london silver

So what could happen when Uranium price goes over $80/lb ... will BMN share price actually rise?

And what of the share purchase placements over the last 12 months, most recently at $0.225 ... now sitting at $0.096 that's a big loss for a lot of institutional investors!

So is BMN a r(j)ubber band that has been stretched to its low point, waiting on global changes to rebound to higher levels? Or is it just JUNK floating to be a penny stock!

And no one is commenting on why GlobalX Uranium ETF has BMN in their portfolio and is increasing their holdings!

Or does it's CAPEX rule it out of ever getting mined? I dont think so, surely GlobablX Uranium ETF has made an educated bet that it will be mined, along with the recent capital raising investors.

And what of bonds vs equities ...

"So why are we going to find out who is right and who is wrong in the coming six months?

The answer to this sits with the sharemarket. Since the beginning of the new millennium the US sharemarket has risen to about the current level several times. On each occasion it hasn't liked the view and headed in the opposite direction in double-quick time. History tells us that once a market makes a clean break through the previous record high, it rarely looks back."

Read more: http://www.smh.com.au/business/bonds-and-equities-are-about-to-battle-it-out-20120805-23ntn.html#ixzz22j1VmVWd

TER: Nuclear power has long-term potential, as you alluded to, but many investors want to make money now. What's the path to profits in the near term?

AA: There might be different investment timelines out there, but any investor can appreciate a good bargain. Uranium is a very unique investment proposition right now. It's the only sector that had a black swan event (The black swan theory or theory of black swan events is a metaphor that describes an event that is a surprise (to the observer), has a major impact, and after the fact is often inappropriately rationalized with the benefit of hindsight.) occur in it—Fukushima—that wiped a lot of market value off the table for publicly traded companies. The whole resource sector is also under selling pressure and uranium is also under that pressure.

Almost every possible punch you can imagine has been applied to the uranium industry. However, the fundamentals and catalysts of the uranium sector are very compelling. Other resource stocks—silver, nickel, copper—are down anywhere between 12–15% over the last three months because the underlying commodity is down as well. Uranium equities are down, but the underlying commodity is unchanged. In fact, the silver lining in this whole thing is that since Fukushima, the price of uranium has found a very stable base at $50–52/pound (lb) and term price is at $61.50/pound.

TER: It was about $70/lb on February 28, 2011, just before the Fukushima disaster.

AA: Correct. The volatility in other commodities and concerns about growth in China or Europe that have weighed on other resources haven't weighed on the price of uranium. I think this speaks volumes to the fact that there is a real supply imbalance in the uranium business. Even discounting for additional new reactors that are going to be coming on-line, we have a situation today where we simply don't mine enough uranium to meet current reactor requirements.

There aren't too many metals that have a gap of about 40 million pounds (Mlb)/year (demand weighs in at 180 Mlb/year versus 140 Mlb of annual mine production). That gap is only going to widen next year due to the expiration of the Megatons to Megawatts program, a secondary source of supply, in which uranium is derived from dismantled Russian nuclear warheads. That's about 15% of the global uranium market. Of course, demand is going to grow because 65 reactors are going to be coming on-line in the near future and another 100–150 reactors are at various stages of planning and permitting. The supply-demand fundamentals in uranium are very compelling.

The fact that supply is tight is the reason that the price of uranium has been supported at $50/lb. However, the reality is that there won't be any mine construction at $50/lb uranium. A study by JPMorgan in January showed that $80/lb uranium is needed to cover the capital expenditures (capex) to build conventional mines. Clearly, at $50/lb we're not there. Supply needs to come on-line. There needs to be a higher uranium price to stimulate interest in mine construction.

http://www.marketoracle.co.uk/Article35009.html

If the markets enter a bull run, if the uranium price rises as its expected in order to meet demand, if the eurozone sorts itself out ... then a BMN 9c buy could turn out to be quite an investment ... or NOT!