Bannerman Energy Ltd reported significant progress in its flagship Etango Uranium Project in Namibia for the quarter ending September 2024, as the company moves towards a targeted final investment decision in 2025.
The company completed the first phase of early works, including the construction of a 700-cubic-meter water reservoir and access road, with these projects delivered safely, on time, and within budget.
Bannerman Executive Chairman Brandon Munro highlighted the project’s momentum, noting that the quarter ended in September and marked another period of strong progress for Bannerman.
He credited the recent A$85 million equity placement for enabling the transition to the next phase of construction activities and the procurement of key equipment, such as the High-Pressure Grinding Rolls (HPGR) tertiary crusher, which is now under manufacture.
“The Etango financing process also progressed during the quarter, as we compared a range of conventional and strategic funding opportunities that reflect the growing interest in long-term uranium supply,” he said.
The company awarded contracts for 24-month bulk earthworks, essential for the project’s critical path, and construction power.
Negotiations for permanent water and power supply have progressed to advanced stages.
Bannerman’s strong financial position, with a cash reserve of A$95.7 million and no debt, allows it to strategically pursue various financing options, including project debt and joint venture opportunities.
During the quarter, A$7.6 million was invested in exploration and development activities for Etango.
The uranium market has experienced an uptrend, with the long-term price of uranium reaching US$82 per pound, the highest in 15 years.
Market factors contributing to this increase include supply constraints due to logistical challenges faced by Kazatomprom, the world’s largest uranium producer, which has been forced to use an alternative transport route through Azerbaijan, resulting in higher costs and delays.
Additionally, the potential for future restrictions on Russian uranium exports has heightened concerns over supply security.
“The rising demand for nuclear energy from sectors such as data centres and artificial intelligence, coupled with major financial institutions’ commitment to supporting nuclear projects, has bolstered confidence in the sector,” he said.
Bannerman’s approach is to leverage its flexible ‘phased greenlight’ strategy to align development with favourable market conditions.
The company remains patient with its offtake strategy, opting not to rush into long-term contracts until conditions align more closely with market fundamentals.
“Our strong balance sheet and flexible approach to project development enable us to exercise a gated approach to Etango development, with phased green lighting of various construction works in line with advancement across broader project workstreams and financial capacity,” Munro said.
With a 95% ownership stake in the Etango Project, Bannerman is advancing towards its goal of producing up to 6.7 million pounds of uranium annually, following a scoping study completed in March 2024.
