Bannerman Energy Ltd BNNLF

great potential

[rotten2core]

Bannerman has been severely punished over the paqst year.  It was waaay overdone in my opinion.  As you rightly point out Hudsucker, most explorers trade with an EV $2-3/lb.  BAN has a massive deposit and would need to trade around $1.80 just to get back to PEER LEVELS!!  Not to mention the fact that U is set to run hard!  I am expecting them to reduce OPEX to around the $36-37 range as they are targeting but Even if they dont, with LT contract prices of $70 (which is no stretch at all from here) they will make $30.lb.  @ 6M lb/yr that's $180M * .7 (30% Tax ) *.8 (80% ownership) = $100.8M annual profit.  Give it even a 10X earnings to get a market cap of $1B.  Now the number of shares on issue at the time gets into  a little guess work but lets say even 500M shares on issue that`s $2.00 per share which IMO is quite conservative given the recent change in U sentiment which is expected to pea in 2013 which is exactly when they are expecting production (perfect storm!).  Like I said, I also believe they will reduce OPEX. They also have a very large land package alot of which borders PALADINs  LH mine which hasnt even been looked at yet so there is massive exploration potential here as well.  To me, this one has massive upside with very little downside risk as it is ridiculously cheap compared to weaker peers.