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.
why its weak, page-3
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$2.24 |
Change
-0.060(2.61%) |
Mkt cap ! $400.0M | |||
| Open | High | Low | Value | Volume |
| $2.29 | $2.32 | $2.22 | $375.3K | 166.1K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 584 | $2.24 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.28 | 3000 | 1 |
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| Last trade - 16.10pm 02/09/2024 (20 minute delay) ? |
| BMN (ASX) Chart |