Show Me the Money: Uranium Attracting New Big Investors

This summary highlights the key talking points from our latest Energy Show interview series on May 26th, 2023, with guest Brandon Munro, who is the CEO and Managing Director of Bannerman Energy. Munro is an accomplished corporate attorney and resources executive with over two decades of professional experience. He held the position of General Manager at Bannerman from 2009-2011 before becoming its CEO in 2016. Living in Namibia for over half a decade (2009-2015), Munro took on advisory roles with the Namibian Uranium Association and the Namibian Chamber of Mines. Recognized as a leading thinker in the uranium industry, Munro has made significant contributions to the World Nuclear Association's Nuclear Fuel Demand working group and the UN Economic Commission for Europe.

What’s happened this week?

Over the past week, the energy sector has given a subtle indication of the heightened volatility it's famous for. The spot price of energy commodities has slightly ascended, surpassing the US$54 per pound mark. This increment, however minor, has made an impact on the market, particularly in the realm of equities investing. Investors, who have been dealing with an excess of anxieties recently, welcomed a 10% surge in share prices. However, this increase wasn't entirely steadfast, as some of the gains evaporated before being solidified. The question then arises: what could be driving this volatility? One potential factor we have been analysing is the activities of the Zuri-Invest AMC – last weeks Moonshot or Fizzer.

The USA, in collaboration with partners from Japan, South Korea, and the United Arab Emirates, announced funding of up to USD275 million to accelerate the deployment of a VOYGR small modular reactor (SMR) plant by NuScale Power Corporation in Romania at the G7 leaders' summit. The funding will support various project activities, including procurement of materials, engineering work, project management, site analysis, and development of budget estimates. Letters of Interest for potential financial support of up to USD3 billion and USD1 billion were also issued by EXIM and the US International Development Finance Corporation, respectively. The funding will support the ongoing FEED phase 1 study to assess the preferred site for the first VOYGR-6 SMR power plant in Romania. The leaders of NuScale Power, Nuclearelectrica, and E-INFRA expressed their enthusiasm for the project and its potential to contribute to global decarbonisation efforts. [link]

Winner of the Week:

Consolidated Uranium earned the title of the week's Winner for their proposed merger and subsequent spinoff of Premier American Uranium Inc. This strategic move has the potential to significantly increase the value of both companies. Brandon Munro, an experienced executive in the sector, underscored why this is a shrewd move. According to him, the rest of the sector should carefully consider this approach as a model for growth and expansion. It not only maximises shareholder value but could also foster innovation and efficiency in operations. The proposed deal is a noteworthy development in the uranium sector, signifying a potentially beneficial shift in the industry's landscape. [link]

This week's Consolation Prize was awarded to Belgium’s Prime Minister Alexander De Croo for recognizing the importance of nuclear energy. He stated that nuclear power "should make its comeback as a reliable and carbon-free baseload for our grids." While this statement may appear obvious to those familiar with the sector, it is a refreshing acknowledgment, especially after Belgium's previous negative publicity as the Bungle of the Week. This public recognition highlights a global understanding of the crucial role nuclear energy plays in providing stable, carbon-free electricity. De Croo's straightforward language underscores the need for policy support for nuclear energy, which is essential in our transition towards a more sustainable and reliable energy future. [link]

Australia’s Bungle

The Australian Labor government has repeatedly drawn attention for its firm stance against even discussing the possibility of lifting the legislative ban on dependable and carbon-neutral nuclear power. This week's misstep serves to highlight the profound lack of foresight that comes with favouring unreachable goals tied to intermittent renewable energy over nuclear power. The recent budget discloses plans to spend a whopping A$19 billion on power infrastructure that won't contribute a single megawatt to the grid. Instead, the sole purpose of this expenditure is to connect future renewable energy sites to electricity consumption areas. A more rational approach to national governance would advocate using these funds to construct 12-15 small modular reactors (SMRs) at existing sites – specifically, decommissioned coal-fired power stations – where infrastructure and consumption needs are already established.

Moonshot or Fizzer?

About 13 Japanese firms, including Onomichi Dockyard and Imabari Shipbuilding, have invested roughly $80 million in a project led by UK startup Core Power to develop a floating nuclear power plant. These floating plants offer many benefits such as size, safety, and cost efficiency. Core Power, majority-owned by Japanese companies, is collaborating with TerraPower, Southern Company, and Orano to develop molten chloride fast reactors, a type of small modular reactor. The floating plants, not requiring earthquake or tsunami protection, can be mass-produced at lower costs and shorter construction time. Core Power plans to commercialize between 2030 and 2032. Despite potential supply chain and regulatory challenges, Japanese companies are excited about the opportunity, especially considering the significant demand for hydrogen and ammonia carriers. [link]

About Bannerman Energy

Bannerman Energy, an Australian listed uranium development company, is primarily known for its advanced Etango Project located in Namibia, a globally significant uranium producer with strong political stability and a supportive infrastructure for uranium mining. Etango, having undergone extensive feasibility studies since its public listing in 2005, boasts a large-scale uranium mineral resource. Environmental approvals are in place for the mine, which is to be developed with strong regard for social responsibility and best-practice governance. In 2022, a Definitive Feasibility Study (DFS) confirmed the viability of an accelerated 8Mtpa development of Etango, known as Etango-8. As of 2023, the company is engaging in Front End Engineering and Design (FEED) work for Etango-8, with a mining license application submitted and parallel off-take and project finance workstreams well underway. A Final Investment Decision on Etango-8 is targeted for H2 2023, subject to uranium market conditions.

Ensure you stay right up to the minute on all developments in the Uranium Sector, and to get Brandon’s reading of all things Uranium, by subscribing at app.opens.co

‍