BMN - Bannerman Energy

[Sean K]

Will we see all time highs tested tomorrow? If it can break through those sell orders at 3.90 then it could see blue sky sailing.

EOD closes are more significant and is was an all time high close. All other metals are getting smashed right now and DOW slipping, so there's probably a chance it will slip back, although a gap up and run would of course be nice..... $3.50-3.75 should act as longer term support now, all things being equal. TSX listing next week should provide some interest, and support, you'd expect.

 

[Sean K]

BMN TSX listing ann today.

Hopefully this provides the support and kick along some would believe appropriate.

Anyone have an update on the updated resource estimate?

 

[Sean K]

EOD closes are more significant and is was an all time high close. All other metals are getting smashed right now and DOW slipping, so there's probably a chance it will slip back,

No idea, but still early in the day, looks very positive..

BMN pushing though all time highs, intraday, but it usually falls off. If it finishes up, then even more positive.

I am only a junior at TA but this set up should anticipate a projection from the distance of the bottom of the triangle to the top.

That would put it far higher than the 12 month FA targets I think, so I will remain reserved...

 

[the barry]

No idea, but still early in the day, looks very positive..

BMN pushing though all time highs, intraday, but it usually falls off. If it finishes up, then even more positive.

I am only a junior at TA but this set up should anticipate a projection from the distance of the bottom of the triangle to the top.

That would put it far higher than the 12 month FA targets I think, so I will remain reserved...

All time high finish...................... can hear the champers popping tonight. Great for all those who kept the faith. Monday will be interesting to say the least. Will sleep a little easier though this weekend.

 

[Synergy]

This is once share i certainly haven't been losing any sleep over. Up over 150% in a few months. Not that all of that is gain for me, but jeez its move up has been relentless.

 

[kariba]

Hi all

HighGrade online have 3 great articles on Bannerman ... sadly you need a subscription. I have posted one of these below. (For the moderators ... Highgrade do allow subscribers to share the article)

Have a look at the last paragraph for an idea of where the directors see BMN going in the future!!!

I dont often post on forums as you can see ... but I have over the past year or so become quite familiar with Bannerman & the Goanikontes project. I did feel compelled to reply to some of the negative & ill-informed posters here in the past, but am quite happy now to let the company & the SP do the talking.

One thing I did suggest was that people NEVER compare BMN to PDN ... History will end up showing that Bannerman got the cream of Namibia, with Goanikontes Anomaly A being just a small tip of the iceberg!! .... While PDN will continue to have production problems at LH (notice another downgrade hidden in the recent qrtly), squabbles in Malawi, & years of armwrestling with pig-headed Labor policy in Australia!

I just hope the information that I provided assisted anyone in getting in when it was at sub-$2 prices ... I put just about every spare cent I had into BMN then & continue to buy now with profits from other trades. IMO we haven't even begun to see the real potential of BMN. I wont mention a SP target (I might get moderated again) ... but suggest you use your powers of reason: A $2.5billion price for Uramin, for an inferior deposit than BMN's, nevermind all the other BMN targets!!! Thats is 5 times BMN's current MC. Anyway have a read.....

Cheer


http://www.highgrade.net/

Heat on Goanikontes costs
By Richard Roberts, 12 November 2007

Diamond drilling at Goanikontes in Namibia.

THE drive to cut projected operating costs used in the recent scoping study on Bannerman Resources Ltd’s Goanikontes uranium project in Namibia by a third or more is on in earnest in the lead-up to a new resource statement, expected late this year or early next, with a $US50-70 million acid plant part of a longer-term view of the project’s potential scale.

The acid plant will send project capital costs in the other direction, but Bannerman managing director Peter Batten believes substantial operating cost savings can produce a two-year payback. “From then on it can have upwards of a 40% impact on the operating expenses,” he said.

Bannerman’s scoping study put operating costs for a proposed 15 million-tonnes-per-annum open pit mine and conventional acid leaching operation – producing about 4000tpa, or 8.8 million pounds a year, of uranium oxide – at $US27-31/lb. Two-thirds of the costs were in processing and more than 80% of the processing costs were tied up in sulphuric acid sourcing and use.

“Eighty-three per cent of two-thirds is a big number,” Batten told HighGrade.

“If we can secure our own supply we can reduce our operating expenses considerably and there’s also the benefit of producing power through excess heat from the acid. So we end up with another benefit there in the form of essentially free power.”

Batten estimates this could constitute 14kW of Goanikontes’ initial 30kWpa power need. He expects to make a decision on the acid plant, adopting high-pressure grinding roll (HPGR) instead of conventional SAG and ball mill ore comminution, and radiometric ore sorting, in the second quarter of next year. HPGR would save power and water, and reduce capital costs, but might present Bannerman with dust control problems.

The company confirmed to the Australian Securities Exchange this week that further metallurgical test work conducted since the scoping study was completed had shown leach testing on coarser Goanikontes rock samples (than material used earlier) produced acid consumption rates more in line with those being achieved at the Rio Tinto-operated Rossing uranium operation about 20km north-east of Goanikontes. Further testing is in progress, but Bannerman said acid consumption was 13% lower using coarser RC drill chip samples, and up to 50% lower on drillcore material, than the scoping study results.

Batten is confident the lower acid consumption can be transferred through to lower operating costs, along with longer-term savings from a dedicated acid plant and the industry-first use of HPGR comminution. Rossing, which Rio Tinto wanted to exit two years ago, is also building an acid plant and adopting radiometric sorting as part of its current expansion, and Bannerman has had preliminary contact with Rio Tinto on sulphur prill importation, transport and storage synergies that might exist between the two sites.

Bannerman’s scoping study predicted the use of radiometric sorting and a HPGR circuit could reduce the capital cost of establishing Goanikontes as a 4000tpa producer of uranium oxide from $US400 million to about $US360 million. The acid plant would obviously blow the lower number back out. Some analysts who’ve visited Goanikontes have already penciled in capital costs of $US500-600 million for the project, based partly on the rate of cost escalation being seen in the industry worldwide.
Bannerman is using a long-term average uranium price of $US45/lb in its project model, compared to most analysts’ projections of around $US60/lb.

“That’s because of my background in mining [consulting and mine geology]. Everything we do has to be robust,” Batten said. “There’s nothing like opening up a mine full of expectation and reality bites you. So we’re using $US45/lb even though the long-term projections say $US60/lb.”

Bannerman also said this week it had signed a Memorandum of Understanding with Namibia’s state water utility, NamWater, for the delivery of up to five million cubic metres of water a year from a new desalination plant from July 2010. Additional national grid power is expected to be available by late 2009.

“We’ve got any number of challenges,” Batten said.

“The water we’re quite comfortable with at the moment. Power is being addressed, but we don’t know how completely. The expectation is that it will be fulfilled.

“But the other problems include staffing. We’re going to require several hundred people out of an already overtaxed system.

“We’ve given ourselves a tight development schedule [and] since we set the first schedule the project’s grown by 50% in length and more than 25% in depth, so it’s a challenge for us to complete this in the time schedule we’ve put in. In the world as it is today, our long lead items are currently at 24 months and if they blow out any more than that our time schedule suffers.” Batten said using the less conventional HGPR plant would not alter the mill delivery window of two years.

The company was expecting to announce a much larger resource than the preliminary inferred total (55Mt grading 219ppm U3O8) posted in September.

“Our first deposit is going to be quite large and we have larger ones,” Batten said. “They’re a little bit more difficult to drill and will take longer, but the indications are that they will be bigger, better, and so doubling production in future is certainly something that will be considered by the company.

“We are looking at what it would take to double the producion level, but that’s a what-if scenario at this stage.”

It is also one that would make Goanikontes the world’s biggest uranium mine.

 

[insider]

Hi all

HighGrade online have 3 great articles on Bannerman ... sadly you need a subscription. I have posted one of these below. (For the moderators ... Highgrade do allow subscribers to share the article)

Have a look at the last paragraph for an idea of where the directors see BMN going in the future!!!

I dont often post on forums as you can see ... but I have over the past year or so become quite familiar with Bannerman & the Goanikontes project. I did feel compelled to reply to some of the negative & ill-informed posters here in the past, but am quite happy now to let the company & the SP do the talking.

One thing I did suggest was that people NEVER compare BMN to PDN ... History will end up showing that Bannerman got the cream of Namibia, with Goanikontes Anomaly A being just a small tip of the iceberg!! .... While PDN will continue to have production problems at LH (notice another downgrade hidden in the recent qrtly), squabbles in Malawi, & years of armwrestling with pig-headed Labor policy in Australia!

I just hope the information that I provided assisted anyone in getting in when it was at sub-$2 prices ... I put just about every spare cent I had into BMN then & continue to buy now with profits from other trades. IMO we haven't even begun to see the real potential of BMN. I wont mention a SP target (I might get moderated again) ... but suggest you use your powers of reason: A $2.5billion price for Uramin, for an inferior deposit than BMN's, nevermind all the other BMN targets!!! Thats is 5 times BMN's current MC. Anyway have a read.....

Cheer


http://www.highgrade.net/

Heat on Goanikontes costs
By Richard Roberts, 12 November 2007

Diamond drilling at Goanikontes in Namibia.

THE drive to cut projected operating costs used in the recent scoping study on Bannerman Resources Ltd’s Goanikontes uranium project in Namibia by a third or more is on in earnest in the lead-up to a new resource statement, expected late this year or early next, with a $US50-70 million acid plant part of a longer-term view of the project’s potential scale.

The acid plant will send project capital costs in the other direction, but Bannerman managing director Peter Batten believes substantial operating cost savings can produce a two-year payback. “From then on it can have upwards of a 40% impact on the operating expenses,” he said.

Bannerman’s scoping study put operating costs for a proposed 15 million-tonnes-per-annum open pit mine and conventional acid leaching operation – producing about 4000tpa, or 8.8 million pounds a year, of uranium oxide – at $US27-31/lb. Two-thirds of the costs were in processing and more than 80% of the processing costs were tied up in sulphuric acid sourcing and use.

“Eighty-three per cent of two-thirds is a big number,” Batten told HighGrade.

“If we can secure our own supply we can reduce our operating expenses considerably and there’s also the benefit of producing power through excess heat from the acid. So we end up with another benefit there in the form of essentially free power.”

Batten estimates this could constitute 14kW of Goanikontes’ initial 30kWpa power need. He expects to make a decision on the acid plant, adopting high-pressure grinding roll (HPGR) instead of conventional SAG and ball mill ore comminution, and radiometric ore sorting, in the second quarter of next year. HPGR would save power and water, and reduce capital costs, but might present Bannerman with dust control problems.

The company confirmed to the Australian Securities Exchange this week that further metallurgical test work conducted since the scoping study was completed had shown leach testing on coarser Goanikontes rock samples (than material used earlier) produced acid consumption rates more in line with those being achieved at the Rio Tinto-operated Rossing uranium operation about 20km north-east of Goanikontes. Further testing is in progress, but Bannerman said acid consumption was 13% lower using coarser RC drill chip samples, and up to 50% lower on drillcore material, than the scoping study results.

Batten is confident the lower acid consumption can be transferred through to lower operating costs, along with longer-term savings from a dedicated acid plant and the industry-first use of HPGR comminution. Rossing, which Rio Tinto wanted to exit two years ago, is also building an acid plant and adopting radiometric sorting as part of its current expansion, and Bannerman has had preliminary contact with Rio Tinto on sulphur prill importation, transport and storage synergies that might exist between the two sites.

Bannerman’s scoping study predicted the use of radiometric sorting and a HPGR circuit could reduce the capital cost of establishing Goanikontes as a 4000tpa producer of uranium oxide from $US400 million to about $US360 million. The acid plant would obviously blow the lower number back out. Some analysts who’ve visited Goanikontes have already penciled in capital costs of $US500-600 million for the project, based partly on the rate of cost escalation being seen in the industry worldwide.
Bannerman is using a long-term average uranium price of $US45/lb in its project model, compared to most analysts’ projections of around $US60/lb.

“That’s because of my background in mining [consulting and mine geology]. Everything we do has to be robust,” Batten said. “There’s nothing like opening up a mine full of expectation and reality bites you. So we’re using $US45/lb even though the long-term projections say $US60/lb.”

Bannerman also said this week it had signed a Memorandum of Understanding with Namibia’s state water utility, NamWater, for the delivery of up to five million cubic metres of water a year from a new desalination plant from July 2010. Additional national grid power is expected to be available by late 2009.

“We’ve got any number of challenges,” Batten said.

“The water we’re quite comfortable with at the moment. Power is being addressed, but we don’t know how completely. The expectation is that it will be fulfilled.

“But the other problems include staffing. We’re going to require several hundred people out of an already overtaxed system.

“We’ve given ourselves a tight development schedule [and] since we set the first schedule the project’s grown by 50% in length and more than 25% in depth, so it’s a challenge for us to complete this in the time schedule we’ve put in. In the world as it is today, our long lead items are currently at 24 months and if they blow out any more than that our time schedule suffers.” Batten said using the less conventional HGPR plant would not alter the mill delivery window of two years.

The company was expecting to announce a much larger resource than the preliminary inferred total (55Mt grading 219ppm U3O8) posted in September.

“Our first deposit is going to be quite large and we have larger ones,” Batten said. “They’re a little bit more difficult to drill and will take longer, but the indications are that they will be bigger, better, and so doubling production in future is certainly something that will be considered by the company.

“We are looking at what it would take to double the production level, but that’s a what-if scenario at this stage.”

It is also one that would make Goanikontes the world’s biggest uranium mine.

Any of the issues brought up in the articles are really minute IMO... There is really only one thing to do... Buy up more shares and sit back watch the Share price rise... This is a gem Good Luck holders Any Share Price Predictions?

 

[insider]

By the way people, those of you interested in leveraging with CFD's should look at MF Global CFD's... 35% Margin Comsuc ain't doing this... By the way is there a thread on CFD's I'm a little confused on how they work? They sound like a cross between options and Margin lending...

 

[Sean K]

BAN opens up at $3.65CAD ($4.20AUD) on the TSX on just 3000 shares. Next buy at $4.00CAD. Would have thought the broker might have bought a few more to make it look interesting. Maybe they did chip in the $10K just to get it started. Not much interest really. Perhaps those Canucks aren't any more astute U investors than us dumb Aussies? LOL Better sack the PR dude who they've hired I think. Hardly the excitement that I was looking forward to. Early in the day I suppose, and give them a bit of time to understand it. Maybe not enough ramping on the Canadian forums yet. Will be interesting to see the effect of the listing on BMN tomorrow.

 

[the barry]

BAN opens up at $3.65CAD ($4.20AUD) on the TSX on just 3000 shares. Next buy at $4.00CAD. Would have thought the broker might have bought a few more to make it look interesting. Maybe they did chip in the $10K just to get it started. Not much interest really. Perhaps those Canucks aren't any more astute U investors than us dumb Aussies? LOL Better sack the PR dude who they've hired I think. Hardly the excitement that I was looking forward to. Early in the day I suppose, and give them a bit of time to understand it. Maybe not enough ramping on the Canadian forums yet. Will be interesting to see the effect of the listing on BMN tomorrow.

Obviously kennas you havent looked at the dow and the tsx. Both getting smashed.

 

[Sean K]

Obviously kennas you havent looked at the dow and the tsx. Both getting smashed.

Yes I have. That may have something to do with the lack of interest, you are right. I think it's just that it's a new listing that Canadians aren't aware of yet. When they understand the potential I think there'll be more volume there.

 

[strayda11]

Kennas,

The fact BMN opened at a premium (even on low volume), when everything around it is getting smashed (commodities, the DOW, and the TSX) is surely a vote of confidence in the company.

 

[Sean K]

Kennas,

The fact BMN opened at a premium (even on low volume), when everything around it is getting smashed (commodities, the DOW, and the TSX) is surely a vote of confidence in the company.

Yep, I agree, pretty positive, on a down day. Could have been sold off too. I do like that no one's willing to sell under $4.00CAD at the moment. So, whoever's holding thinks it's worth a bit more than $3.65CAD.


Just a little off topic, I thought I'd thow in a picture of me fishing in Canada recently...

Cheers,

 

[Nibbo]

All thats missing from the photo is about 30 drilling rigs and half a dozen coal mines and a pulp mill

 

[Absolutely]

Nice photo. I was in Canada last month myself. You got to watch out for the bears ! Tourists think Australia is dangerous with our snakes and spiders but geez when you think about bears jumping out of the woods and ripping you apart, makes Australia look pretty tame really. And you can't outrun them. Not that it happens very often but the signs "Be Bear Aware At All Times" even in some populated areas made me shiver. And I didn't like wandering through the forest on my own.

Anyway, guess I should say something about BMN too.

Well, it's holding up OK on a down day don't you think? I'm sure it will be off again once there is another change in sentiment (which seems to happen daily in the US).

 

[Sean K]

Well, it's holding up OK on a down day don't you think? I'm sure it will be off again once there is another change in sentiment (which seems to happen daily in the US).

Yep, seems to be going OK, and respecting $3.75 for the minute. I still think what I posted on the 16th is a possibility.

This has been conforming well to basic S&R lines, hope that continues.

Having said that, funnymentals are clear and long term, those broker targets seem realistic, all things staying on track in the U market. I've just been topping up on any pullbacks the past several weeks. Short/Mid term risks still about with the US looking nasty but I think our market might be about to find support around the 6450 ish area.

 

[blablabla]

For the listing on the Toronto stock exchange to have a significant effect on the ASX SP there would have to be adequate liquidity in the Toronto market. This is necessary to give confidence to Canadian investors contemplating buying the stock that they will be able to sell again whenever they choose.

Anybody have a clue as to how many Bannerman shares are held in Canada?

 

[Yeti]

TORONTO, ONTARIO--(MARKET WIRE)--Nov 19, 2007 -- Bannerman Resources Limited (Toronto:BAN.TO - News)(ASX:BMN.AX - News) is pleased to announce that today the common shares of Bannerman Resources are listed on the Toronto Stock Exchange ("TSX"), trading under the symbol "BAN." The TSX has granted the listing in the Mining category for 145,145,117 common shares, of which 127,532,617 common shares are issued and outstanding, and a further 17,612,500 common shares are reserved for issuance.

From http://biz.yahoo.com/iw/071119/0330276.html

 

[blablabla]

Thanks yeti. The 127 million shares matches the latest app 3B issued to the ASX, so it must include the shares held in Canada as well as the shares held in Australia and elsewhere.

A previous announcement on 22nd June 2007 to the ASX mentioned a placement of 2.8 million shares to North American and European investors, but gave no further breakdown.

 

[kariba]

Thanks yeti. The 127 million shares matches the latest app 3B issued to the ASX, so it must include the shares held in Canada as well as the shares held in Australia and elsewhere.

A previous announcement on 22nd June 2007 to the ASX mentioned a placement of 2.8 million shares to North American and European investors, but gave no further breakdown.

GMP Securities ... Have been appointed as the "Temporary Market Maker"

No shares have been issued to the public in Canada. So GMP are "Making" a market over their temporarily until they have enough shares to trade normally.

So you will notice on the TSX that GMP are the seller of ALL parcels, and will remain so until there are other holders & sellers ..... So, one guess who has been buying shares over here on the ASX at cheaper prices over the last month or two??



cheers