Bannerman Energy: Fully Permitted Etango Uranium Project in Namibia Nears Construction for Target 2027 Production

• Bannerman Energy has completed an 18-month process to confirm capital costs and certainty for its Etango uranium project in Namibia. Capital costs increased 11.3% to $353 million while all-in sustaining costs is only at $39/lb.
• Over 40% of capital costs will utilize Namibian resources to benefit the local economy. An additional $21 million in discretionary spending will reduce opex or improve technical certainty.
• Bannerman is entertaining interest from utilities in both the East and West for strategic funding and offtake agreements. This optionality puts the company in a strong position.
• The company believes it occupies an attractive position as a near-term producer, with key permits in place and ability to be construction-ready once financing is secured. Few other uranium projects globally are as advanced.
• An expansion/extension study shows potential to double production from 8 to 16 million tons per year with just 6-8 months additional work, providing significant future upside.

Bannerman Energy (ASX:BMN) is emerging as a standout investment opportunity in the uranium sector. The company's flagship Etango Project in mining-friendly Namibia is one of the few globally that is fully permitted and near construction-ready status. With uranium prices showing signs of recovery amidst growing supply deficits, Bannerman appears well-positioned to bring a significant new source of production online by 2027.

Etango Project Overview

The Etango Project is based on a world-class uranium deposit in the Erongo region of Namibia. Bannerman has spent over a decade advancing the project, completing extensive drilling and technical study work to establish an initial reserve sufficient for 8 million tons per annum (Mtpa) production over 12 years. All key permits are in place, including environmental approvals and a mining license.

In June 2024, Bannerman announced the results of an 18-month technical and financial review process aimed at confirming and improving the project's fundamentals ahead of a construction decision. The results were highly encouraging, pointing to both improved cost certainty and continued strong project economics.

Interview with Bannerman CEO, Gavin Chamberlain

Capital Cost and Technical Certainty

One of the key outcomes of the recent study work was updated capital cost estimates. In an inflationary environment where many mining projects are seeing major cost blowouts, Bannerman was able to limit the increase in Etango's capital cost to just 11.3%, bringing the total to $353 million. According to CEO Gavin Chamberlain, this result was achieved through a systematic, cost-focused approach:

"On day one, we put in a capital cost tracking system whereby for every decision that was made, we tracked what the capital cost impact was for every single technical change we've made, we've assessed the impact of capex versus opex in terms of is this a good or bad decision for the project."

Importantly, the revised capex figure includes $21 million in discretionary spending on items that will reduce operating costs or improve technical confidence in the plant throughput. Overall, the project is estimated to improve accuracy by +/- 10%.

Low Operating Costs

Another crucial figure confirmed in the recent study was Etango's all-in sustaining-cost (AISC). At just $39 per pound U₃O₈, Etango is forecasted to be solidly in the bottom half of the global production cost curve. Notably, despite inflationary pressures, the AISC estimate increased only $1/lb (2.6%) compared to the previous definitive feasibility study.

Chamberlain noted that the minimal increase in AISC was a testament to the company's rigorous cost control processes. A low AISC will help the project generate strong cashflow through the commodity price cycle.

Funding and Offtake Optionality

With confirmed key technical parameters, Bannerman is engaging with potential financiers and offtake partners to secure the funding to bring Etango into production. Encouragingly, the company is seeing interest from both Western and Eastern utilities:

"Namibia traditionally has been able to sell its uranium anywhere in the world, either East or West. So there are obvious interest from both parties that potentially creates a competitive scenario where we can move forward and get the project financed correctly," said Chamberlain.

This optionality on strategic funding and offtake is a major advantage for Bannerman. The ability to pivot between Eastern and Western counterparties provides flexibility and should help the company secure the most advantageous terms. Chamberlain expects to announce a financing solution and reach a final investment decision before the end of 2024.

Expansion/Extension Potential

Beyond the initial 8 Mtpa development, Etango hosts significant expansion potential. Bannerman's existing reserves are sufficient to support a doubling of production to 16 Mtpa, and a scoping study has already been completed on this expansion scenario.

Importantly, the groundwork laid in studying the 8 Mtpa base case provides a huge head start for the expansion. Chamberlain estimates that just 6-8 months of additional work could bring the expansion to the same level of detail as the current definitive feasibility study. In the meantime, construction of the initial 8 Mtpa operation could begin, further enhancing the confidence in the expansion.

This potential to scale up production in response to growing demand and higher prices provides tremendous upside to the investment case.

Attractive Jurisdiction

Namibia is one of the world's most attractive jurisdictions for uranium mining, with a decades-long production history and a supportive government. With many competing projects still facing permitting hurdles, Bannerman's fully permitted status in Namibia is a key differentiator.

Namibia's track record of allowing uranium exports to Western and Eastern utilities underpins Bannerman's marketing flexibility.

With its world-class Etango Project significantly de-risked and nearing construction-ready status, Bannerman Energy offers a compelling opportunity for investors to gain exposure to the strengthening uranium sector. The company's recent study work has confirmed a highly competitive cost structure and a clear path to first production by 2027, while the strong expansion potential and financing optionality provide a major upside. As one of the few uranium projects globally that is fully permitted in a stable jurisdiction, Bannerman appears well-positioned to emerge as a winner in the impending uranium development cycle.

The Investment Thesis for Bannerman Energy

• Exposure to strengthening uranium fundamentals: Uranium prices are recovering amidst growing supply deficits, and Bannerman offers one of the few near-term production growth opportunities
• Significantly de-risked: With a definitive feasibility study complete, permits in place, and construction-ready status imminent, Etango has been significantly de-risked compared to most uranium development projects
• Upside potential: The existing reserve supports an expansion scenario to 16 Mtpa, potentially doubling production with minimal additional study work required
• Financing optionality: Bannerman is seeing interest from both Eastern and Western utilities for strategic investment and offtake, providing competitive tension and flexibility to secure attractive terms
• Stable, proven jurisdiction: Namibia is one of the world's top uranium producers and has a long track record of supporting the industry and allowing export to global utilities

Macro Thesis Analysis

The uranium market is showing clear signs of recovery from a prolonged downturn, with the supply deficit expected to grow in coming years as demand outpaces production. Amidst a scarcity of advanced-stage, construction-ready projects globally, Bannerman Energy's Etango stands out as one of the few with the potential to help fill the growing supply gap. As CEO Gavin Chamberlain noted:

"We are sitting pretty in that we are almost ready, well we're ready to go into construction - all we need is the funding. And you can count our competitors on the one hand, you take the Namibian jurisdiction into account, potentially two or three of those competitors fall off the list because either they're not permitted, or they're sitting in African jurisdictions that are not nearly as friendly as Namibia. You start getting down to maybe one or two different investment opportunities, and we believe that Etango is probably leading that pack right now."

With the stars aligning on the macro front and a substantially de-risked, robust project, Bannerman appears to be approaching an inflection point and warrants close consideration for uranium-focused investors. With costs and permits, financing and offtake discussions advancing, and a clear path to production by 2027, the company is poised to create substantial value as the uranium market recovers. A robust project, an attractive jurisdiction, and strong macro fundamentals make Bannerman a standout opportunity in the uranium space.