Etango Uranium Project Hits Key Milestones En Route to 2028 Production

• Bannerman Energy is making steady progress with early works at its Etango uranium project in Namibia, having completed the access road and water infrastructure while advancing internal roadworks, construction power, and bulk earthworks with all blast work now completed without incidents.
• The company has a conservative cash management approach with AUD$81 million in the bank (as of end of 2024), sufficient runway into next year, and is breaking contracts into smaller packages to engage Namibian contractors while maintaining their 2028 target for uranium production.
• All primary approvals and licenses are in place, including environmental and mining licenses, with the Namibian government maintaining positive engagement through operational departments even during ministerial transitions.
• Bannerman is pursuing multiple funding work streams, including equity investors, debt financing, and potential strategic stakeholders, while maintaining patience in a volatile uranium market that has seen prices drop from $107 to the low $60s.
• Matt Horgan has joined Bannerman as VP Business Development and Investor Relations, bringing 15 years of mining sector experience including roles in chemical engineering, commercial development, investment banking, and most recently heading corporate development for ASX-listed Peak Rare Earths.

Bannerman Energy provided a comprehensive update on its Etango uranium project in Namibia, highlighting construction progress, funding strategies, and market positioning during a challenging period for uranium prices. The discussion featured CEO Gavin Chamberlain and newly appointed VP Business Development and Investor Relations Matt Horgan, who outlined the company's disciplined approach to project development and capital management. While maintaining its target to bring uranium to market by 2028, Bannerman is carefully balancing progress with financial prudence as it advances through the early works phase toward full construction.

Project Execution & Milestones

Bannerman Energy has made significant progress on its Etango project over the past year. The company has completed critical infrastructure components including the access road and water facilities. Chamberlain highlighted the effectiveness of their water management strategy: 

"We took the same philosophy that we're going to use in operations and built a storage dam on site with 10 days storage. Since we built that dam, we've had two notified stoppages of the desalination plant, but because we had 10-day storage on site we haven't actually had to stop construction once."

The company has moved into internal roadworks, construction power implementation, and bulk earthworks. A noteworthy achievement has been the completion of all blast work required for the bulk earthworks contract without any incidents and with no unexpected geological conditions encountered. This validation of their geotechnical expectations reduces execution risk as the project advances.

Engineering design has also progressed significantly to continue with detailed design work. They have already issued construction drawings for the entire bulk earthworks program and are currently working on construction-ready drawings for concrete and structural steel components. This advanced state of engineering design provides greater confidence in both technical specifications and cost estimates for future contracts.

Financial Strategy & Cash Management

Bannerman is taking a measured approach to capital deployment, carefully balancing project advancement with cash preservation during a period of market volatility. The company reported approximately AUD$81 million in cash as of the end of 2024, providing sufficient runway well into 2026. This financial position allows Bannerman to maintain progress while awaiting more favorable market conditions.

The current contracts for earthworks and construction power are scheduled to conclude around mid-year 2025, while the bulk earthworks contract extends through mid-2026. The company is strategically evaluating smaller work packages that require less capital to maintain the project timeline while extending their cash runway. Importantly, Chamberlain confirmed they currently have no debt, and all running contracts have already been committed within their cash flow projections.

Despite the careful pace, Bannerman maintains its target to bring uranium to market by 2028. The project team is focused on identifying smaller packages that will keep the project on track while minimising cash outflows, supplemented by ongoing efforts to secure financing.

Risk Management & Contracting Strategy

Bannerman has implemented several strategies to mitigate construction and supply chain risks. The company is breaking contracts into smaller packages to reduce financial exposure and enable participation by Namibian contractors with limited balance sheets. This approach also provides flexibility should project timelines need adjustment.

For mechanical contracts, Bannerman has implemented a two-phase approach: first securing vendor data, then issuing fabrication instructions. Within this structure, they've secured escalation formulas during competitive bidding to create a mechanistic approach to cost variations. Chamberlain explained:

"If indices go up, we can calculate how much the contract cost goes up; if indices go down, we can calculate how much we're going to save on the contract."

This same approach is being applied to their remeasurable contracts, with contractors competing based on known escalation formulas. As Chamberlain noted:

"The worst thing you can do is not have that known upfront because then, depending on where their biggest increases are, they change the factor to make sure they get the most money out of it at the end of the day."

By breaking contracts into smaller packages, Bannerman is also reducing risk related to contractor financial stability, addressing a common concern with construction projects in emerging markets.

Interview with CEO, Gavin Chamberlain & VP Business Development & IR, Matt Horgan

Regulatory Environment & Government Relations

All primary approvals necessary for the Etango project are in place, including environmental licenses, mining licenses, and Heritage Council approvals. The company recently hosted a positive site visit from the Executive Director and Mining Commissioner from Namibia's Mining Ministry, who expressed satisfaction with the project's progress.

Chamberlain characterised Namibia as "Africa-lite," noting it is "a pleasant place to work." He highlighted the government's ongoing operational engagement even during the current ministerial transition period following elections. The proactive outreach from government officials suggests strong support for the project at operational department levels.

Secondary permits, such as those required for explosives storage during mining operations, will be obtained closer to those activities and are expected to proceed without complications. Regarding uranium export logistics, Bannerman has engaged with multiple logistics companies experienced in handling uranium from Namibia, with a clear understanding of the process from the mine to converter facilities.

Market Conditions & Contracting Strategy

The uranium market has experienced significant volatility, with spot prices declining from highs of $107 to the low $60s in early 2024. Bannerman acknowledges the disconnect between spot prices, term contract prices, and share price performance, but remains focused on patient execution of their strategy.

Matt Horgan emphasised their funding approach: 

"Bannerman has had strong market support for its very disciplined approach to capital allocation, and one of the worst things we could do at the moment is pull the trigger preemptively on a highly dilutive equity raise." 

Instead, the company is maintaining optionality across different funding work streams, including equity investors, debt financing, and strategic project stakeholders.

Regarding offtake agreements, Chamberlain indicated ongoing discussions with utilities, noting genuine interest from potential customers. He explained their contracting philosophy: 

"We will layer in our contracts and we will start at a reasonable level and slowly but surely build up our contracts... we certainly are working on the strategy of laying in contracts to get the highest average possible."

An important advantage for Bannerman is Namibia's established track record in uranium production spanning 46 years, which provides confidence to utilities. Chamberlain noted that most utilities are familiar with Namibia's capabilities, having likely visited operations there over the decades. This familiarity means they're not facing significant country risk discounts in negotiations.

Strategic Positioning & Competitive Advantages

Bannerman's Etango project benefits from several strategic advantages in the current market environment. Matt Horgan highlighted Namibia's political independence as "a real point of strength," particularly amid global geopolitical tensions, as it allows the company to "sell to and continue to sell to many places and secure funding channels and avenues that other projects just may not be able to tap into."

The project's multigenerational nature also attracts potential strategic investors, as Horgan noted: 

"One real key point of attraction is the multigenerational aspect of the project. Etango will be in operation for many decades to come, so the option value of getting your hand on long-life offtake is very attractive to a number of parties."

Chamberlain also emphasised the length of time required to bring new uranium supply to market, noting that Etango is "celebrating 20 years this year" This reality check on development timelines supports the thesis that new supply cannot be rapidly deployed to address market deficits, potentially supporting stronger long-term uranium prices.

Outlook for 2025

Looking ahead, Bannerman anticipates completing roadworks and construction power infrastructure in 2025 while continuing bulk earthworks that will extend into 2026. The company may execute one or two additional contracts depending on market conditions and funding progress.

Chamberlain expressed cautious optimism regarding financing: 

"I do think before the end of this year we will see some form of movement on final financing solutions, be that whatever that mix may be." 

However, he emphasised they won't commit to a specific final investment decision date, preferring to be guided by market conditions.

In the meantime, Bannerman continues to advance all aspects of the project that can be prudently progressed within their current financial capacity, maintaining development momentum while awaiting more favourable market conditions for major funding decisions.

The Investment Thesis for Bannerman Energy

• Advanced Development Stage: Etango project has completed early works including access road, water infrastructure, with ongoing internal roadworks, construction power implementation, and bulk earthworks, positioning it among the more advanced uranium development projects globally.
• Strategic Asset in Favourable Jurisdiction: Located in Namibia, a stable mining jurisdiction with 46 years of uranium production history and the ability to sell to both Eastern and Western markets without significant geopolitical constraints.
• Strong Financial Position: AUD$81 million cash position (end of 2024) with no debt provides runway well into 2026, allowing patient execution of development strategy without immediate financing pressure.
• Prudent Risk Management: Breaking contracts into smaller packages for Namibian contractors, securing escalation formulas during competitive bidding, and advanced engineering design work all reduce execution and cost risks.
• Clear Path to Production: All primary approvals in place with a target to bring uranium to market by 2028, amid an expected supply deficit in uranium markets.
• Multigenerational Asset: Long-life operation attractive to strategic investors and utilities seeking supply security over decades, enhancing funding options and offtake potential.
• Disciplined Management Team: Demonstrated capital discipline and methodical project execution, recently strengthened by the addition of Matt Hine who brings relevant experience in development project financing.
• Market Timing Advantage: Advancing through construction while many competing projects remain conceptual, positioning Bannerman to potentially benefit from higher uranium prices driven by growing nuclear power demand and supply constraints.

Uranium Market Analysis: The Supply Constraint Opportunity

The uranium market is experiencing a structural shift driven by significant supply constraints against a backdrop of growing demand. As utilities increasingly recognise the role of nuclear power in clean energy transitions, the gap between future demand and planned production capacity is widening. Bannerman's CEO Gavin Chamberlain highlighted a critical factor often overlooked by market participants: the lengthy timeline required to bring new uranium projects online.

"If anyone wants to get a feel for how long it takes to build a mine, even in Namibia, which is Africa-lite, and is really user-friendly, it's taken us 20 years and there's lots of factors that feed into that... you don't just go out there and turn on a uranium mine overnight."

This reality underpins the supply constraints facing the market. Even with higher uranium prices, significant new production cannot be rapidly deployed. Utilities are responding by diversifying their supply sources, signing smaller contracts with multiple producers rather than relying on traditional major suppliers. This trend favours advanced projects like Etango that can demonstrate credible paths to production.

Meanwhile, geopolitical tensions are accelerating the reorientation of uranium supply chains. Western utilities face increasing pressure to reduce dependence on Russian-affiliated sources, which currently controls about 44% of global uranium enrichment capacity. Namibia's political independence positions Bannerman favourably in this environment, able to serve both Eastern and Western markets without the geopolitical complications affecting projects in other jurisdictions.

With current uranium prices still below levels needed to incentivise substantial new production, and lead times measured in years rather than months, the supply deficit appears set to persist longer than many anticipate, potentially supporting stronger pricing when Bannerman targets production in 2028.