from now - assuming we can raise money to expansionary drill some more, especially under land to boulder field and incorporate that area as start of proposed mining production - working NE to the lake a bit later (despite 780's super high grade core). Just my theory of how NPV could improve significantly.
I didn't find NXE's PFS all that different from their Economic Assessment but it confirmed the massive size and high grade (and, like PLS leaves out a lot of inferred pounds that can't be used in numbers under the indicated category yet). Yet NXE has been pummelled last few weeks and FCU has been doing the slow drip down from hell. Not sure a PFS unless some new wrinkle is introduced will move needle in a sustainable way - neither DML or NXE's did - I sure hope otherwise, but no proof the investment world cares - YET. Unless a new mining plan (can't use western two zones as they are mostly inferred pounds), I don't know how game changing FCU's PFS can be - i think it will just confirm already SOLID NPV numbers -and hopefully highight low cost of the open pit pounds (under $2 bucks)!
Meanwhile we have a "Uranium" ETF that seems to be selling, selling, selling, rebalancing out of many Juniors and diversifying into semi-related U stocks instead (or just dealing with fund redemptions).
Will probably take until after April and US Gov't proposal 232 (if i remember number right) recommendations on quotas and possible restrictions/tarrifs, etc - until things change a bit. Surprising with spot having risen from low to high 20's. Macro news remains good - with lots of consruction and proposals of reactors and interest in SMR's. Demand apparently outstripping supply this year and next by wide margin - if you believe the numbers.
Cameco probalby has lid on Spot price for now as they have improved bottom line and keep wanting to buy low since they are fulfilling contracts by buying cheap on spot market - but this just tightens the spring further I think....That is how WEIRD the U market has gotten, for now CCO wants lower spot because they make far more profit buying low on spot market and selling to their existing contracts....sheesh!
Super interesting case study - just hope the Canadian Juniors don't get left out - but still feel FCU, DML, NXE cheap for long-term buys - value there.