quarterly results

My views on the quarterly. This was a very comprehensive report indeed, and contained some negative & some positives. Firstly the negatives:

The average cash cost increased to US$30-35/lb U3O8 produced. That’s a big jump up. I was surprised at that as it is so different from some of the previous notices. But then I also respect them for coming out with the higher end figure if this is more realistic. This, as they indicate, allows room for them to reduce it. The thing to remember I suppose is that BMN's cash costs are still lower than Valencia and Trekoppie, both of wwhich as we know were snapped up at big prices.

The other disappointment was the lack of high-grade results at Ondjamba, and the probable lack of results at Bloedkoppjie. Both of those were to be the cream on the cake, but at this stage, not so. They both still have great potential as the area is huge. At Ondjamba, they have found some high grade sheets of mineralization, and quite a bit of low-grade stuff, but none of the large alaskites yet.

The positives:
Up at the North, Oshiveli continues to yield, results with grades at the average ppm of the deposit

But, Onkelo has proved to be a surprise packet yielding solid mineralization across the area, with some very good grades as well. So this confirms that the resource extends solidly all the way to the North up to Oshivelli & possibly further. So we can expect a fairly decent resource upgrade in the future.
54 @ 256; 119 @ 249; 78 @ 233; 30 @ 342; 23 @ 312;
94 @ 263; 30 @ 224; 49 @ 429; 63 @ 221

The other positives relate to the general tone of the report. A quality management team in place.
All the FS prelim work on target to develop the mine, etc etc.

The market will focus on some of the negatives, & I imagine we are seeing this sell off as a result, but the bigger picture remains very strong. BMN has a massive resource, currently 127mlbs, and will be 150mlbs at the next upgrade, and we are selling at a tiny market cap to recent Namibian acquisitions that had smaller deposits with lower grade, and that weren’t as far advanced.

Remains a bargain, and after some consolidation we should see common sense prevail.

cheers