Read on Twitter
For those pre-production #uranium caps (<US$150m size) raising money to take them towards the Final Investment Decision, this should come as no surprise, one should build into their models dilution as follows:
$55 spot = likely 50-65% dilution if capex is funded at this point
1/3
$55 spot = likely 50-65% dilution if capex is funded at this point
1/3
$65 spot = 45-55%
$75 spot = 40-50%
$85 spot = 35-45%
Hence our view that buying < 0.7x peak CF 3-4 years out undiluted = 0.9-1.2x diluted = 4-5x upside.
Those trading at <0.5x = 6-8x upside.
2/3
$75 spot = 40-50%
$85 spot = 35-45%
Hence our view that buying < 0.7x peak CF 3-4 years out undiluted = 0.9-1.2x diluted = 4-5x upside.
Those trading at <0.5x = 6-8x upside.
2/3
Funding a project at $85 spot implying > $50lb cash margins for 3-5mlb capacity = operating CF US$150-250m 3-4 yrs out
Buying that cap today at $53 spot
US$100m cap = 4-7x return
US$75m = 5-8x
US$50m = 6-10x
3/3
Buying that cap today at $53 spot
US$100m cap = 4-7x return
US$75m = 5-8x
US$50m = 6-10x
3/3
This $30-100m cap group should increase by 150-400% going into $85 spot which reduces the dilution on capex financing
Case studies to watch $FSY $AEE $WSTRF
Case studies to watch $FSY $AEE $WSTRF
• • •
Missing some Tweet in this thread? You can try to
force a refresh
