VMY 18.5% 16.0¢ vimy resources limited

You have a better chance of hitting a hole in one

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    Coinciding with Vimy's annual general meeting today, The Australia Institute released a report on the economics of Vimy's Mulga Rock project. It appears appropriate that the AGM is being held at the Royal Perth Golf Club. Based on the history to date it looks like you have more chance of hitting a hole in one than the project being economically viable.

    Key findings of The Australia Institute analysis:
    • Vimy’s share price has fallen 98% in the last decade.
    • Company reports acknowledge clear risks around Vimy’s viability.
    • Vimy assumes a uranium price of US$55lb, a price last realised in 2013 at the height of the commodities boom.
    • Vimy has failed to consider the significant decommissioning and rehabilitation costs for a uranium mine.
    • Since its inception, Vimy has raised $114 million in capital and burned through it so there is only $8 mlllion remaining.

    “Vimy Resources' Mulga Rock plan relies on uranium prices that have not been seen since Julia Gillard was in the Lodge and Blurred Lines was in the charts in 2013,” said Richie Merzian, Climate and Energy Director at The Australia Institute.

    “The economics of nuclear power have gone from bad to worse since then, with costs of renewable energy declining and the increasing need for generation to respond quickly to market conditions. Vimy’s claims of reduced costs run counter to the economic literature on mining project assessments – historically projects run over budget by 40-60%, with bigger blowouts most common in marginal projects like Mulga Rock.”

    Here is the report

    Here is a media release
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