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specgoldbug

13,113 Posts.

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15/12/16

23:40

Post #: 21377210
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Originally posted by gamefisherman ↑

STTCOMP BMN, FA Long

(ASX: BANNERMAN RESOURCES LTD : BMN )
SP: 3.0c
MC: $24.96Million
Cash AUD $5.2Million as at 30^th November 2016
Shares: see directly below:
www.bannermanresources.com.au

http://www.bannermanresources.com.a...eholders-39545e91f0b48844284ab1b7729f86a6.pdf

BMN has a Strong and Tight share register and boasts some serious names as holders. As shown below at 30^th June 2016, the Top 20 owned 75.83% or 539,925,605, which left only 172,048,788 shares.

http://www.bannermanresources.com.a...s-report-c4a247e068828fed3480d0696d02daa3.pdf

As at 30^th September 2016 the Company has 711,974,393 ordinary shares on issue.
The increase of shares on issue was due to a recent Cap raising. I can only assume that the Top 20 would not of changed much, perhaps a couple of names have increased their holdings and some lowered their exposure. However the overall weighting of holders imo would still be largely Large Corporates.

View attachment 378362

Bannerman Resources Limited is an ASX and NSX listed exploration and development company with uranium interests in Namibia, a southern African country which is a premier uranium mining jurisdiction. Bannerman’s principal asset is its 100%-owned Etango Project Uranium Project in Namibia; a southern African country that is a premier mining jurisdiction. Etango is situated near Rio Tinto’s Rössing uranium mine, Paladin’s Langer Heinrich uranium mine and CGNPC’s Husab uranium mine which is currently under construction.

A definitive feasibility study has confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation at one of the world’s largest undeveloped uranium deposits. Since 2015, Bannerman has conducted a large scale heap leach demonstration program to provide further assurance to financing parties, generate process information for the detailed engineering design phase and build and enhance internal capability. More information is available on Bannerman’s website at www.bannermanresources.com

http://www.bannermanresources.com.a...ses-sale-32bcba0070b5e161a0860347b14ea03a.pdf

6^th December BMN made a significant announcement. They advised that “it has completed the sale of its Office Premises in Swakopmund, Namibia, augmenting Bannerman’s strong cash balance post the recent equity raising. The Company has received proceeds of approx. $675,000 net of sale costs.” Note: The Company has arranged a 2 year leaseback deal which provides a stable platform for BMN moving forwards.

Bannermans cash balance at 30^th November was approximately $4Million, plus the second tranche of the recent cap raise……….this delivers a pro-forma cash balance of approx. AUD$5.2Million at 30 November 2016

http://www.bannermanresources.com.a...eholders-3a5af4f6679d9e808459a4e1d9276f25.pdf

At the recent AGM it was highlighted that:
View attachment 378365

http://www.bannermanresources.com.a...ompleted-92e1a900d73face62864ff8f9fb53a8a.pdf

Late October the Company successfully raised AUD$4Million at 3c. The companies share price closed at 3cents today. This Catalyst provides the BMN with the necessary funds to continue to move forwards with their Etango Project.

The ability of BMN to successfully complete this cap raise at a time when Uranium prices are at a major low, was a major success and confidence vote for the Company
View attachment 378368
Uranium as a Catalyst itself for the Company:

The Company is well placed as a prime takeover target imo due to current Uranium Prices and where they are estimated to be in forthcoming years. Additionally, Etango is one of the few uranium projects in the world with a completed Definitive Feasibility Study (DFS) and environmental permitting, and will be a top 10 producer once developed. Either one of the largest Company’s that are active in this market would be well aware of the enormous potential that Etango has. Combined with the DFS and enviro permits, it makes for a compelling case. The following information paints an important picture for not only the Company itself but for the Commodity itself.

http://oilprice.com/Energy/Energy-General/Uranium-Prices-Set-To-Double-By-2018.html Commodity Prices, Supply and Demand:

“With prices set to double by 2018, we’ve seen the bottom of the uranium market, and the negative sentiment that has followed this resource around despite strong fundamentals, is starting to change…….It’s been a very tough few years for uranium. But it now looks like we’ve reached the bottom, and the future demand equation says there’s nowhere to go but up—significantly up…Mining Weekly expects “the period from 2017-2020 to be a landmark period for the nuclear sector and uranium stocks, as the global operating nuclear reactor fleet expands.” Billionaire investors sense it, and they’re always the first to anticipate change and take advantage of the rally before it becomes a reality. The turning point is where all the money is made, and there are plenty of indications that the uranium recovery is already underway."

It’s been a very tough few years for uranium. But it now looks like we’ve reached the bottom, and the future demand equation says there’s nowhere to go but up—significantly up “It’s impossible to find another natural resource that is so fundamentally necessary and yet has carried such negative sentiment as uranium. The market has been skewed by negative sentiments that ignore the supply and demand fundamentals,” says Paul D. Gray, President and CEO of Zadar Ventures Ltd., a North American uranium and lithium explorer. But the toxicity levels have dissipated, and nuclear energy is rebounding as a cleaner power source with next generation safeguards. The fundamentals are again ruling the day, and this will be the key year for uranium,” Gray told Oilprice.com

Why Sentiment is Changing: Born in Chernobyl, Raised in Japan

The negative sentiment on uranium was largely made in Japan. The 2011 disaster at Fukushima created an irrational disconnect between sentiment and uranium fundamentals.

Now that enough time has passed since Fukushima, this negative sentiment is losing steam as it appears that Japan has succeeded in bringing some of its reactors back online – four of its reactors have already restarted operations. So the world is refocusing on what are arguably brilliant fundamentals, which actually have been there all along.
First and foremost, the world is building more nuclear reactors right now than ever before, despite Fukushima. A total of 65 new reactors are already going up, another 165 are planned and yet another 331 proposed.
Powering all of these developments will require an impressive amount of uranium. Right now, existing nuclear reactors use 174 million pounds of uranium every year. That will increase by a dramatic one-fifth with the new reactors under construction. But in the meantime, uranium producers have reduced output due to market prices and put caps on expansion. As a result, supplies are dwindling.

Currently, the world is increasingly recognizing nuclear energy as the cheaper, cleaner, and greener option—as indicated by the number of reactors being built. As the specter of nuclear accidents wanes in the aftermath of Fukushima and climate change fears move to the top of the chain, uranium is set for a global sentiment transformation.

As Scientific American opines, “Nuclear energy’s clean bona fides may be its saving grace in a wobbling global energy market that is trying to balance climate change ambitions, skittish economies and low prices for oil and natural gas.”
According to Bloomberg, in Asia alone, approximately $800 billion in new reactors are being developed. Related: After 350,000 Layoffs Oil Companies Now Face Worker Shortages

The market hasn’t quite caught on yet to what this massive nuclear development means for uranium because it’s still stuck in the Fukushima sentiment--but the cracks are showing and it’s about to break free.

https://www.bloomberg.com/news/arti...odity-forecast-to-rally-as-uranium-miners-cut Bloomberg:
View attachment 378374

http://www.bannermanresources.com.au/etango-project/overview/

http://www.bannermanresources.com.a...s-report-c4a247e068828fed3480d0696d02daa3.pdf

(Above is the latest quarterly activities report, and if BMN is of interest I highly recommend that you have a read. There are some significant achievements and updates, however this post is long enough. Will add later if needed)

Summary:

Etango is one of the few uranium projects in the world with a completed Definitive Feasibility Study (DFS) and environmental permitting and will be a top 10 producer once developed.

Based on the DFS, production is expected to be 7-9 million pounds U₃O₈ per year for the first five years and 6-8 million pounds U₃O₈ per year thereafter. It will have a minimum mine life of 16 years with significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth and along strike.

Etango is considered by Bannerman to be a low technical and environmental risk project, with conventional open pit mining and sulphuric acid heap leaching at 20 million tonnes per annum.

The Etango licence area (EPL 3345) is approximately 500 square kms.

Please DYOR as this is not a buy or sell recommendation

Cheers
GF

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Nice tip Gamer.....imho Lithium is cactus with spikes along the way ...excitement exhaustion ....enter the U bull in infancy, new, exciting, not many new gen traders have played with the volatile sector....the writing is on the wall too many signs of ppl getting set from what I am seeing...big recent spot movement...overseas leads.....looks the real deal..start getting watch-lists in order
5 Upvote

0 Great analysis

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