It's interesting to compare BMN to other low grade developers in Namibia such as Forsys Metals (FSY) with their Valencia project. FSY are about 12-18 months ahead of BMN with a mining licence approved and production due to commence in 2012. Their current resource estimate is about half that of BMN with lower grades than BMN (approx 150 ppm)
The capital cost of building their mine is approx $322M compared to BMN of $522M. Both to be open pit mines with similar processing techniques. IRR is 27-32% c/w 22% for BMN and operating costs are similar at $38/lb. Production rate half of BMN at 3.5Mlbs/annum. Mine life both at > 16 yrs.
Not sure if any financing of the Valencia mine has been organised but it appears not, after GFI takeover fell through. No corporate partner on board.
After all this FSY's market cap is almost 3 fold that of BMN, so there is still hope for the patient as long as the mining licence is approved, which by all accounts should be a gimme (!??!) and the board gives the go ahead for the project
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