ONX 0.00% 8.2¢ orminex ltd

wergo negative cost to produce u3o8

  1. 2,738 Posts.
    There seems to be confusion on the costings to produce U3O8 at WERGO.

    I think earlier company announcements - made last year - stated that U3O8 will be produced at less than $12/lb.
    These costings were very, very conservative and probably assumed a ridiculously low long term gold price of US$400/oz.

    so that $12/lb cost would apply with gold trading at say $400/oz.

    i think it should be clear to everyone after the 5th Feb Update/announcement - see page 8 that the WERGO costs to produce U3O8 at the phase 1 levels - i.e. 1 mill lbs of U3O8 and 60,000 oz of gold are going to be zero.

    that's right U3O8 will be produced for free at phase 1 levels after gold credits - with gold at US$450/oz !

    So making possible projections -

    with gold at US$500/oz it would not surprise if the U3O8 can be produced at negative $5/lb.

    with gold at $600/oz it would not surprise to see U3O8 produced at negative $15/lb.

    with gold at $900/oz it would not surprise to see U3O8 produced for negative $40/lb.

    that's right .. U3O8 can quite possibly make a profit of $120/lb at the U3O8 contract price of $80/lb .. $40 above the contract price at the current gold price!!

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