I believe there conference call indicates a very strong position in the upcoming nuclear fuel cycle. There partnerships appear solid. It is all about revenue stream. There was mention of "2029" as a timeline for seeing steady solid revenue. People spoke earlier of the JV reimbursing for work done along the way. Right now there are 5.2 million public shares outstanding. Mr Grae gave reasonable lip service, to no diluting the stock any further, l though clearly didn't rule that out.
The possibility of disruptive technologies was addressed. Mr. Malone addressed the initial concerns of the DOE regarding the possibility of a "Zirconium steam reaction" which lead to Hydrogen release at Fukushima. There proprietary fuel rods do not reach a temperature where this would occur. DOE has invited them back to the discussions regarding accident tolerant fuels. Areva, by signing the JV has seen the economic and safety advantages of LTBR's fuel rod design.
The upcoming Haldron tests, should help to reinforce the safety profile of LTBR's fuel rods. These results will likely be available in 18 months.
There a ability for LTBR's fuel rods to be used in multiple designs; "all other pressurized water reactors, light water reactor of U.S. design or French design or Japanese design. It also works in boiling water reactors. So as we get past the initial phase of testing at Halden, we do not have to duplicate all of that testing if you want to insert the fuel into reactor built by combustion engineering by Babcock & Wilcox."
Other than the timeline, it is hard to imagine this stock trading for 1.11\share. The possibility of further dilution is real. There could be troubles defined by testing at the Haldron reactor. The DOE may be tempted to sanction a competitors advanced fuel design, given the refusal by LTBR to include them in the licensing arrangement.
All in all, I am willing to take the risk. Given the of the "pie in the sky" money that is thrown at biotech companies with 1\10 the science behind them, I will take my chances....IMHO.
