BMN 7.89% 3.5¢ bannerman resources limited

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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Last
3.5¢
Change
-0.003(7.89%)
Mkt cap ! $37.05M
Open High Low Value Volume
3.8¢ 3.9¢ 3.5¢ $112.1K 3.090M

Buyers (Bids)

No. Vol. Price($)
7 908974 3.5¢
 

Sellers (Offers)

Price($) Vol. No.
3.6¢ 255787 1
View Market Depth
Last trade - 16.10pm 02/06/2020 (20 minute delay) ?
(live)
Last
3.5¢
  Change
-0.003 ( 7.89 %)
Open High Low Volume
3.8¢ 3.8¢ 3.5¢ 159950
Last updated 15.56pm 02/06/2020 (live) ?
BMN (ASX) Chart
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