unofficial jorc estimate, page-6

hi jay, of course the price of uranium is going to rise in the future, i think it can double within 3-4 years. I have done some comparative research in the uranium sector and i just feel that currently, dyl are one of the most expensive and therefore i currently hold bmn, ext, pdn and pen for a long term bet on their USA projects.

BMN have a MC of 252m, with a jorc resource of 107m lb demonstrated and 52m lb inferred. feas studies are advanced with expectation to begin construction and mining at 5-7m lb pa by 2013 in which uranium price is expected to be $100 +/lb
Their projects are located in Namibia, very close to DYLs. BMN has sufficient cash to take them to beginning of construction in which they will then need finance for construction.At projected rate of 5-7m lb, this puts them on parallel with PDN's namibian production rates.

my calc: 5m lb @ $43/lb =215m revenue (at current u3o8 prices)...based on a PE of 15,(215*15/243m) = $13.27 SP value, then we take into account DCF and capital costs/operating costs, risk attributable to being in africa, needing to source finance for construction and gain all approvals and the SP value is reduced significantly, in the region of $4.50. Then we evaluate the market value per pound of uranium resource and we are currently paying $2.35/lb

Now, we look at DYL, who are valued at 382m...i like the fact that PDN is a major SH, directors have been buying up lately and they have some quality local projects, though under explored and not the major focus currently. It is Namibia that i have focused on and their drill results thsi far appear to be very good, similar to that of bmn and pdn, although i raise concern at their expected JORC resource. I dont think, judging by previous reports by DYL, drilling and posts on HC that they will exceed 100m lb. while i note that their resource is high at 500ppm and incur low costs to mine, they project 2m lb pa production.

Now, on a comparative situation between DYL and BMN i think you can see that BMN are better value based on Namibian projects. BMN's greater production rate more than exceeds the benefit of DYL having good AUS projects awaiting development. Upon the JORC release i can do some more calculations and proepr evaluate DYL but i think i have put forward a good case to explain why i think there is far more upside in BMN. I have conducted this analysis for several other uranium companies but i wont include them as it will take me all day to type it...cheers JT

NOTE: i hold bmn stock