I did some project modelling for BKY's Salamanca 1 deposit only, as its the only one that they released Uranium Estimates for in this qtryl,
Here are the assumptions:
BKY Fully Dilluted Capital = 110m(ie all options converted, unlisted etc, plus issues to Areva and so on
Uranium Spot Price = $40 us/lb
Cash Costs = $20 us/lb
Margins = $20 us/lb or $26 AUD/lb
Deposit size = 4,000t = 8.8m lbs
Cap Ex = $150m AUD
Gross Margin = 8,800,000 x $26 = $225m AUD
NPV (Pre Tax interest etc) = $225m - $150m = $75m = 70c BKY
Now heres the interesting bit,
a 10% increase in spot price to $44/lb = + 60% NPV = $1.10 BKY
a 25% increase in spot price to $50/lb = + 166%NPV= $1.80 BKY
a 20% increas in depost size to 4,800t = + 66% NPV = $1.10 BKY
a 50% increase in deposit size to 6,000t= +150%NPV= $1.70 BKY
All of that is for 1 of its 5 projects, no wonder Frances Areva Corp, the largest Uranium Engineering Compnay in the world wants a piece of the action.
Spanish media reports on approvals for BKY's mining application have sent this higher. BKY hasn't been officially notified yet.
trading halt as I was having a sell order
BKY update: Spanish group, Ecological Transition "Ponencia" proposes to prohibit new exploration for radioactive materials (uranium) as their contribution to draft climate change and energy transition bill.
Naturally BKY is opposed, as their uranium project is just about to start production. They are waiting on a final approval which is now in doubt due to this latest ESG proposal.
Damage will be done in my systems...Damn!That's annoying after today's Announcement Frog
Similar to what was said on the footy the other night, "What are they thinking"
In my experience, people who object the loudest to Uranium mining often know the least about it.
Anyway, the proposal still has to pass Parliamentary and Senate approvals before becoming enforced.
Given the amount of regulatory approvals the Company already has in place, I'd expect it to fall over, but when the "do gooder" brigade start stomping, anything can happen in the short term.
If I read correctly, The Company had a $180 million market cap and almost $80 million in cash at the last Quarterly?
That's a pretty impressive ratio in anyone's language. If the proposal gets modified favorably down the track, there should be a pretty hefty bounce in the share price you'd think.
On paper and outside the narrative, a great company but hey, narrative is rule.we will end up with the crisis we deserve and narrative will not bring food on the table or roof above heads even here in the lucky countryDamage will be done in my systems...
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