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Gold/Mining/Energy : Uranium Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Yamakita who wrote (6770)	1/16/2007 12:37:34 AM
From: russet	Respond to of 30201

You have to pay millions of dollars to an evaluation company to figure that out. Some companies pay less than $10 per lb yellowcake, and others will pay $100's and some will pay $1000's if their shareholders are foolish and ignorant enough to bankroll them. You don't tend to find out the real total costs per lb until the company has mined the deposit for a few years,...then you find out everyone has made money but the foolish people that held on to their shares for the long run :-)

To: Yamakita who wrote (6770)	1/16/2007 4:08:56 AM
From: lowerSharpnose	Respond to of 30201

...What does it cost to get it out? 30% of its value? 60%? 90%?... It depends - How difficult it is to extract the ore (is it deep and dispersed)? What the grade is. Remoteness of your backyard to a mill. Your backyard resources could be uneconomic at $200/lb. regards lowerSharpnose

To: Yamakita who wrote (6770)	1/16/2007 11:59:02 AM
From: zoo york	Respond to of 30201

"If you're going to say that x company has y pounds of uranium in the ground, you can't just calculate that their assets are y * spot price: it actually costs money to get the stuff out of the ground, and then to refine it." - Yamakita Yeah, thats why I referred to asset value and did not suggest any cash flow analysis. Until we have a study that discloses the parameters for production, then trying to forecast the economics of a deposit are a waste of time, a guessing game. But a deposit still has value. In my breakdown, I posted a resource based on historical numbers from a reputable company. That deposit exists, and in fact similar deposits in the same area have been in profitable production in the past. The company estimates that it would take a uranium price between $60-80 to make the higher grade zone economic, which is where we are right now. So I went with a $100 uranium price just to be well within the range of potentially positive economics. And then assigned an asset value strictly on a pounds-in-the-ground basis. Once you have a documented resource, then a study can be launched to investigate the economics, and then the asset value multiple will grow from there. cheers! COACH247