hidden gemThe U sector is heating up and BAN is still flying under the radar. I'm seeing alot of other junior names being thrown around by the analysts but BAN rarely gets a mention. BAN will fly when the market wakes up and realizes they are sitting on one of the largest undeveloped Uranium deposits in the world - 212M lbs in extremely mining-friendly Namibia; easy open pit mining; flat Opex over life of mine (+20 yrs) and set for production in 2013 corresponding with where most analysts are forcasting peak demand (much higher U prices)
A look at the numbers reveals just how valuable BAN is even at todays prices. They have modelled around a $70/lb LT price , which I believe is now conservative given the current supply/demand climate:
$70/lb-$42/lb (opex) = $28/lb * 6M lbs/yr (5-7M lbs/yr production) * .67 (33% Namibia tax) * .80 (80% ownership) = $90M net profit/yr
$80/lb LT price = $122M/yr net profit
$90/lb LT price = $154M/yr net profit
Throw a 10X multiple (P/E ratio of 10) on any of these numbers and you get a Market Cap of between $900M - $1.5 Billion. At today's .84 level, we have a current MC of $194M so the upside here is amazing!
I keep hearing Strathmore Minerals name thrown around by the analysts. There was a piece in the Financial Post yesterday saying how undervalued they are - "The company has more than $20-million in cash. STM's enterprise value (EV) to resource ratio is about $1.30/lb versus the industry average ratio of $2.50/lb."
Well Bannerman is currently trading with an EV/lb of $.91/lb!! If BAN was currently at the industry average of $2.50/lb * 212Mlbs = $530M MC / 230M shares outstanding = $2.30/share!! WE SHOULD BE TRADING AT $2.30/SHARE!
The market will soon recognize this value and we will be off to the races. Congrats to all enetering at these levels!
Read more:
https://www.financialpost.com/news/Imhof+wins+with+gain/4106832/story.html#ixzz1BJFlnI2h