RE:RE:Factual Comparison of PEAsNexgen's NPV is around $5 billion at a $65/lb uranium price. yes, the discount rate is 8% (that's the going rate these days as rates dropped) but using 10% would still have NPV above $4 billion (@$65/lb) I'm guessing as most production and likely higher grade is in the first 5 years..so whats better NPV of $4 billion spread amongst 340 million shares of $1 billion spread amongst 485 million shares. Maybe quakes can figure it out for us.
Uraniuman308 wrote: Probably explains why NXE currently has 3 times the market cap of FCU.
profittaker1 wrote:
Since things are being stated that are false about the PEA's, let's compare them. Let me stress that this is not a competition but this is being done to show we should all keep an open mind and not get caught up in which one is better but rather own both. Fission: Average OPEX of US$14.02/lb U3O8. Nexgen: Average OPEX of US$6.70/lb U3O8. Fission: Base case post-tax NPV of $1.02 billion (10% discount rate) using US$65/lb U3O8. Nexgen: Base case post-tax NPV of $3.49 billion (8% discount rate) using US$50/lb U3O8. So those saying the Nexgen PEA is inferior or not great didn't actually compare them. Nexgen's post-tax NPV is 3.5 times as high and that is with a $15 lower uranium price (while discounting 8% vs 10% and exchange rate of US$0.80:C$1.00 vs US$0.85:C$1.00. So some small differences). Average OPEX for Nexgen at $6.70 US/lb will make it the lowest cost uranium mine in the world by far. Hedging and buying NXE isn't capitulation. This isn't a competition. However, given the deposit is in basement rock it might be a prudent thing to do.