Bannerman Energy has announced an investment of around N$750 million to date on operations and exploration for its Etango uranium project in Namibia.
Werner Ewald, the company’s Managing Director in Namibia, stated that the company is now implementing a strategic financing strategy to raise capital for the mine’s construction.
“We refer to it as strategic funding because we are not following the traditional route of acquiring debt-equity. For a single asset company like us, equity is too expensive to finance in the long run,” Ewald explained.
He added that the company is considering shareholder offtake, among other methods, to raise capital. He further noted that around 760 additional permanent jobs are expected once the operation is fully functional.
“During the construction period, we expect a peak of about 1,100 employees, with construction expected to be completed in 2027,” he said.
This announcement comes as Bannerman Energy states it would require over US$320 million in pre-production funding after a definitive feasibility study (DFS) into its Etango uranium project in Namibia confirmed the project’s economic viability.
According to the DFS, pre-production capital expenditure (capex) is estimated at US$317 million, up from the US$274 million estimated in 2021. The Australian-listed uranium development company’s all-in-sustaining costs (AISC) for the project have dropped from the US$40.3/lb estimated in the PFS to $38.10/lb.
Based on a nameplate capacity of eight million tonnes a year, the Etango project is expected to have a mine life of one year, producing 52.6 million pounds of uranium oxide, averaging 3.5 million pounds a year.
The project’s net present value (NPV) is now estimated at N$3.63 billion (US$209 million), down from the N$3.9 billion (US$222 million) estimated in 2021, while the internal rate of return has also decreased from 20.3% to 17%.
