RE:RE:NXE - TD Report - Speculative BUY rating & $4.50 targetIt is just an assumption for calculational purposes. There are many unknowns in production costs and it is in my view just a ball park number with which to try to determine future value of the stock. The number that surprised me is the up front Capital Expenditures of 1.2 Bn. That seems quite low to me and I cannot believe that includes the cost of a mill as well. I would have put it at twice that.
What TD is not anticipating is a surge in Uranium prices. It is those two factors combined that make NXE such an intriguing Uranium play. If NXE can start prodiction of Uranium when the price surge is at its peak I think we can look forward to multiples of share value predicted here. We shall see.