ambulance chaser, page-79

Leng,

You have a go at anyone who doesn't say what you want. But you dont provde any backup to your coments.

Lets look at what I said in detail -

Its a fact that BMN are a long way from being a profitable mine. Until the BFS is done and finance arranged its all talk. The current SP is 25% below the cap raising and there seems to be some doubt on whether the raising will be succesful as underwriters may have out clause.
If the raising fails just about everyone agrees the SP will be adversely affected. I just think it could fall by 1/3 to $1.00.

The TSX listing has been a flop as far as raising the SP is concerned and the number of shares being traded is woeful. We will have to wait & see whether it helps the raising.


Some of the issues faced by BMN are -

Legal. The high court case was an unpleasant surprise. It seems likely to fail but unless you are an expert on Nambian law there is some doubt which doesn't help the SP.

Power. Surely everyone has heard about the power crises in South Africa which directly affects Namibia. If you search the web the experts are saying it will take years to fix and could get worse. Companies like PLA are installing diesel generators for 100% backup power so they seem to be concerned. Water is also affected by Power as the proposed desal plant needs power. Current mines use artesian water but due to concerns about water supply new mines like BMN wont be able to use artesian water.


Acid costs. Acid (Sulphur) cost is increasing worlwide due to shortages. One of the culprits is the Biofuel industry , which also pushes up food prices. Acid costs are the biggest single cost input for BMN so its very important. An acid plant will reduce the cost & provide a large portion of the power needs and this will be closely examined. However an acid plant uses sulphur which means the cost of produced acid rises in proportion so it will still have a big affect.

There were all sorts of price projections by HC posters for BMN for $10, $20 and higher. The TSX listing was going to push the SP much higher as the Canadians will realise the value of BMN whereas Australians dont. The revised resource in January was going to be over 100 m lbs some projected up to 140+ M lbs. It seemed BMN was a done deal and the money was in the bank. Reality has turned out to be different.

I still say why hasn't management released any more lab results. They are trying to raise money and releasing results confirming the resource is on the way to 100m lbs would support the SP and help the raising. The other announcement that would lift the SP was good radiometric results at another target (Ombuga South or Rossing)

It seems everytime a stock falls HC posters claim its due to manipulation. I find it hard to believe that brokers are manipulating the SP down so they can keep the 21M shares for themselves.

Finally despite the above I hope the following happens -

Cap raising is succesful resulting in a robust BFS
100m+ lb resource at AA confirmed
U price stabilses around $100 lb
High court challenge dismissed
Power, water, Acid issues all satisfactorily resolved
Numerous other 100m lb resouces confirmed
BMN become major U miner
BMN holders can retire