RE:RE:RE:RE:RE:YippeeWell Malcom, I will be retiring in about 7 years. This will be about the time Nexgen would bring this monster into production. With all those new reactors being commisioned by then, I am sure the spot price will be much more than $40. I too bought at around .70 and have added since then. If not bought out before then we are looking at a $20 stock price if not more. Nexgen, thanking you in advance for my well deserved retirement.
Malcolm2001 wrote: A few observations. Many factors yet unknown to decide how much it will cost to extract BUT some facts are known. However some facts to consider.
1.The higher the grade the less hard rock has to be moved per pound of U3O8 extracted. The grades at Arrow are exceptional by any standards.
2. We do not know where the ore will be milled. Transporting ore to a mill is expensive. The closer it is the less the cost. Therefore where the mill is built has a big impact on costs.
3. If it is economic for Cameco to mine Cigar Lake it's is almost certain that Arrow which has similar grades of Uranium will not be as difficult. Not certain yet but heading in the right direction.
4. There is no water to contend with...all in basement hosted rock therefore no unconventional and expensive processes required.
5. The mines will be deep. This will add cost but such mines at these depths are commonplace. Easy engineering job to build a mine here.
So there are many unknowns to speculate on the final production cost but high grades means less rock to move, less rock to crush and process and that means lower production costs. Building these facilities is not cheap of course but if we estimate about 500Mlbs at $20 per pound it is a 10 billion dollar value. At $40 a pound - $20 billion. Should be able to the money back out of that.