Reality is the share price is in the gutter. Factors of relevance going forward:
Company specific:
- misinterpreted or otherwise, a disappointing PFS as far as the market was concerned, at best v poor marketing by the company. Must be addressed in a big hurry.
- higher end Opex figures in PFS, questions on ease of Capex raising, uncertainty over combination of debt/equity
- fairly strong smell of fear on this company on the basis of post PFS release trading activity combined with general market jitters = significant sp decline
- current market cap relative to peers is rock bottom on a lbs in the ground basis which, all else being constant, puts BMN squarely in the bargain category
- notwithstanding perceived negatives in PFS, project considered economical on basis of contract U price
- PFS generally considered conservative on its numbers. Project economics with potential to improve into DFS as alternativ processing methods exploited and viability is confirmed
- suggestions of electricity pricing / supply issues with electricity sorced from neighbouring south africa
- supposed transfer of shares from retail to institutions that should serve to strenghten / tighten the register
- resource upgrade/update pending
- mining license application lodged
- strategic partnership discussions ongoing
- DFS progressing
- sufficient cash in bank to see BMN through to DFS
Fundamentals:
- global market jitters not helping, another dose of fear in the markets
- international U scene heating up with strong signs of continued rise in focus on nuclear as a clean energy source(so far we have mentioned China, US, Russia, UK, Germany, Indonesia, India, Malaysia, Philippines, Middle East)
- add Japan and Korea to the race for resources http://www.uraniuminvestingnews.com/2731/nuclear-energy-battle-japan-vs-south-korea.html
- possible inverse head and shoulder formation in the spot U price
- 2013 end of megatons v megawatts program - question marks over renewal with positive ss/dd implications
- over all supply and demand fundamentals appear strong based on what I have read.
Down but not out by any means. Susceptibility to a low ball takeover is now more a concern I think.
BMN Price at posting:
51.0¢ Sentiment: Buy Disclosure: Held
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