Could you update our readers on the latest at Bannerman Energy as you are approaching a final investment decision for your flagship Etango project in Namibia?

Since the grant of the Etango mining license in December of last year, we have been advancing several key workstreams for the Etango uranium project in parallel. In March 2024, we published the Etango XT/XP Scoping Study, outlining two embedded growth options beyond our initial base-case Etango-8 build. One is to subsequently double production capacity and the other is to nearly double mine life to approach 30 years. Both future options produced excellent financial metrics and highlight the excellent scalability of Etango following the initial construction of the project.

We also released the results of the FEED and Control Budget Estimate processes in June, which reflected an update and higher accuracy refinement of capital costs in line with today’s input prices. We were pleased to see only an 11% increase in expected pre-production capital expenditure compared to the 2022 DFS. With this detailed exercise completed, we have strong validation of the Etango DFS results and even greater confidence in our projected build profile. 

More recently, we also completed a two-tranche equity placement, which raised new proceeds of A$85 million. This enables us to continue with early works programs and key long lead item orders. 

On that note, I am also pleased to say that the first two early construction works, which were contracted immediately following the mining license grant, have now been completed on time and on budget. These included the installation and construction of the initial access road (linking the national roads to the Mining License boundary) and the water pipeline.

Could you briefly comment on the mining license application process in Namibia for those interested in the country?

We could not be more satisfied with the outcome of our Mining License application. It was a very positive process working with the Namibian government and the Ministry of Mines in Namibia. 

Uranium prices are now exceeding the reference used in the DFS. Is it finally time for uranium projects to take off?

While long term uranium fundamentals continue to strengthen, key market players and global utilities hold their breath as to what may happen in relation to key supply drivers – US sanctions on Russian material play a significant part, as well as whether major producers (such as Kazatomprom and Cameco) can not only sustain but ramp up production over the next two years to meet rising demand.

Looking at uranium demand, we have never seen anything like the current environment. There are now 440 reactors operating today with another 343 being planned, almost doubling global capacity. While demand is being supercharged, we do not yet see an equivalent jump in supply growth, due in part to the lack of mature uranium projects coming online. Uranium players across the globe need to take active steps, through exploration and investment, to catch up. 

Bannerman Energy won the 2023 Mining Indaba Junior ESG Award. Could you speak about your current social and environmental programs in Namibia?

We are co-sponsors of Mondesa Youth Opportunities (MYO) in partnership with the Rotary Club of Swakopmund. MYO is a non-profit trust offering intensive education intervention for students from underprivileged schools who show ability and promise, with an aim to develop the student’s leadership skills, teaching them to be good citizens of the future. 

We are also in our 13th year of our Early Learner Assistance program, an initiative that supports 300 learners each year by providing them basic school necessities, including a school uniform, shoes and a backpack. 

Bannerman has also done an exhaustive amount of study on the environmental side, with one of our focuses being to ensure we leave the landscape as we found it. 

What is next for Bannerman Energy?

Detailed design works have been contracted with Wood Consultants. We are also currently tendering the power contract, as well as placing an order with a local contractor for the extension of the access road into the site. 

Bannerman is fully permitted, construction-ready, and backed by a highly experienced team. We are in the mining-friendly jurisdiction of Namibia, with ready water, power, road, and port solutions that have been exporting uranium for the past 45 years. There is plenty to be excited about over the next 12 months as we approach a targeted Final Investment Decision.