RE:The cost of the PremiumFunny thing about deals, there are so many ways to analyze them. Each angle and approach is a component of the total analysis. For example, with a customer as a partner and an offtake commitment, the cost of risk on the capital financing side has got to be less than without the commitment so that might fall into the pro column when looking from the cost of capital angle. When you look at it from what the discount value is on the sale of 30-50 mlbs in the can that can be a negative to a future buyer of the project. I think that is part of the luxury of having the open pit opportunity and the low operating expense that comes with it. The economics are always going to be favorable, and that may temper the concern over the discount a little.
To me they want to see PLS moving toward permitting and also want to see the regional exploration stepped up. I think CGN would like to see the SW side develop sooner than later. The chinese are taking the steps to control the power industry in the future and will be the dominant force by the time these reactor builds are complete. They will be the Saudi Arabia of uranium, controlling a large portion of the U supply chain....