"Why BMN is cheap because hard rock mining at 200 ppm isnt economical and will not be for the foreseeable future."
BMN is cheap because most retail investors have very little reasoning ability, and are basically lemmings!
The article neeads to be read and quoted, in context, which you have done neither! How about quoting the next paragraph:
"The only companies that are going to get [contract pricing] of $US60-$US70 a pound are the big companies and projects with 10-and 20-year mine lives. The little ones with 500 tonnes of uranium here or there over five- to seven-year mine lives are just going to have to sell into the [lower priced] spot market. And if the spot price stays where it is, the margins are going to be pretty skinny ... The best places are Namibia, Botswana and South Australia when you take jurisdictional risk into account."
People need to get this into their head; EXT's deposit isnt normal, its freakishly above average. Dont compare every Namibian deposit with RS to determine its viability. Its like taking Jennifer Hawkins & saying unless every other woman loks like her they wont ever find a partner.
Get real! BMN has an exeptional deposit, and besides RS & Rossing, it is ABOVE average for Namibia. It will easily qualify in Grigor's requirement that a lower grade deposit have a long mine life of "10-and 20-year" in order to sell into the long term markets at $65 p/lb. Etango is easily economical as is at 200ppm, never mind the fact that they have sufficient high grade material around 300ppm to achieve a 10 to 20 yr mine life.
Sometimes people's poor ability to actually understand the market and analyse reports just staggers me!
ps: I hold both EXT & BMN - plus a few others ;)
EXT Price at posting:
$9.00 Sentiment: LT Buy Disclosure: Held
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