(1) Not many prospects of richer ore deposits to be discovered. Although management have placed references to future exploration in recent reports. I don't see investors getting too excited or believing management even if they do come up with something. i.e. drill results would have to be pretty spectacular to have any real pus on the sp.
(2) The PFS has been a dud. If you take into account the heap leaching (agitation floatation has not been approved by the Board) costs, the mine would be B/E at best. This makes any lbs/in ground valuation irrelevant.
(3) No Off take agreements; no end user investor; no possibility of raising mining capex with share placement.
(4) Disconnect between current spot + long term contract prices v. future U3 needs.
(5) Majors - PDN, Cameco (Cigar lake), AREVA, EXT (when at full production), BHP, ERA, Rossing, Denison et al all have major plans to ramp up production in anticipation of the fall away of secondary U3 sources + increase in U3 demand due to increase in reactor numbers.
At sub 50's BMN is worth a punt.
Cheers, Skip
BMN Price at posting:
48.0¢ Sentiment: Hold Disclosure: Held
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