Ok this is a little rough, but all the numbers are drawn from BMN or DYL annoncements, except the DYL market cap which was taken from yahoo finance. I did this comparison to see just how good DYL's $25/lb OPEX was as a business proposition when compared to our $42. On the surface it seems obvious, $17/lb, but the numbers are very different when you start looking at CAPEX and market cap.
The opex is lower than bmn, but the capex/lb is quite a bit higher than bmn.
However, this doesn't take into account the 149mlbs M&I resource we have...which will most probably be included so, doing a little more maths BMN 149mlbs @ 638m = $4.30/lb CAPEX BMN CAPEX + OPEX = $46.3/lb
Then if we assume that the 85% recovery rate is pessimistic, and take it up to 90% you end up with BMN 157mlbs @ 638m = $4/lb CAPEX BMN Life Of Mine OPEX = $39/lb BMN CAPEX + OPEX = $43/lb
But we still haven't taken into account the current market cap's of the company ' this needs to be considered as it would be relevant to any party wanting to take over or buy a significant stake: BMN Shares on Issue ~235m @ $0.65 = $152.75m MC DYL Shares on Issue ~371.5m @ $0.33 = $122.6m MC BMN Market Cap Per Lb = 152.75 / 157 = $0.97 DYL Market Cap Per Lb = 122.6 / 24 = $5.1
So adding that all up, the cost to buy a lb of uranium (through acquisition of the company, and then operating the company) is roughly as follows: BMN CAPEX + OPEX + Market Cap = $43.97/lb DYL CAPEX + OPEX + Market Cap = $43.85/lb
So all in all, as good as DYL's OPEX seems on the surface, it needs to be taken with a really big grain of salt considering that the numbers are within 25c/lb of BMN. Our economies of scale really show through when you start looking at the market cap/lb.
These numbers are done with the limited info I have available. Please feel free to poke holes in the numbers if you see any obvious errors/omissions.
P.S.: I have left out opportunity cost (e.g. interest that could have been earned on CAPEX) as it would start getting pretty complicated. I figured that the increased (2-3x) production/year that BMN has would/should account for the differerence in CAPEX return (which is only 2x).
BMN Price at posting:
65.5¢ Sentiment: LT Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)