Anatolia Energy (ASX:AEK) has released an excellent updated preliminary economic assessment on its 100% owned Temrezli uranium project in Turkey. The main takeaway is the very low capital costs over the 10 year mine life, as the total costs are expected to be just $30M, meaning there will be a very healthy cash flow using the expected output of 1 million pounds of uranium per year at a cash operating cost of $20.22/lbs. As the sustaining capital expenditures will be low, we would expect the all-in cost to be just $25/lbs, meaning this project would be very viable even at a depressed uranium price of $40-45/lbs. The main reason why the cash cost and operating costs are this low is because Anatolia plans to recover the uranium through the ISR-technique which has been used successfully in Australia.
The Temrezli project is located approximately 240 kilometers from Ankara in a proven uranium district with nearby access to infrastructure. As the economics of the project look fine, the main risk will very likely be the permitting risk.
Disclosure: The author holds no position in Anatolia Energy. Please see our disclaimer for current positions.