Licenced & Funded Advanced OTC-listed Uranium Developer to Capitalise on Prolonged World Shortage

• Bannerman Energy has a large, fully permitted uranium project called Etango in Namibia, ready for construction with engineering completed.
• They have $37 million cash on hand, enough to get them to final investment decision without needing to raise additional funds.
• Uranium spot prices have hit $100/lb, but Bannerman is being patient about contracting to capture full value from rising prices.
• They have multiple financing options beyond typical project financing, including industry partnerships which provide better alignment.
• As a construction-ready project, Bannerman is positioned to be a first mover supplying fuel for the nuclear power industry's growing demand.

Well-Positioned to Capitalize on Strong Uranium Market Fundamentals

Uranium developer Bannerman Energy stands ready to commence construction on its fully permitted Etango project in Namibia amid surging uranium prices, tightening supplies, and growing utility demand. With engineering completed and its mining license secured, Bannerman has first-mover advantage to become a reliable large-scale supplier to nuclear power generators.

Interview with Managing Director & CEO, Brandon Munro

Favorable Jurisdiction

Located in Namibia, the world’s third largest uranium producing nation, Etango benefits from the country’s long history and extensive infrastructure supporting uranium mining operations. Manding Director and CEO Brandon Munro emphasized Namibia’s track record: “Namibia is really the premier uranium jurisdiction to develop a big asset in...it does big open pit bulk tonnage mines very well they've been doing it for 45 years." The project’s conventional features should give utilities confidence in reliable production. As Munro stated, “it’s the simplest uranium project in the whole world. Utilities, who are not in the mining business can feel comfortable that we are going to come into production.”

Large, Expandable Resource

With a resource base of over 200 million pounds of U3O8, Etango is capable of large-scale production to fulfill long-term supply agreements. The initial phase involves mining and processing 8 million tons per year, yielding 32 million pounds over 15 years – enough to power 7 to 8 average-sized nuclear reactors. The deposit remains open, allowing future expansions to 7 million pounds per year product. According to Munro, “What that expansion would do is it would just lift our run rate, it means that we're accessing more of the ore body a little bit earlier, but given how massive our resource is and the fact that it all continues under the existing pit shell...this will be a multi-decade mine.”

Funding Secured Through Construction

In a strong financial position with no immediate funding needs, Bannerman ended 2023 with $37 million cash. Munro explained this is sufficient to reach a final investment decision (FID): “We don't burn very fast...so cash to FID is no problem." It also enables early infrastructure investments to accelerate construction: “We can use that cash balance for relatively inexpensive capital expenditures that just make sure we're constantly at a walking start to be ready with construction."

Munro asserted their readiness: “It’s not about having a feasibility study and a mining license, it’s about having a team where the engineers are working, you're interacting with potential vendors, you're working with detailed designs so that when you hit that FID moment you're straight into construction and that is an extremely important element of timing.”

Taking Advantage of Strong Pricing Environment

With uranium spot prices exceeding $100/lb, Bannerman looks to capture significant value. Munro explained they are exercising patience around contracting, allowing time for prices to reflect market fundamentals: “There’s some catchup to be done for the term contracting conditions to start reflecting the real that we're seeing in the spot Market...we don't want to jump at that.”

He expressed confidence utilities would offer reasonable terms, aided by Bannerman’s advanced status: “Number one the pricing dynamic is very favourable and getting better for us, secondly we can talk to utilities with a construction-ready project that they know that's being in front of them for many years that are technically simple so they're not concerned about our delivery."

Valuing Bannerman Based on Costs and Uranium Price Assumptions

According to Munro, Bannerman’s all-in-sustaining costs for producing uranium from Etango are estimated at around $40 per pound. This provides a competitive cost position compared to the current spot price of over $100/lb. He states that at an assumed $80 per pound selling price, Etango would generate an after-tax net present value (NPV) of $435 million. This NPV calculation uses an 8 million tonne per year operation producing 32 million pounds over 15 years from the initial pit area.

Every one-dollar per pound increase in the uranium selling price assumption contributes directly to Bannerman's bottom-line economics. This demonstrates substantial leverage to higher prices as the current structural supply deficit pushes nuclear utilities to pay inflated rates to fulfil demand. The relatively modest $375 million Etango capex implies capital efficiency below $100 per production pound, in line with industry benchmarks for attractive projects. Such low capital intensity combined with phased expansion potential across Etango’s very large resource signals high returns on invested capital.

Furthermore, Bannerman’s focus as a single-asset company concentrates shareholder exposure on Etango. Upside from higher uranium prices or contracted volumes directly accrues to shareholders rather than being diluted across a broader portfolio.

Given these factors, Bannerman offers leveraged upside compared to its current sub-half-billion dollar market capitalization. As the first wave of unmet utility demand flows into contract negotiations, the company is positioned to translate higher prices into dramatically increased NPV estimates - easily justifying multiples of its current value.

Diverse, Flexible Financing Options

Rather than typical project financing, Bannerman is considering more advantageous funding structures like industry partnerships. Munro cited better alignment and flexibility from such strategic investors:

“We’re getting shown a lot of Industry money at the moment. But I want financial partners who want to see the pounds come out of the ground.” With cheaper capital and creative deal structures that require less equity, Bannerman aims to limit shareholder dilution.

Munro suggested the comparatively small $300 million Etango capex makes it attractive for industry players already invested in far costlier nuclear power plants: “When you consider the capital cost of the reactors that they've already built...$40 billion against a $300 million required to build a mine...it's inconsequential. hat's going to service those reactors for decades.”

First Mover in Tight Market

Commissioned mines take years to develop. Yet unrestrained demand growth and supply curtailments necessitate new production within this decade. Munro warned, “There can be a window where we can have our cake and eat it...behind that of course, that's when we would need to build out the bulk of our portfolio.”

With very few large-scale construction-ready deposits beyond Etango and Global Atomic’s Dasa project, Bannerman holds a prime position.

Competing projects, according to Munro, won’t achieve similar readiness anytime soon. “It’s not like that handful is going to grow in six months, it’s not going to grow in 12 months...we're in utterly rarified air.”

Etango’s simple, low-cost open pit operation and Bannerman’s strong balance sheet position the company to contract substantial volumes from utilities acting quickly to fill uncovered needs.

Munro summarized their advantage: “One of those handful of decent size projects shovel ready...and we can afford to wait for the market conditions that we think best benefit our stakeholders.”

Investment Thesis Bullet Points

• Construction-ready asset with completed engineering de-risks execution risk as uranium prices continue rising
• Solid financial footing funds progress towards production without shareholder dilution
• Conventional open pit, heap leach process in proven mining jurisdiction provides reliability
• Substantial resource supports decades of production with built-in expansion potential
• First mover advantage lets Bannerman contract volumes to global utilities acting urgently
• Diverse financing options allow flexible structures beyond typical project financing

Bannerman Energy presents probably the most compelling advanced uranium developer investment case thanks to Etango’s scale, quality, and advanced preparation combined with a fortuitously timed market shortage just as the company reaches construction readiness. As a likely first supplier into an accelerating uranium bull market, Bannerman looks positioned to create substantial value for shareholders while delivering much-needed fuel to electricity generators. Investors seeking leverage to higher uranium prices would do well to evaluate this nearly-built project with permits in hand and financing options secured.