BMN 3.45% 30.0¢ bannerman energy ltd

argonaut securities update

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    Bannerman (BMN) Yellowcake leverage

    Uranium developer Bannerman (BMN) delivered a Pre-Feasibility Study (PFS) for its 80% owned Etango project in Namibia.

    The PFS articulated higher than expected operating costs of US$38/lb for the first five years, and US$41/lb over the life of mine (LOM). Argonauts expectations were US$35/lb LOM.

    The market responded viciously, marking the stock down from $1.15 to $0.63 in three trading sessions.

    Although BMN deserved some pain, the market has over-reacted. Etango retains a number of redeemable features:

    Size The remodeled resource (Uniform Conditioning method) of 152Mlb @ 227ppm enables a large production rate of 5-7Mlb pa over a +16 year mine life
    Exploration upside - >30km of prospective alaskite stratigraphy
    Rigorous costs The US$25-$35/lb operating costs often quoted by junior uranium competitors could prove optimistic when subject to more rigorous studies
    Flotation concentrate option Laboratory scale test-work has demonstrated 5-6% mass pull, if proven on a larger scale this could lead to significant capital and operating cost reductions
    Ultimately BMN is a highly leveraged play. At Argonauts long term uranium price forecast of US$70/lb the stock is valued at $1.01. At US$80/lb the valuation rises to $1.77 and at US$60 it falls to $0.24. Current long term prices are ~US$65/lb.

    BMN offers patient believers long-term uranium leverage.

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Mkt cap ! $369.5M
Open High Low Value Volume
30.0¢ 31.0¢ 29.0¢ $762.3K 2.547M

Buyers (Bids)

No. Vol. Price($)
4 25599 30.0¢

Sellers (Offers)

Price($) Vol. No.
30.5¢ 164765 3
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Last trade - 16.10pm 30/11/2021 (20 minute delay) ?
0.010 ( 5.26 %)
Open High Low Volume
30.0¢ 30.5¢ 29.5¢ 1161691
Last updated 15.55pm 30/11/2021 (live) ?
BMN (ASX) Chart
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