PEA Highlights - RecapNow that the DML deal has been cancelled maybe we can get back to the many positives of FCU and their PLS property. I know most if not all of the shareholders have read this, but just want to reiterate how good of an assessment this is. The other big plus, is that it does not include the growing 600w zone. Onwards & Upwards.
Highlights
- Base case pre-tax Net Present Value ("NPV") of $1.81 billion, post-tax NPV of $1.02 billion (10% discount rate)
- Mine life of 14 years producing an estimated 100.8 million pounds of yellowcake at a metallurgical recovery of 95% with 77.5 million pounds of U3O8 recovered in the first 6 years of production
- Average annual production of 7.2 million lbs U3O8 over the life of mine
- Base case pre-tax Net Cash Flow over the proposed mine life of $4.12 billion, post-tax Net Cash Flow of $2.53 billion
- Base case pre-tax Internal Rate of Return ("IRR") of 46.7%, post-tax IRR of 34.2%
- Pay back estimated at 1.4 years (pre-tax), pay back at 1.7 year (post-tax)
- Estimated initial capital costs ("CAPEX") of $1.1 billion
- Average operating costs ("OPEX") of US$14.02/lb U3O8 over the life of mine