Bannerman Energy Ltd · ASX:BMN
Bannerman Energy — Investor Presentation (September 2021)
34 slides from Bannerman Energy's investor presentation, Sep 9, 2021
Slide 1: Uranium: Momentum backed by compelling fundamentals
For personal use only Uranium Momentum backed by compelling fundamentals 9 September 2021 ASX:BMN OTCQB:BNNLF
Slide 2: Moderator comment from World Nuclear Fuel Cycle, Miami, April 2019
“We’ll be bringing out the stretchers for all the utility folks who just fainted” World Nuclear Fuel Cycle, Miami, April 2019 For personal use only (Moderator comment after presentation on The Role of Investment Funds) 2
Slide 3: Important notices: Cautionary Statement
Important notices Cautionary Statement For personal use only Of the Mineral Resources scheduled for extraction and recovery in the Etango-8 Pre-Feasibility Study (PFS) production plan, 100% are classified as Measured or Indicated. Bannerman Energy Ltd (Bannerman, the Company) confirms that there are
Slide 4: Important notices: Forward Looking Statements, Competent Person Statement
Important notices Forward Looking Statements Competent Person Statement For personal use only This presentation includes various forward looking statements which are identified by the use of forward looking words Mineral Resources such as “may”, “could”, “will”, “expect”, “believes”, “intend”, “plan
Slide 5: Introduction to Bannerman Energy
For personal use only Introduction to Bannerman Energy ASX:BMN OTCQB:BNNLF 5
Slide 6: Bannerman at a glance
Bannerman at a glance CAPITAL STRUCTURE SHARE PRICE CHART (ASX:BMN) ASX share price (8 Sept 2021) A$0.24 For personal use only 12 month share price range A$0.032 – A$0.26 Shares on issue 1,205 million Market capitalisation A$290 M Options and performance rights 70 million Average daily volume (ASX 1
Slide 7: A world-class uranium asset: Etango-8 Uranium Project
A WORLD-CLASS URANIUM ASSET Etango-8 Uranium Project For personal use only § Globally large-scale resource endowment § Low technical risk § Excellent supporting infrastructure § Established uranium operating jurisdiction § Strong in-country presence and engagement § High scalability 7
Slide 8: Uranium sector: Sprott Physical Uranium Trust (SPUT)
For personal use only URANIUM SECTOR Sprott Physical Uranium Trust (SPUT) an accelerant to strong fundamentals 8
Slide 9: Sprott Asset Management and Sprott Physical Uranium Trust
Sprott Asset Management • 4 bullion trusts worth ~$13B, 250k investors For personal use only • Extensive uranium equities holdings Strategy to grow AUM Sprott Physical Uranium Trust About SPUT • TSX listed, units in CAD and USD • No redemptions (long term sequestration) At-the-market facility (ATM)
Slide 10: SPUT impact on spot price
SPUT impact on spot price ATM facility launched For personal use only SPUT acquisition of UPC announced $40.25 (+5 year high) Source: tradingview.com 10
Slide 11: SPUT purchases since ATM launch
SPUT purchases since ATM launch For personal use only Cumulative U3O8 holding (Mlbs) Daily U3O8 purchases (lbs) Ave daily volume Total spot market (1 April- 31 July) Source: #SPUTTracker by @TheAlexW 11
Slide 12: Short term implications
Short term implications For personal use only ATM raising NAV Buy U3O8 premium Sentiment Price growth growth 12
Slide 13: Short term implications
Short term implications For personal use only YCA URC, ATM raising Juniors Hedge Funds New NAV Vehicles Buy U3O8 premium Robot Producers buying buy U3O8 SPUT Traders ETF flows buy U3O8 (URA, URNM) Sentiment End-users Price growth growth buy U3O8 13
Slide 14: Potential for market disruption
Potential for market disruption For personal use only Weekly Annualised % global annual purchases production 500k lbs 25 Mlbs ~20% 1M lbs 50 Mlbs ~40% 2M lbs 100 Mlbs ~80% You are here 14
Slide 15: Market effects in medium term
Market effects in medium term For personal use only Definitively test mobile Remove carry trade long Utility sentiment shift inventory availability term price suppression (complacent to concern) Fuel buying for reactors US utilities insulated Utilities commence saved from closure from higher fuel pr
Slide 16: Long term fundamentals remain solid
LONG TERM FUNDAMENTALS REMAIN SOLID Momentum phase backed by fundamentals For personal use only World’s largest Electricity growth China remains Implications from economies commit to from “electrification disruptive behemoth SMRs and advanced carbon neutral of everything” through 14th FYP reactors b
Slide 17: Momentum, fundamentals and history
Momentum, fundamentals and history Three Mile GFC commences Island For personal use only Fukushima COVID disruption Down-blended Oil crisis Russian warheads supply ~20% of world market (ended 2013) 17
Slide 18: Etango-8: Bannerman ideally positioned for momentum and fundamentals
For personal use only ETANGO-8 Bannerman ideally positioned for both momentum and fundaments 18
Slide 19: Why Bannerman (in a momentum phase?)
Why Bannerman (in a momentum phase?) For personal use only Scale Leveraged to price Leadership can deliver 19
Slide 20: World class uranium resource
207.8 Mlbs U3O8 Total Etango-only resources For personal use only WORLD CLASS URANIUM RESOURCE 60.3 Mlbs U3O8 Etango-8 Ore reserve Etango-8 resources and reserves1 June 2021 Mineral Resource Estimate Tonnes Grade Contained U3O8 JORC (2012) reported within a US$75 pit shell above a 100 ppm U3O8 cut-o
Slide 21: Strong leverage to potential uranium price increases
STRONG LEVERAGE TO POTENTIAL URANIUM PRICE INCREASES Etango-8 NPV sensitivities (post-tax) For personal use only Selected discount rate sensitivity 4% 6% 8% 10% 12% Post-tax NPV @US$65/lb (US$M) 383 293 222 165 119 21
Slide 22: Why Bannerman (long term fundamentals)
Why Bannerman (long term fundamentals) For personal use only Leadership that delivers Jurisdictional stability Environmental permit shareholder value and low technical risk and community support Production capability Robust economics at Leveraged enhanced by during this cycle scale (3.5Mlbs pa) expa
Slide 23: Summary: World-class Etango-8 Uranium Project, Namibia
For personal use only SUMMARY World-class Etango-8 Uranium Project, Namibia 23
Slide 24: Etango-8: A world-class uranium asset
ETANGO-8 A world-class uranium asset For personal use only Globally significant Robust economics and Environmental approvals output of 3.5 Mlbs pa low hurdles to with strong community with further expansion development and government support scalability Namibia a premier Low technical risk Streamlin
Slide 25: Contact
For personal use only CONTACT Brandon Munro Chief Executive Officer E: info@bmnenergy.com T: +61 8 9381 1436 @BannermanEnergy @Brandon_Munro 25
Slide 26: Appendices
For personal use only APPENDICES A world-class uranium asset 26
Slide 27: Highly robust physical parameters and strong projected economics
HIGHLY ROBUST PHYSICAL PARAMETERS AND STRONG PROJECTED ECONOMICS Key Etango-8 PFS outcomes1 For personal use only 15 years 2.07 : 1 US$65/lb US$222M Initial mine life Strip ratio (waste:ore)2 LOM U3O8 price Post-tax NPV8% 8 Mtpa 87.8% US$39/lb 3.8 years Throughput capacity Processing yield Cash opex
Slide 28: Substantial value enhancement potential
SUBSTANTIAL VALUE ENHANCEMENT POTENTIAL Future life extension and/or scale up expansion For personal use only Final Etango-8 Interim 20Mtpa Etango Final 20Mtpa Etango 8Mtpa development 2021 PFS Pit 2015 DFS Pit2 2015 DFS Pit2 (8 pushbacks) (6 pushbacks) (8 pushbacks) retains flexibility to expand to
Slide 29: The path forward
Months to delivery +3 +6 +9 +12 +15 +18 +21 +24 +27 +30 +33 +36 +39 +42 +45 +48 (from 30 Sept 2021) For personal use only DFS THE PATH FORWARD Approvals, Financing Production targeted for 2025 Engineering Construction Production/ ramp-up 2022 2023 2024 2025 29
Slide 30: Comprehensive technical disclosure
For personal use only COMPREHENSIVE TECHNICAL DISCLOSURE Detailed PFS information See the 113 page PFS announcement here: https://bit.ly/37dBrIZ See: www.bannermanenergy.com/presentations/ 30
Slide 31: Bannerman team
Bannerman team Strong and experienced board Skilled management with Namibian expertise For personal use only § 20+ years’ transactional and financing experience as a § 40+ years’ investment banking experience incl. head of corporate lawyer and resources executive. Ronnie Beevor Brandon Munro Rothsch
Slide 32: Premier uranium development jurisdiction: Namibia
PREMIER URANIUM DEVELOPMENT JURISDICTION Namibia For personal use only ü 45 year production history ü Top 4 global uranium player ü Politically/socially supportive ü Excellent infrastructure: port/road/rail/water/power First class operating jurisdiction ü Stable and secure ü Strong Rule of Law ü Tra
Slide 33: Strong position via substantial body of work and engagement
STRONG POSITION VIA SUBSTANTIAL BODY OF WORK AND ENGAGEMENT Social licence to operate For personal use only § Environmental baseline since 2008 Environmental § High-quality, peer reviewed ESIA credentials completed in 2009 § Environmental approvals granted § An acknowledged leader in Corporate Socia
Slide 34: Well delineated and understood tenure and approvals processes
WELL DELINEATED AND UNDERSTOOD TENURE AND APPROVALS PROCESSES Tenure and permitting For personal use only Mineral Deposit Retention Environmental Clearance Licence (MDRL) secures Certificate awarded for tenure over Etango Etango mine Environmental Clearance Five-year extendable term Certificate awar
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