Azarga Uranium Corp. (AZZ:TSX; AZZUF:OTCQB) announced in a news release that it filed an NI 43-101 compliant preliminary economic assessment (PEA) on its Dewey Burdock uranium project in South Dakota.
The report outlines an in situ recovery operation producing 14.3 million pounds of U3O8 over 16 years.
In the base case scenario, which assumes a $55 per pound uranium sales price and applies an 8% discount rate, the PEA projects a pretax internal rate of return (IRR) of 55% and a net present value (NPV) of $171.3 million. With the same assumptions, the post-tax IRR is an estimated 50% and the NPV, about $147.5 million.
"The projected cash flows for the Dewey Burdock project PEA are positive in the second year of production, two years after the commencement of construction," the release noted.
As for costs, the initial capex is estimated to be $31.7 million. Cash operating costs are forecast to be $10.46 per pound of production. Royalties and local taxes (except for property tax) are estimated to be $5.15 per pound of production.
Read what other experts are saying about:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Azarga Uranium. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Azarga Uranium, a company mentioned in this article.