Slide 1: Etango-8 Pre-Feasibility Study
Etango-8 Pre-Feasibility Study August 2021 ASX:BMN OTCQB:BNNLF NSX:BMN
Slide 2: Important notices
Important notices Cautionary Statement Of the Mineral Resources scheduled for extraction and recovery in the PFS production plan, 100% are classified as Measured or Indicated. Bannerman confirms that there are no Inferred Resources included in the PFS production schedule. The Mineral Resources under
Slide 3: Important notices
Important notices Forward Looking Statements Competent Person Statement This presentation includes various forward looking statements which are identified by the use of forward looking Mineral Resources words such as “may”, “could”, “will”, “expect”, “believes”, “intend”, “plan”, “estimate”, “antici
Slide 4: Bannerman at a glance
Bannerman at a glance CAPITAL STRUCTURE SHARE PRICE CHART (ASX:BMN) ASX share price (30 July 2021) A$0.16 12 month share price range A$0.032 – A$0.220 $0.25 Shares on issue 1,189 million $0.20 Market capitalisation A$190 M $0.15 Options and performance rights 70 million Average daily volume (ASX 1-m
Slide 5: Etango-8 Uranium Project
A WORLD-CLASS URANIUM ASSET Etango-8 Uranium Project § Globally large-scale resource endowment § Low technical risk § Excellent supporting infrastructure § Established uranium operating jurisdiction § Strong in-country presence and engagement § High scalability 5
Slide 6: Key PFS Outcomes
KEY PFS OUTCOMES An accelerated project development with strong financial returns 6
Slide 7: Study rationale and team
A SUBSTANTIAL BODY OF EXISTING TECHNICAL AND FEASIBILITY WORK Study rationale and team • Etango Project advanced study history – Definitive Feasibility Study 2012 (DFS 2012); 20Mtpa throughput; estimation accuracy of ±15%1 – DFS Optimisation Study (OS 2015); 20Mtpa throughput; estimation accuracy of
Slide 8: Key conclusions
CONFIRMS STRONG TECHNICAL AND ECONOMIC VIABILITY Key conclusions § Confirms strong technical and economic viability of conventional open pit mining and heap leach processing of Etango at 8Mtpa throughput § Informed by vast body of previous technical work across resource drilling, geotechnical, metal
Slide 9: Key outcomes
HIGHLY ROBUST PHYSICAL PARAMETERS AND STRONG PROJECTED ECONOMICS Key outcomes 15 years 2.07 : 1 US$65/lb US$222M Initial mine life Strip ratio (waste:ore)1 LOM U3O8 price Post-tax NPV8% 8 Mtpa 87.8% 20.3% 3.8 years Throughput capacity Processing yield Post-tax IRR Payback (post-tax) 3.5 Mlb U3O8 Ave
Slide 10: Strong continuity with Scoping Study results
HIGHER ACCURACY ESTIMATES Strong continuity with Scoping Study results Key metric PFS Scoping Study Unit Change (Aug 2021) (Aug 2020) Total ore throughput Mt 117.6 114.1 + 3% Annual process throughput Mtpa 7.8 7.9 - 1% Initial life-of-mine years 15.0 14.4 + 4% Average strip ratio (waste:ore) t:t 2.0
Slide 11: Key upside opportunity
SUBSTANTIAL VALUE ENHANCEMENT POTENTIAL Key upside opportunity Future life extension and/or Final Etango-8 Interim 20Mtpa Etango Final 20Mtpa Etango scale-up expansion 2021 PFS Pit 2015 DFS Pit 2015 DFS Pit (8 pushbacks) (6 pushbacks) (8 pushbacks) § Globally large, sole-Etango resource of 207.8Mlbs
Slide 12: Social licence to operate
STRONG POSITION VIA SUBSTANTIAL BODY OF WORK AND ENGAGEMENT Social licence to operate § Environmental baseline in place since 2008 § High-quality, peer reviewed Environmental and Social Impact Assessment completed in 2009 § Environmental approvals granted in 2010 (Etango Project) and 2012 (Linear In
Slide 13: The path forward
PROGRESSION TO DFS APPROVED The path forward § Etango-8 DFS to commence immediately with targeted completion in September 2022 quarter § No further exploration/resource drilling planned given over 150Mlb U3O8 already in M&I resource classification § Through DFS process, focus group meetings with key
Slide 14: Mining and Processing
MINING AND PROCESSING Low-strip mining with a heavily de-risked process route 14
Slide 15: Geology
SIMPLE ALASKITE HOSTED URANIUM GEOLOGY Geology § Uranium mineralisation predominantly hosted by a stacked sequence of leucogranitic bodies (alaskite) § Uranium defined within an approximately +5km long zone trending south-east to north-east that dips moderately (30° to 50°) to the west § Dominant pr
Slide 16: Mineral Resource
A WORLD-CLASS URANIUM RESOURCE Mineral Resource § Drillhole database of 939 holes (105 diamond and 834 RC) for 239,032 m § Mineral Resource review completed in 2021 (Optiro), at 100 ppm cut-off § June 2015 Mineral Resource (at 55 ppm cut-off) remains unchanged § Parent blocks of 25 x 25 x 8m, sub-ce
Slide 17: Pit parameters and mine design
CONVENTIONAL MINING OPERATION Pit parameters and mine design § Conventional truck and shovel open pit operation § Contract mining § Radiometric truck scanning employed as the definitive grade control process, as is common practice in large scale open pit uranium mines in Australia and Namibia § Fres
Slide 18: Mine schedule
LOW AVERAGE LOM STRIP RATIO OF 2.1x Mine schedule § Total ore mined of 117.6Mt at 232 ppm U3O8 § Approx. 15 year initial life of mining operations § Average strip ratio of 2.07 § Maiden Etango-8 Ore Reserve estimate § Still delivers real optionality for potential future phases of expansion, includin
Slide 19: Metallurgy and process inputs
HEAVILY STUDIED METALLURGICAL PARAMETERS Metallurgy and process inputs § DFS-standard met testwork programs previously conducted at both ALS Ammtech and Bureau Veritas Key process design parameters § Comminution, heap leach column and cribs, acid usage, SX, Ion Exchange (IX) and Nano-Filtration (NF)
Slide 20: Process flowsheet and plant design
A HIGHLY DE-RISKED PROCESS ROUTE Process flowsheet and plant design § Gyratory primary crusher, secondary cone crusher and tertiary HPGR (high pressure grinding roll) unit § Water, sulphuric acid and binder agent are then added, and the agglomerated ore is transferred to the heap leach stacking syst
Slide 21: Production schedule
FORECAST AVERAGE ANNUAL PRODUCTION OF OVER 3.5 MLBS Production schedule § Strategic ROM ore stockpile used to manage tonnage and grade of ore feed to the plant § Initial plant ramp-up period of 12 months to attain nameplate capacity of 8 Mtpa throughput and recovery of 87.8% § Forecast average LOM U
Slide 22: Infrastructure and Logistics
INFRASTRUCTURE AND LOGISTICS A premium location 22
Slide 23: Site layout
IN-LINE WITH PREVIOUSLY OPTIMISED CONFIGURATION Site layout § Plant location same as in DFS 2012 § Waste rock dumps sited adjacent to the open pit § Primary crusher located adjacent to the open pit and is linked to the process plant by a 2.5km overland conveyor § Heap leach pads are located southwes
Slide 24: Power and water
READILY AVAILABLE POWER AND WATER SOLUTIONS Power and water Power • Power to be provided by Nampower, the national power utility company • Significant upgrades of Nampower’s generation and distribution capacity have taken place since 2015 • Planned 29 km, 132 kV transmission line from the Kuiseb sub
Slide 25: Product transport and port logistics
ESTABLISHED, SAFE AND EFFICIENT URANIUM EXPORT INFRASTRUCTURE Product transport and port logistics § C28 road from Swakopmund passes ~5km to the south of Etango; planned construction of a spur road to site § C34 provides a safe route for trucking of final product to Walvis Bay (and sulphuric acid to
Slide 26: Social Licence to Operate
SOCIAL LICENCE TO OPERATE Strong community engagement and support 26
Slide 27: Environment and community
ESTABLISHED AND DEEP IN-COUNTRY PRESENCE AND ENGAGEMENT Environment and community • Environmental and Social Impact Assessment (ESIA), reflecting the DFS 2012, currently valid until October 2021 and in process of further renewal • Environmental Clearance (EC) for linear infrastructure renewed and cu
Slide 28: Tenure and permitting
WELL DELINEATED AND UNDERSTOOD TENURE AND APPROVALS PROCESSES Tenure and permitting • Bannerman currently holds a Mineral Deposit Retention Licence (MDRL) over the Etango Project area (7,295 ha) • MDRL 3345 provides strong and exclusive rights to tenure and the right (without obligation) to continue
Slide 29: Capital and Operating Costs
CAPITAL AND OPERATING COSTS Higher accuracy estimates 29
Slide 30: Capital cost
HIGHLY ATTRACTIVE PRE-PRODUCTION CAPITAL INTENSITY OF APPROX. US$78/LB PA CAPACITY Capital cost Pre-production capital expenditure US$M • Forecast pre-production capex of US$274M Mining 9.2 Owner’s team – infrastructure 0.9 • Estimated at ±20% accuracy level Contractor mobilisation 4.2 Owner’s team
Slide 31: Operating cost
ROBUST CONSTRUCTION OF FORECAST OPEX Operating cost • Projected LOM opex (excl. royalties/levies) of US$37.4/lb Operating cost segment LOM US$M US$/t ore US$/lb % Mining 885 7.53 16.73 45% Contract mining 867 • Including all royalties/levies, total cash opex is Owner’s team 18 US$39.5/lb Processing
Slide 32: Financial Forecasts
FINANCIAL FORECASTS Strong project economics 32
Slide 33: Uranium market: LOM price estimate of US$65/lb
URANIUM MARKET LOM uranium price estimate of US$65/lb § Most market commentators expect uranium long term contract prices to substantially and sustainably increase in the next 12-36 months § Highly favourable sector dynamics – Firm existing baseline demand – nuclear power provides 10% of global elec
Slide 34: Key financial metrics
Key financial outcomes Scoping ROBUST ECONOMIC PARAMETERS Unit PFS Study Price inputs Key financial metrics LOM average uranium price US$/N$ Valuation, returns and key ratios US$/lb U3O8 N$ 65 16 65 16 NPV8% (post-tax, real basis, ungeared) US$M 222 212 NPV8% (pre-tax, real basis, ungeared) US$M 386
Slide 35: Life-of-mine cashflow profile
HEIGHTENED CASH GENERATION IN FIRST FOUR YEARS Life-of-mine cashflow profile § Forecast pre-production capital intensity of approx. US$78 per pound of average annual U3O8 production capacity § Post-tax payback of 3.8 years from first production 35
Slide 36: Valuation and return sensitivities
STRONG LEVERAGE TO POTENTIAL URANIUM PRICE INCREASES Valuation and return sensitivities Selected discount rate sensitivity 4% 6% 8% 10% 12% Post-tax NPV (US$M) 383 293 222 165 119 36
Slide 37: Latent scale-up opportunity
STRONG REAL OPTION ON FUTURE EXPANSION Latent scale-up opportunity • Clear potential for future life extension and/or scale-up expansion • Globally large, sole-Etango resource of 207.8Mlbs U3O8 (at 100ppm cut-off) (13.3Mlbs Measured, 137.1Mlbs Indicated and 57.4Mlbs Inferred)1 • 8Mtpa development re
Slide 38: Key risks
SOLID UNDERSTANDING AND MITIGATION STRATEGIES GIVEN DEPTH OF PREVIOUS STUDY WORK Key risks • U3O8 price • Exchange rate exposure • Key input prices and opex estimates • Capital cost inflation • Geological interpretation and resource • Utility supply • Labour and training • Royalties, levies and taxe
Slide 39: Summary
SUMMARY A world-class uranium asset 39
Slide 40: Etango-8: A world-class uranium asset
ETANGO-8 A WORLD-CLASS URANIUM ASSET 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 through Streamlined development
Slide 41: Contact
CONTACT Brandon Munro Chief Executive Officer E: info@bmnenergy.com T: +61 8 9381 1436 @BannermanRes @Brandon_Munro 41
Slide 42: Appendix A: Bannerman team
Appendix A: Bannerman team Strong and experienced board Skilled management with Namibian expertise § 20+ years’ transactional and financing experience as a § 40+ years’ investment banking experience incl. head corporate lawyer and resources executive. Ronnie Beevor Brandon Munro of Rothschild Austra