Bannerman Energy Looks Overvalued Based On Fundamentals

Summary

The company owns the Etango-8 uranium project in Namibia and its current market valuation implies that uranium prices will stay at around $70/lb over the 15-year mine life.

I view this as highly unlikely as we’ve seen such uranium prices only for a period of five months during the uranium bubble of 2007.

Etango-8 is worthless at today’s spot uranium prices as the cash flow breakeven price stands at $52/lb. kasezo/iStock via Getty Images Investment thesis Earlier this week, I wrote an article on Cameco (NYSE: CCJ ) in which I said that the whole uranium sector seems to be detached from fundamentals. Today, I’m taking a look at a Namibia-focused uranium mining company that in my view proves this point pretty well. Bannerman Resources ( OTCQB:BNNLF ) owns 95% of the Etango-8 uranium project, which has a cash flow breakeven price that is above the current uranium […]

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