Bannerman Energy Ltd · ASX:BMN
Bannerman Energy — Africa Down Under 2017
19 slides from Bannerman Energy's conference presentation, Sep 7, 2017
Slide 1: Uranium: why the bear will mother a bull
For personal use only Uranium: why the bear will mother a bull Brandon Munro, CEO Africa Down Under, 7 September 2017
Slide 2: Important notices
Important notices 2 Technical disclosures and forward looking disclaimers Certain disclosures in this report, including management's assessment of Bannerman’s plans and projects, constitute forward looking statements that are subject to numerous risks, uncertainties and other For personal use only f
Slide 3: Bannerman at a glance
Bannerman at a glance 3 Capital structure Focused on 95% owned Etango uranium project in Namibia ASX share price A$0.035 For personal use only 12 month share price range A$0.02 - 0.095 Sector leading valuation leverage to uranium price increases Shares on issue 849 million Market capitalisation A$30
Slide 4: Why uranium?
Why uranium? 4 Climate change policy promotes Global tensions produce return to energy nuclear power for clean, base load For personal use only security and supply risk mitigation power credentials Geopolitical Chinese nuclear build-out creates factors Under-investment in uranium unprecedented deman
Slide 5: Uranium history – spot price (nominal)
Uranium history – spot price (nominal) 5 2007: almost For personal use only US$140/lb 2017: only US$20/lb
Slide 6: Uranium history – spot price (real)
Uranium history – spot price (real) 6 4 years above US$140/lb For personal use only
Slide 7: Uranium history – long term cycle with catalysts
Uranium history – long term cycle with catalysts 7 Three Mile Island GFC commences For personal use only Chernobyl Soviet Union Fukushima ERA collapses disrupted by cyclones HEU Deal Oil crisis NUEXCO McArthur bankruptcy River Flood Cigar Lake Floods Three mines policy
Slide 8: Why are spot and term prices in the doldrums?
Why are spot and term prices in the doldrums? 8 Kazakh uranium production 2001-2015 For personal use only * Industry average price (UxC and TradeTech) Source: UxC, Cameco
Slide 9: Why are spot and term prices in the doldrums?
Why are spot and term prices in the doldrums? For personal use only 9 * Industry average price (UxC and TradeTech) Source: UxC, Cameco
Slide 10: The market is set to tighten
The market is set to tighten 10 Mlbs U3O8 Secondary 2017 240 Structural deficit For personal use only supplies fill 215 current deficit balanced by secondary ~65 Mlbs supply 190 ~25 Mlbs 165 2019 140 Structural deficit 115 widening 90 65 2020 40 Secondary supply tapering 15 -10 2017E 2018E 2019E 202
Slide 11: …with potential short term catalysts
…with potential short term catalysts 11 Uranium sector price catalysts Kazatomprom set to become price-maker For personal use only Kazatomprom supply discipline Japanese restarts (7-9 reactors by end 2017) Mine supply disruption * Source: Kazatomprom Geopolitical disruption Oil price increases Term
Slide 12: Supply side constraints
Supply side constraints 12 EARLY STAGE OR ON CARE & CONCEPTUAL STUDY MAINTENANCE For personal use only KAYELEKERA RABBIT LAKE (ASX: PDN) (TSX: CCO) ADVANCED FEASIBILITY WORK DEVELOPMENT HONEY MADAOUELA ARROW YELEERIE (TSXV: GXU) MOON (TSX/NYSE: NXE) (ASX: (TSX: CCO) MULGA BOE) ROCK (ASX: VMY) ETANGO
Slide 13: Supply side constraints
Supply side constraints 13 EARLY STAGE OR ON CARE & CONCEPTUAL STUDY MAINTENANCE For personal use only KAYELEKERA RABBIT LAKE (ASX: PDN) (TSX: CCO) ADVANCED FEASIBILITY URANIUM WORK MARKET NEW VOLUME REQUIREMENT DEVELOPMENT 65 mlbs U3O8 HONEY MADAOUELA ARROW YELEERIE (TSXV: GXU) MOON (TSX/NYSE: NXE)
Slide 14: Limited supply side diversity in an unstable world
Limited supply side diversity in an unstable world 14 20 Operating mine For personal use only Etango is the largest advanced Pro forma 2016 ura nium production (mlbs U 3O8 pa) 18 uranium development project Construction 16 or mine not currently owned Study phase by a global uranium major or 14 On ca
Slide 15: Etango uranium project - refresher
Etango uranium project - refresher 15 No development roadblocks Etango Project Heap Leach Demonstration Plant For personal use only DFS completed (NI 43-101) ü Mining optimised 2015 ü Processing optimised 2017 ü DFS Update 2018 Heap leach demonstration plant program completed. Confirmed: ü High reco
Slide 16: Namibia a globally significant producer
Namibia a globally significant producer 16 Uranium mine production by country (2016) Namibia’s uranium credentials For personal use only 30,000 Effective uranium jurisdiction ü Rössing uranium mine in operation for 40+ years ü 3 new uranium mines developed in last 10 years 25,000 ü Regulatory experi
Slide 17: …and first class operating jurisdiction
…and first class operating jurisdiction 17 ü Stable government and fiscal regime For personal use only ü Strong rule of law ü Safe and secure ü Established and transparent mining legislation ü Excellent regional infrastructure ü Established supply chains ü Swakopmund town nearby ü Walvis Bay port an
Slide 18: The right team (deep Namibian uranium experience)
The right team (deep Namibian uranium experience) 18 Brandon Munro Lived in Namibia for 5+ years Former M&A lawyer, last 10 years as mining executive For personal use only (Chief Executive Officer & MD) Prominent in Namibian mining and uranium sectors Former GM of Bannerman, MD of Kunene Resources L
Slide 19: Bannerman is ready to capture considerable uranium upside
Bannerman is ready to capture considerable uranium upside For personal use only 19 Advanced Leveraged Strategic ü 2 year pilot plant program ü Strong anticipated U price ü In premier uranium mining with outstanding results correction jurisdiction: Namibia ü No development ü Sector leading valuation