takeover talk forsys, page-11

Hi Jay,

That was from an article; not my research. Sorry for not quoting correctly in the first place.

There was a similar evaluation exercise done by Warwick Greigor ? (stockbroker in Sydney) I can't remember the guy's name, but if you hunt back through the BMN posts from 2009 you will find plenty of info. He compared all U3 explorers on the ASX.

BMN must be close to AUD $0.50 lb in ground. Although, as BMN has done the PFS, the lbs in ground valuation is now a moot point.

Sell-off and continued low valuation is due to the vagaries in the PFS. The PFS included economies from the floatation process, which has not been yet approved by the board, and has gone a step backwards, with lab results now down to 85% recoveries. That could cause another $3 - $4 to the opex results.

The PFS profit results are pretty marginal, at current U3 prices, when you have to add in cost over runs, possible heap leaching, and sundry other cost blowouts.

If BMN get some financing (impossible to do an equity raising at these sp levels); off-take agreement, or end user partner, then thing will change. Otherwise, more of the same unfortunately.

There have been plenty of reports in 2009, indicating that the U3 price will have to increase in order to make the next generation of mines profitable (EXT is an exception obviously). The U3 price has been drifting lower.


Cheers, Skip