Bannerman (BMN) Yellowcake leverage
Uranium developer Bannerman (BMN) delivered a Pre-Feasibility Study (PFS) for its 80% owned Etango project in Namibia.
The PFS articulated higher than expected operating costs of US$38/lb for the first five years, and US$41/lb over the life of mine (LOM). Argonauts expectations were US$35/lb LOM.
The market responded viciously, marking the stock down from $1.15 to $0.63 in three trading sessions.
Although BMN deserved some pain, the market has over-reacted. Etango retains a number of redeemable features:
Size The remodeled resource (Uniform Conditioning method) of 152Mlb @ 227ppm enables a large production rate of 5-7Mlb pa over a +16 year mine life
Exploration upside - >30km of prospective alaskite stratigraphy
Rigorous costs The US$25-$35/lb operating costs often quoted by junior uranium competitors could prove optimistic when subject to more rigorous studies
Flotation concentrate option Laboratory scale test-work has demonstrated 5-6% mass pull, if proven on a larger scale this could lead to significant capital and operating cost reductions
Ultimately BMN is a highly leveraged play. At Argonauts long term uranium price forecast of US$70/lb the stock is valued at $1.01. At US$80/lb the valuation rises to $1.77 and at US$60 it falls to $0.24. Current long term prices are ~US$65/lb.
BMN offers patient believers long-term uranium leverage.
- Forums
- ASX - By Stock
- BMN
- argonaut securities update
argonaut securities update
-
- There are more pages in this discussion • 17 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add BMN (ASX) to my watchlist
|
|||||
Last
$3.03 |
Change
-0.040(1.30%) |
Mkt cap ! $532.5M |
Open | High | Low | Value | Volume |
$3.02 | $3.12 | $2.98 | $4.004M | 1.322M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 516 | $3.02 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$3.05 | 700 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 1640 | 3.050 |
1 | 5100 | 3.030 |
1 | 501 | 3.020 |
2 | 7119 | 3.010 |
2 | 6923 | 3.000 |
Price($) | Vol. | No. |
---|---|---|
2.890 | 19011 | 1 |
2.920 | 50 | 1 |
2.930 | 884 | 1 |
2.990 | 3073 | 1 |
3.010 | 4600 | 1 |
Last trade - 16.10pm 18/07/2024 (20 minute delay) ? |
Featured News
BMN (ASX) Chart |