Vimy moves into financing mode at Mulga Rock

HAVING unveiled a bunch of attractive looking feasibility numbers, Vimy Resouces now needs to find just shy of A$500 million to get the Mulga Rock uranium show on the road in Western Australia.

Vimy moves into financing mode at Mulga Rock Vimy moves into financing mode at Mulga Rock Vimy moves into financing mode at Mulga Rock Vimy moves into financing mode at Mulga Rock Vimy moves into financing mode at Mulga Rock

The project is pegged to generate free cashflow of $134 million per annum from annual output of 3.5 million pounds per annum at all-in sustaining costs of US$34 per pound, with Vimy’s modelling using a $60/lb uranium price and an AUD:US dollar exchange rate of 0.70.

The US contract price for uranium in 2016 was about $46/lb.

First Mulga Rock production from the 15-year project is being targeted for 2021, with a final investment decision anticipated in the second half of the current year.  

Vimy expects the “supply side strike” initiated last year by the world’s biggest uranium producers “to drive uranium prices higher over the short to medium term”.

The company also belie...