Some simplified calcs will show why BMN is undervalued.(this has been done before)
-Assume Spot price attainable is @ $70/lb
- Operating Costs at $30/lb
- 8 m lbs of U308 mined per year with 12 year mine life
- Assume US/AUD unity
- Production in 3 Years and mine payback in 2. (+ve cashflows start in 5 years)
- Discount rate at 15%
With these numbers, BMN will be generating postive cashflows of 320million in 5 years for the next 10 years.
This equates to a present value of 918Million and a Share Price of $6.33 TODAY.
Also this is worst case scenario. Say spot price of $120/lb is attainable... then the cashflows are 720m PA, and with a mine payback of 1 year, that puts the present value at 2.477 Billion anda Share Price of $17.10.
Of course IVe left out quite a few points but I just wanted to give newcomers a general idea of the potential of BMN.
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Mkt cap ! $589.4M |
Open | High | Low | Value | Volume |
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Buyers (Bids)
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---|---|---|
11 | 5309 | $3.27 |
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Price($) | Vol. | No. |
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No. | Vol. | Price($) |
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10 | 5784 | 3.260 |
11 | 21301 | 3.250 |
7 | 7571 | 3.240 |
6 | 22719 | 3.230 |
Price($) | Vol. | No. |
---|---|---|
3.280 | 2746 | 7 |
3.290 | 8997 | 13 |
3.300 | 4875 | 6 |
3.310 | 4205 | 6 |
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