Since May of this year, 3,600 t UF6 travelled by rail to Yekaterinburg where the depleted uranium will be re-enriched to reactor grade. This is the first such shipment of depleted U from Gronau for re-enrichment since 2009. An additional 8,400 t has been scheduled for transport through 2022.
The 12,000 t depleted U (average assay = 0.30% U-235), once returned to Urenco, translates to just under 2,000 MT natural uranium (4.4 Mlbs), or a little over 2% of annual demand.
Black Iron Inc. enjoys an MTQ Score of 0.7, which places it within the 80th percentile of companies under investigation. In other words, Black Iron’s projected Net Profit Margin potential is high, while its projected Absolute Cost Structure is low, a combination for which Fahy Capital Management looks when placing a prospective investment under the microscope.
MTQ Scores (BARS — Higher is Better) Vs. Absolute Cost Structure (LINE — Lower is Better)
Update, 27 September 2019
Ukraine’s Defence Minister, Andriy Zagorodniuk, has agreed to the transfer of land required for the development of Shymanivske. A Memorandum of Understanding will be signed next month.
In a word, in Test Areas 1 & 2, hydraulic responses were observed where hydraulic responses were expected and no hydraulic responses were observed where hydraulic responses were unwanted. That’ll give the naysayers of ISR at Phoenix something to chew on.
Next Step: Commercial Scale Well at Test Area 1.
We believe Phoenix will prove a game-changer, with the potential to soon demonstrate that EBITDA may be generated by select operators in a world of sustained low spot and LT contract prices.
Denison Mines has a current weighting of 3.4% in the NuChem International Catalyst Fund.
NioCorp has signed a commercial sales agreement with Traxys North America. Under the agreement, Traxys is obligated to purchase 12 tonnes of Sc over the course of Elk Creek’s first 10 years of production. Additionally, 75% of the Elk Creek Project’s primary product, Ferroniobium (FeNb), is under contract over the first 10 years of production: thyssenkrupp (OTC: TYEKF), 50%; Commercial Metals Company, 25%
Fahy Capital Management is not an investor in NioCorp. We may, however, initiate a position in thyssenkrupp this quarter.
“I don’t want to be too comfortable. Once you get used to it, it’s hard to give up. I’d rather stay hungry.”
4’ x 8’ Deadlift Platform Construction
(2) 2’ x 8’ 3/4” Pieces of Plytanium Plywood (1st Layer, Platform Foundation) — Lowe’s (4’ x 8’ Ripped Lengthwise) … $42.98
(2) 4’ x 4’ 3/4” Pieces of Plytanium Plywood (2nd Layer, Platform Foundation) — Lowe’s (4’ x 8’ Ripped Widthwise) … $42.98
(1) 4’ x 4’ 3/4” Maple Plywood (Third Layer, Lifting Base) — Lowe’s (4’ x 8’ Ripped Widthwise) … $50.98
(1) 4’ x 6’ 3/4” Rubber Horse Stall Mat (L&R Plate Landing Pads) — Tractor Supply … $44.99
1 1/4” Construction Screws … $18.95
Total Cost = $200.88
Lay down the 4’ x 4’ Plytanium boards atop the 2’ x 8’ Plytanium boards; attach with construction screws (I used 42 screws). This is the Platform Foundation, so use lots of screws in order to ensure that it is rigid.
Lay down the 4’ x 4’ Maple Plywood Lifting Base atop the Platform Foundation. Center it and attach with screws around its perimeter (I used 16 screws).
Measure the Stall Mat into two 2’ x 4’ sections and rip slowly with the Coping Saw along chalked line. The Stall Mats are heavy and difficult to cut with razor blades. The Coping Saw proved an exceptional and almost effortless alternative.
Lay down one 2’ x 4’ Stall Mat on each side of the centered Lifting Base and attach with construction screws (I used 8 screws on each mat). You’ll have one 2’ x 4’ piece of Stall Mat left over. It makes a good 3/4-in step in front of the Deadlift Platform.
Notes: This Platform was designed to ensure that all materials would fit in a small van; you won’t need to rent a U-Haul truck.
By building your own Deadlift Platform, you’ll likely save ~$200.
The squat rack in the background of the first photograph was manufactured by Titan Fitness. In addition to squats, it’s used for pull-ups, seated presses and bench presses. We chose the Titan X-3 over the Rogue SML-1, as it enabled us to save an additional $200, which was invested in a Rogue Ohio Power Bar.
NorZinc is at the high end of the Absolute Cost Structure curve and the low end of the Net Profit Margin curve. In other words, Prairie Creek is a Project that will require substantially higher Silver, Lead and Zinc prices in order to be viable.
In a raging silver bull market, we think shares could appreciate by as much as 382%, which assumes shares will trade at approximately 5x future net annual cash flows.
Fahy Capital Management is not an investor in NorZinc.
Belo Sun Mining reports that a three judge panel decision by the Court of Appeals of the Federal Justice in Brazil has ruled unanimously that SEMAS remains the competent authority for the environmental permitting of the Volta Grande Gold Project.
The ruling confirms that the Construction and Environmental Licenses granted by SEMAS for the Volta Grande Gold Project remain valid, subject to the completion of the Indigenous Study. [LINK]
$VNNHF : Belo Sun Mining — Independent Economic Analysis
We boosted our stake in Denison Mines this morning by 25% following an updated analysis in which the company achieved a maximum in-house Composite Rating of 5. Denison Mines excelled in the following categories: Net Profit Margin (Phoenix), Absolute Cost Structure (Phoenix), True Value Discount, and Market Cap Growth. Our Target, however, has been lowered by 20%, as our updated calculations implied a True All-In Cost (TAIC) that was higher than expected for Phoenix, while Net Profit Margin and Absolute Cost Structure for Gryphon were average.
MTQ Scores & Composite Ratings — Study Group Comparison