facts on bmn market cap

BMN Market cap

In working out the market cap of BMN, and the potential future MC, don't be clouded by half-truths, poor research, and double agenda.

Lets get the facts straight, and also lay BMNs future intentions on the table:

Firstly, current tradeable shares on issue:
156,775,000

Then there are the:
1] 4,000,000 to go to Savannah on grant of mining licence
2] 16,340,000 to go to RCF for the 1st $10m tranche (Assuming BMN don’t elect to pay out the convertible note, and/or RCF elect to convert)
3] 15,000,000 director options that are exercisable

Giving us a current FD total of:
192,115,000 units

Then that leaves the 2nd RCF tranche, which I am dismissing, because the latest decision to raise funds has mentioned:

"The Board is seeking pre-approval to raise, up to a further A$30 million in new capital. We are seeking this approval so that, in the instance of an improvement in market conditions, the Company has the option of raising funds to aggressively advance its exploration and feasibility study activities, and to potentially avoid the need to draw on the Standby Tranche of the RCF facility."

So forget the 2nd RCF tranche, it is history!! It gives RCF too much for their loan provision, and in this improving market and a much improved position that BMN finds itself in, it is not worth drawing on.

So what do we have? Well it means at this exact point, the maximum fully diluted MC attributable to BMN is 192,115,000 units. But, with a potential $30million raising to come, if approved. Management have the view that 61.5 cents is too cheap for BMN shares, and they expect an improved SP over coming months, so they hope to raise this cash at a much higher SP, probably around $1, or plus that figure. Assuming in a few months time, a raising of $30million at $1 per share will see BMN with a fully diluted position of 222million units, $40million in the bank, BFS fully funded, and all exploration work funded for the next year or so.

True, this will see the company more diluted than at present and with a higher MC, BUT, in a very strong position by years end. We will have our BFS out on Anomaly A, have the resource confirmed to “Reserve” status, we will by then have results out on much of the drilling campaigns that are underway - or about to get underway, and be cashed up for the next years work program. This type of resource confirmation will be very powerful!! So I would imagine that we will have had some announcements out by then on off-take, J/V’s, or some other form of interest from 3rd parties.

All this for just over 70 cents atm is a steal IMO