|Long-Term Price Case||$65/lb. U308|
|Fully-Diluted Market Cap||$34,050,000|
|Ore Reserve Estimate||130,100,000 lbs.|
|AISC (FCM Estimate)||$47/lb.|
|Average Annual Production||7.2Mlbs.|
|Mine Life||15.7 Years|
|Market Cap Valuation per Resource Ounce||$0.26|
|Share Price Valuation by Resources in the Ground||.11 lbs. ($2.71)|
|Resource Valuation as a Percentage of Market Cap||1%|
|Market Cap Valuation||$320,046,000|
|Future Cash Flow||$129,600,000|
|After-Tax Net Cash Flow (LoM)||$1,526,040,000|
|Future Market Cap||$845,650,000|
|Future Market Cap Growth||2,384%|
|PMCV10 (Projected Market Cap Valuation at 10%)||$0.75/sh.|
Notes: All Values in U.S. Dollars. Fahy Capital Management has had occasion to trade in and out of Bannerman, but we ceased to be long-term investors following last year’s massive dilution. Moving on…
We think we have developed an accurate AISC for the project that enables one to fairly value Bannerman as a future producer. As you can see, the numbers clearly show that Etango is an economic project at $65/lb. U308.
One worrisome metric, though not of exceeding importance by itself, is Share Price Valuation by Resources in the Ground. At present, each share of Bannerman represents a mere $2.71 of uranium in the ground. By way of comparison, each share of peer Forsys Metals represents $13.78 of uranium in the ground.
In a word, don’t you want the shares you own to be of substantial intrinsic worth? Thanks to rampant dilution, each share of Bannerman isn’t worth much of the payable uranium they purport to represent.