Looking at the 2019 PFS sensitivity, the project had estimated after-tax NPV of CAD$1,015 discounted at 10% with U 3O 8 price of US$65/lbs, which would be very comparable to the 2023 estimate, when accounting for the higher discount rate. PLS project economics at various uranium prices (Fission's 2019 PFS) As a result, the estimated after-tax NPV jumped 71.5% to CAD$ 1,204M, when using a discount rate of 8%. For comparison, the current market price of uranium is around US$50/lbs. Still, the cost profile of the project looks very respectable, given the price increases of various materials and labor in the last few years.Īnother changes that weighed in on the NPV estimate were the resource expansion by 15.1% to 93.7Mlbs and the increase of the uranium price assumption from US$50/lbs to US$65/lbs. So it could be the case that some expenses were shifted from the initial capital requirements to sustaining CAPEX or operating costs. Operating costs have also increased substantially by 36.1% to CAD$13.02/lbs of U 3O 8. While indeed initial CAPEX fell slightly by 1.9%, the indicated sustaining capital expenditures soared by 83.4% to CAD$384M. *prepared by the author using data from Fission Uranium For that purpose, I summarized the main highlights from the 2019 PFS as well as the 2023 FS in the following table: The increase in the estimated NPV is also very substantial, so I decided to do a head to head comparison of the two reports. The last point was quite surprising to me, as there has been a lot of inflation between 2019 and the end of 2022, so I was expecting a considerable bump, instead of a decrease. The title of the release was trying to convey a very positive message about the results, stating that both NPV and IRR have increased, while initial CAPEX came in lower compared to the PFS done in 2019. On 17 January, Fission Uranium released the main highlights from the FS on its PLS project in Canada’s prolific Athabasca basin. Overall, the company may appear more attractive and de-risked to a certain extent, but the question about funding remains. So in this follow up piece I’ll discuss the results from the FS as well as their implications for Fission. Now that the FS is out, it turns out that I was wrong or at least when it comes to the initial capital. Is It Bear Stearns II, or Just a Bear Market? The Fed Is Watching.A month ago I wrote an article about Fission Uranium ( OTCQX:FCUUF)( TSX: FCU:CA) where I expressed concerns of a potential CAPEX blowout in their upcoming Feasibility Study. Pacific West says it has ‘solid liquidity’ with $10.8 billion in available cash Friday What can we do?įirst Republic Bank gets downgrade to junk from Moody’s ‘My family is dealing with a significant shock’: My father secretly married his caregiver, who is 40 years his junior. I’ll be 60, have $95,000 in cash and no debts - I think I can retire, but financial seminars ‘say otherwise’ ‘I was once an emotionally unkempt individual’: I’m 27, was raised in poverty, and work in a grocery store. Should I get a financial adviser to help me? ![]() I get $1,500 a month in rental income and have $200,000 in savings. ‘We need to stop this now.’ First Republic support is spreading financial contagion, says Ackman. Now I have enough saved to buy a business, but I need trustworthy advice. Recently, I’ve been ‘overemployed,’ working two jobs to rake in $300K a year. I’m 36 with $435,000 and want to retire early - ‘the earlier the better’ - but without a frugal lifestyle
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