Funky,....another new (cough, cough) HC poster, who knows it...

Funky,

....another new (cough, cough) HC poster, who knows it all, after a couple of days; they are literally crawling out of the woodwork since December.

I've pretty much lost interest in posting info on this thread, after seeing what has gone on here since the PFS....why bother?

BMN is on a finer profit line than I would like, according to the PFS. There is however, much to be done to improve the economics of the project. There were much higher drilling report grades in the last 6 months, that have not been incorporated into the pit design. The PFS info was taken from the scoping study from back in June.

The floatation economics will be fundamental for an improvement in profitability. The Board has not approved this process as yet, and the heap leaching is the fall back position. It costs an additional $3 - $4 per lb. If the flotation processing does not get up, then this will wipe out some of the cost saving opportunities from higher final ROM grades, and other points mentioned in the PFS.

Ideally, I would have liked to have seen BMN turning a profit in the PFS based spot prices and heap leaching. BMN is a marginal operation on this basis.....at current U3 prices.

I agree with you on the strategic value (deposit size /mine life); it may become BMN's saving grace.

There are a couple of interesting points to make:

1. There is plenty on info going around about how many N reactors are planned ...but it is not just the total number that is important; it will be the number coming online all at the same time. I have also read the NR's need 3 times the normal fuel levels to start up power generation. I imagine there will be a surge in fuel demand it this time. If I was a fuel processor, I would look to having a stock pile of yellow cake for processing, to meet this surge.

2. Watch out for Cigar Lake (de watering progressing); Olympic Dam, KAS, PDN, ERA, Rossing, ramping up production, in the short term. The U3 shortage predicted may never happen. Investors here need to have a cold hard look at the supply side, as this has as much impact on the U3 price, as the demand side, which everyone is focused on.


Cheers, Skip