why its weak

I thought like most BMN would rally after cleaning out opes

why so weak?

well I checked out the latest co presentation

assuming they debt finance the mine , and use cash flow to pay down debt first, the company is not worth that much today

the reason is the discount factor now applied to cash flow.

first cash flow to shareholders wont be for maybe 5 to 6 years , after paying back debt

using a discount factor of 15% , a dollar in 6 years is worth less than 10 cents today! recently I noticed discount factors of 20% being used in an internal company investment analysis ( not BMN). At 20% a dollar in 5 years is worthless today

simple as that

the value of the shares will of course rise as the time gap declines, the discount rate declines ( less risk)and cash flow becomes near term ( 2 to 3 years)

of course significant exploration success will drive the BMN price, as will a resumption of the uranium bull back to $100 plus a pound

so you need to ask yourself if there is a better place to to put your money. there is, companies which will generate significant cash flow to shareholders within the next coupe of years, not 6 years out.those companies will outperform in the next couple of years when cash will be king

BMN bulls will not want to hear this type of talk, I present it for the benefit of those not familiar with the impact DCF analysis has with rising interest rates and more consideration given to risk.

naturally if the uranium price resumes its bull run BMN will fly. so at the end of the day BMN is just a play on the uranium price. In risky markets people rather not play with their money they need more certainty. that will cap the gains and see traders profit taking rather than holding

mre buy the dips and sell the rallies