Are my eyes deceiving me?, page-54

If U prices go higher from here it makes it easier for everyone of course.

But the price would have to go extremely high to make it feasible for BOE to mine.. They have 3 million in the bank, and 7 million in long term debt and basically no equipment.

If they do try to go into production they will need a CR in the hundreds of millions as it costs hundreds of millions to get a workforce in place and buy equipment and put the infrastructure in place to have an operating mine. Not to mention have the cash to be able to operate the mine until they process product and get sales. As the U price climbs companies will start to dump U on the spot market keeping a lid on the price. ERA alone has billions of dollars worth of U in its stockpiles which it will need to get rid of at any price over the next 8 years. Even PDN has substantial stockpiles and a mouthballed mine that has all of the infrastructure in place. And then BHP can ramp up production at Olympic Dam any time they like,, and they already have the infrastructure and equipment,, and zero cost getting the uranium out of the ground.

Another major problem BOE would have would be the political situation in Australia. If they tried to get another Uranium mine up and running Wankers would come from everywhere trying to stop it happening. And the politicians would listen. It will be incredibly difficult to get any new U mine up and running in Australia, even if the state and federal governments allow it. IMO getting a U mine up and running in Australia is pie in the sky stuff..

I wish that Australias attitude to Uranium mining would change. We have the perfect situation for it,, We could mine the product, sell the product, use the product, and then we have plenty of desert where we can bury the radioactive waste for eons.. But for some reason we would rather put up bloody windmills and charge our electricity consumers 10 times the price they need to be paying.. Face it,, on some fronts our country sucks.

In any case best of luck with BOE ,, it is feasible that you will get some nice share price increase as the U price moves,, I would suggest taking gains as they come along and not holding out for this company to go into production.