OTCQX:BNNLF - Post by User
Comment by
seanyboyon Jun 23, 2011 10:38am
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Post# 18755369
RE: A Few Questions for the Board
RE: A Few Questions for the BoardHi jduade,
All good questions, and sorry this post isn't going to be too helpful - would encourage others who continue to follow Bannerman closely to share what they know.
Cash costs might be in the range of $60 per pound, cap ex 400+ million (note market cap is now only $35million). We are still very much post-Fukoshima, but perception of uranium will eventually change due to solid green credentials and lack of alternatives... I think the question is whether Bannerman can survive without excessive dilution to the point that spot or term U prices make the deposit look attractive. If I were a JV partner I'd like to be forward selling U for at least $100, and really more like $120 to make the project a go. If I were a shareholder I'd want a strong priority on minimizing burn rate, and working the politics in Namibia (project is in a natial park, I understand).
Beyond those U prices, Bannerman has very good leverage. The next uranium bull could be 3-5 years away in my opinion, don't really know... but if Bannerman's still around when U heats up again, it's first on my list of juniors. The size of their resource is just too big to ignore.
Regards,
seanyboy