MC of $30.78m (USD32.5m). 119m JORC compliant reserves. Buy it:...

MC of $30.78m (USD32.5m). 119m JORC compliant reserves.

Buy it: USD$ 0.27 / lb.
Build it: CAPEX USD$870m = USD$7.31/lb
Run it: OPEX = USD$41/lb

All for a grand total of USD$48.58 /lb. With a spot price $48/lb and a LT contract price: $60/lb (or thereabouts). And that doesn't increase by much as you pay multiples of the current sp. Even if you paid $1 per share you still get a price in the region of USD$51/lb.

Depending on your view of, amongst other things:
- the sustainability of Japan and Germany's ostensibly populist u turn on nuclear energy
- the rather murky world of global supply and demand of U308 (impact of conclusion of megatons to megawatts, India / China / Middle East pipeline demand, etc etc),
- the increasing importance of and focus on energy sovereignty (being brought into sharper focus by world events -today's riots in China over the face off with Japan re ownership of a potentially oil rich set of islands being a good example),

there is an argument to say that BMN is worth a look (notwithstanding the well documented and debated company risk borne of a fairly average management performance). Pretty big punt I agree but perhaps the upside is starting to look more attractive relative to the downside. Most of us look at this on the basis of whether it is a profit making venture but what price would you pay to solve a critical issue such as energy sovereignty. It might well be that an India or a China or other nations with nuclear ambitions simply want to lock down future energy security and if the deal wipes its face financially then maybe that is a bonus ? That amounts to free energy security. Food for thought.