$BNNLF : Bannerman Resources, by the Numbers…

Long-Term Price Case$65/lb. U308
Flagship ProjectEtango
Fully-Diluted Shares1,135,000,000
Fully-Diluted Market Cap$34,050,000
Ore Reserve Estimate130,100,000 lbs.
CapEx$793M
Sustaining Capital$282M
AISC (FCM Estimate)$47/lb.
Average Annual Production7.2Mlbs.
Mine Life15.7 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 Cap1%
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 Growth2,384%
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.

2 replies to “$BNNLF : Bannerman Resources, by the Numbers…”

  1. Hi Tom,

    Have you evaluated Global Atomic yet? I would be interested in knowing your thoughts about them. Technically speaking, they seem to have a very strong chart since it bottomed in 2016.

    1. Hi, Bryson,

      I have evaluated Global Atomic. I no longer have the workups for it, however. The 2020 Feasibility Study will tell us more. I don’t plan on devoting much time to Global Atomic, however.

      Have a great weekend.

      Tom

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