RE:RE:RE:RE:RE:RE:thoughts on the ER?
RamonaBlossom wrote: To be correct, all of free cash flow was used for paying back loan and interests. This will also be the case this year. URG has to safe money and will do it successfully, I'm convinced.
Thanks for the link. Looking through it I think they'll be able to improve their cash position and won't end up with $1-$2 million, but closer to $5 or 6 million. They've reduced expenses, and won't be producing nearly as much this year, so while the cast cost per lb will go up, their overall production expenses will be down significantly in 2017.
Their average cost per lb for the 600,000 lbs they're selling at $51 will be closer to $25/lb vs the $28.2/lb in 2016. This is simply because they bought 410,000 at $22/lb. The remaining 190,000 will probably cost $35/lb. They'll actually produce about 250,000-300,00 lbs, but 60-110,000 isn't under contract for 2017. That is $2 to $3 million in production costs that won't be sold in 2017.
If spot remains low, they should be able to essentially convert their contracts to cash by buying on the market to stay afloat.
If spot goes up into the 30s this year, I think they'll end up producing at least 300-400k lbs, significantly above their guidance.