RE: 10 million revenueNo, they get 25% of the 3.446MM lbs produced, or 866,000 lbs net = ~$10+MM revs. Cash costs should be around $5 lb.
But what is impressive is the production ramp up. Up 47% from Q3. And they are expecting significantly higher production ramp thru next summer, topping out at just under 7.25MM lbs/yr net (or 1.8MM lbs/qtr).
Based on the recent Q3 MD&A, it looks like cash costs should be around $5 lb (significantly higher production should be driving down unit costs). Assuming $12 Ni, that implies a profit or around $6MM in Q4. Assuming costs drop (or at worst stabilize), BMC should be generating about $12.5MM qtr starting by end of Q2 '09, or $50MM/yr in earnings.
Give this company a minuscule 5x PE and you're looking at a $250MM mc company vs current mc of around $75MM.
BMC should triple in the next 18 months from these levels. Sellers at these prices have their heads so far up their arses, t'aint funny.