Question-and-Answer Session
Operator
(Operator instructions) And our first question comes from Laurence Alexander of Jefferies.
Lucy Watson – Jefferies
Hi, this is Lucy Watson sitting in for Laurence.
John Welch
Good morning, Lucy.
Lucy Watson – Jefferies
Good morning. Given the risk that the achievement of $3.8 million through a possibly pushback beyond 2012 due to financing issues. How you that can showing an appropriate return on capital on going today or I guess in other words, the contracts you negotiating now including an exclusive adjustment for the change in fixed cost absorption?
John Welch
Lucy, I’ll answer that in two ways. One is we has confirmed in our discussion this morning and you will see in our 10-Q, we are not adjusting our overall schedule for the project. So, we continue to anticipate the $3.8 million will being online at the end of 2012 and second, with our general approach to contracting for ACP has been to wait until we have a very good sense for our costs and our schedule and so, that has been one advantage to waiting to contract for that, but until really over the last six months and so, we’re taking into account the cost that we see and the expected structure of our operating cost profile as we contract for that output. Bob anything to add.
Bob Van Namen
Just two other comments, one would be the as the ACP is starting up, we do have our building inventory and we have some flexibility in the way we sell that inventory as we are going through the start up process and then again we do see substantial opportunities for continued operations from Paducah whether it would be for low and rich uranium productions shifting of higher assay tails or other mission. So, we do have several moving parts, but we are very conscious of making sure that the prices were looking for under those future deliveries will be aligned with our cost structure.
Lucy Watson – Jefferies
Okay, in the past you have suggested cash flow from operations in 2009 would be an improvement on 2008. I am just wondering what’s your level of confidence is the cash flow from of the next will be process?
John Barpoulis
We are not yet giving our guidance for 2009, but as hopefully we communicated in our comments this morning and you will see in our 10-Q. we are, again reinforcing significantly higher sales volumes in 2009 similar to that in 2007 in which that will be improved – significantly improved cash flow from operations. And but at this point I can’t give specific numbers or guidance, but we will clearly being expecting to do so in conjunction with our 10-K and comments in February.
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