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Extract Resources Limited T.EXT



TSX:EXT - Post by User

Post by brasil500on Nov 09, 2009 4:50am
547 Views
Post# 16466343

Why Im in Ext and not the athabaska play

Why Im in Ext and not the athabaska playHat is half the grade and notnearly half the size of denison's midwest. you can check the numbers onwiseuranium. There was no buyout there just a JV and as you can see inthe link Im posting below...it prognosticates the future ofRoughrider. IMO unless you see midwest get the green light then it isimpossible to look at Hats project as an economic mine thats worthbuying out.

Lets look into the future and say they get to 20 million lbs.

20 million lbs U has $1.3 billion value in situ at $65 long term price
$600million capex to build (Just like the midwest situation the ore wouldbe shipped so were not talking about a building a mill just giving thesame mine development capex required at a comparable deposit)
Letsput op costs at the lowest imaginable number of $20 (right aroundmcarthur river numbers, the best out there and incorporates thosebyproduct credits too)
so $65 minus op costs at $20 is $40 profit is $900 million
$900 million minus capex of $600 million is $300 million

SO the whole project allowing for 20 million lbs would only generate $300 million in profit thats if theres no problems.

IMOthey need to hit 40 million lbs to begin to be a player and at 50million and up then the situation looks a lot more positive.

https://www.world-nuclear-news.org/ENF-Economic_crisis_impacts_North_American_mines-2611084.html
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