This simple model aims to disaggregate the marginal costs of a new uranium mine, as a function of uranium prices, ore grade, capex and opex. Our base case is a marginal cost of $60/lb for a 10% IRR. However, lower ore grades can easily require $90/lb uranium prices in order to justify investment. Cash costs range from $7-40/lb.
![economics of uranium mining](https://thundersaidenergy.com/wp-content/uploads/edd/2021/03/Uranium-Mining-Marginal-Cost-x.png)