RE:Good gravy gramma!Yes it's looking good. But this was always kinda known, was it not? Personally I've been using 10-15 dollars / pound as cost for a while now. The only real challenge was/is building the mill itself. If it were on the lake, it would be hundreds of millions of dollars potentially. But that would still be acceptable at 100+ million pounds (which we have). Now that there maybe is a possibility to start the mill on land, this number drops even. Next to that, if it's shallow, it could be open pit.
One more thing though, remember that almost no one uses 40 dollars / pound as a real selling price. Cameco's average price / pound for 2014 was 52.37 dollars. See: https://www.cameco.com/invest/financial-information.
So that would be even more gravy for you.
The way I see it, FCU needs to do the following things in the short term:
- Drill. Especially try to focus on connecting all the zones (good for everyone). If the zones are connected, costs for the mill decrease (good for major). And by connecting zones we would be adding pounds to the known deposit.
- Try to keep options / dilution as low as possible (good for shareholders and their trust).
- Bring out PEA, unless they want to drill more. I know some of you are saying: we need to drill up as much as possible before getting out the PEA, because the PEA will start a bidding war. Fair point. However, I was thinking: a PEA could also be used as a defensive tool. After all if a bid comes in low and you can easily show your shareholders the PEA, then they will not agree to this bid once they see a better bid should be able to come out. So getting the PEA out there is a give and take- situation.
- Think about their gameplan once they won't receive a bid. Will they spin out Triple (or 4x) R ? Will they threathen the market with becoming a producer? Will they actually get a minority shareholder this time (9.9%) ?
- Think about their gameplan once they DO get a bid. Poison pill anyone?