Some simplified calcs will show why BMN is undervalued.(this has been done before)
-Assume Spot price attainable is @ $70/lb - Operating Costs at $30/lb - 8 m lbs of U308 mined per year with 12 year mine life - Assume US/AUD unity - Production in 3 Years and mine payback in 2. (+ve cashflows start in 5 years) - Discount rate at 15%
With these numbers, BMN will be generating postive cashflows of 320million in 5 years for the next 10 years.
This equates to a present value of 918Million and a Share Price of $6.33 TODAY.
Also this is worst case scenario. Say spot price of $120/lb is attainable... then the cashflows are 720m PA, and with a mine payback of 1 year, that puts the present value at 2.477 Billion anda Share Price of $17.10.
Of course IVe left out quite a few points but I just wanted to give newcomers a general idea of the potential of BMN.
BMN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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