Max..once again...do you have your glasses?here is the quote....

Max..once again...do you have your glasses?

here is the quote. This is for you..because you cannot read.

"Using $90/lb and an average grade of 0.025%, BMN will get about US$49.60 for every ton of ore they mine. Take into consideration the losses through the chemical process and the mill, assuming a 90% recovery (Ranger gets 85.5%, Olympic Dam gets 97% and Langer Heinrich was modelled on 90%) gives US$44.64.

Out of that US$45 will need to come capex, opex, admin, overheads, royalties, taxes etc.

Lets ignore Capex for the moment as that will essentially be apportioned to each ton mined and just look at Opex. With the ore body going down to 280m, I doubt they're going to try for open cut. Dr Rudenno gives AU$50/t as an estimate for an underground base metal mine @ 1mtpa (this will be conservative as uranium has other special considerations). Lets assume they'll mine 1.5mtpa (same as langer heinrich), this gives $50*(1/1.5)^0.6=AU$40/ton=US$32.95.

All this leaves about $12 per ton for that capex, admin, overheads, royalties, taxes etc.

How much is capex likely to be? Well, from memory, Langer Heinrich was about US$90mill back in 2005 prices. BMN has to process 3 times as much ore to get to the uranium, so that's likely to be a base case, plus BMN won't get there until 2009, which brings inflation into play as well. So perhaps $5-10 capex per ton is reasonable. This leaves only $2-$7 per ton for everything else (and perhaps the shareholders).

This is why BMN are drilling for more and looking 280m down for there ore that is returning grades lower than PDN's cut off grade back in 2005.

I'll prepare for the onslaught now."

There is no lying in there you fool.