I was expecting the OPEX to be around $32 /lb, so initial PFS is somewhat disappointing in this aspect.
Conversely, I was expecting CAPEX to be in the US$ 700m vicinity. The lower CAPEX will mean less share dilution / interest expense on debt.
The PFS just shows that there is no such thing as a 'free lunch'; BMN will have to do the hard yards to increase profitability on the initial PFS.
What the PFS does tell me, is the mine start-up is viable. As yet, we are unable to determine how profitable it will be. The operation is HIGHLY LEVERAGED to the long term U3 price. If one expects the U3 to increase in the next couple of years, then this will be fully reflected in BMN's sp.
The next thing it tells me, is that BMN offers viable energy security for 15+ years, at a low sovereign risk, and low mining (ore and U3 extraction).
I'm happy to hold at these levels - $1.00.
Cheers, Skip
BMN Price at posting:
$1.03 Sentiment: Hold Disclosure: Held
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