Bannerman Energy Ltd · ASX:BMN
Bannerman Energy — Bannerman Resources — Shareholder Meeting (November 2012)
32 slides from Bannerman Energy's shareholder meeting presentation, Nov 21, 2012
Slide 1: Chairman's Address and CEO Presentation
STOCK EXCHANGE ANNOUNCEMENT 21 November 2012 For personal use only CHAIRMAN’S ADDRESS AND CEO PRESENTATION Perth, Australia – Bannerman Resources Limited (ASX: BMN, TSX: BAN, NSX: BMN) ("Bannerman" or the "Company") attaches the following documents to be delivered at today’s Annual General Meeting:
Slide 2: Chairman's Address
CHAIRMAN’S ADDRESS For personal use only As noted in my letter to shareholders, today is my last day as Chairman of Bannerman. I joined the Bannerman Board in late 2009, approximately 18 months after the incredible highs when uranium reached $160/Ib and uranium company share prices went through the
Slide 3: Chairman's Address (continued)
In this environment, with the DFS in hand, Bannerman is very well placed to move quickly when a positive situation emerges. In the interim the Company needs to consider its options and first and foremost continue reducing its expenditure levels. These have come down significantly since completion of
Slide 4: Well positioned in uranium and pursuing new opportunities
For personal use only Well positioned in uranium and pursuing new opportunities Annual General Meeting, Perth, November 2012
Slide 5: Technical Disclosures and Forward-Looking Disclaimers
Technical Disclosures and Forward-Looking Disclaimers For personal use only This presentation should be read in conjunction with the release by Bannerman Resources Limited dated 10 April 2012 and entitled “Bannerman Reports Positive DFS Results and Milestone Agreement with Namibian State-Owned Minin
Slide 6: Contents
Contents For personal use only 1. Uranium Market 2. Etango Uranium Project 3. New Business Development 4. Summary Resource definition (core) drilling at the Etango site. 3
Slide 7: Uranium Price Drivers
1. Uranium Market Uranium Price Drivers For personal use only Japan – only 2 restarts to date / inventory overhang / conflicting messages re start-ups vs phase out / pre-election. Short China - leadership change and Term safety reviews. Aggressive Chinese long term Long nuclear build program confirm
Slide 8: Asian demand for low emission power is growing significantly
1. Uranium Market Asian demand for low emission power is growing significantly For personal use only 2.5 billion people in China and India – 36 % of global population. Both countries enjoying significant GDP growth. 1 billion people will live in China’s cities by 2030*. China will become the
Slide 9: Demand – Asian Growth Driven
1. Uranium Market Demand – Asian Growth Driven For personal use only # reactors 220 Proposed 433 reactors operating 200 in 30 countries, Planned 180 63 under construction, 160 Under Construction 489 planned and proposed. 140 Operable Reactors China recently stated its 120 intention to increase nucle
Slide 10: Pressure On Existing & New Mine Supply
1. Uranium Market Pressure On Existing & New Mine Supply For personal use only 200 125 Mlbs 150 Mlbs U3O8 100 50 0 2011 Mine 2011-2020 Mine HEU ends 2013 Additional Supply Production Closures Required by 2020 Figures are based on WNA reference forecasts 7
Slide 11: Positive long term sentiment, negative short term sentiment
For personal use only 1. Uranium Market Positive long term sentiment Negative short term sentiment 8
Slide 12: 1. Uranium Market
9 For personal use only 1. Uranium Market
Slide 13: U3O8 v Other Commodities
1. Uranium Market U3O8 v Other Commodities For personal use only 10
Slide 14: Etango Definitive Feasibility Study
2. Etango Uranium Project Etango Definitive Feasibility Study For personal use only • 4 years resource definition, metallurgical testing, feasibility study & environmental impact assessment. • Straightforward mining & processing model. • Completed in April 2012. 11
Slide 15: Etango Site Layout
2. Etango Uranium Project Etango Site Layout N DFS Features For personal use only 16 year mine life & extension opportunities. Produce 6-9 Mlbs U3O8 per year. Ore Reserve 119 Mlbs U3O8. Capex US$870 million. Licence boundary Opex 1st five years US$41/lb U3O8. 32% operating margin for fir
Slide 16: Ore Reserve Estimate based on over 300km drilling
2. Etango Uranium Project Ore Reserve Estimate based on over 300km drilling For personal use only 13
Slide 17: Simple Open Pit Mining
2. Etango Uranium Project Simple Open Pit Mining For personal use only 6km 1km YEAR 16 14
Slide 18: Straightforward stage crushing
2. Etango Uranium Project Straightforward 3 stage crushing For personal use only Primary Crushing 15
Slide 19: Conventional Sulphuric Acid Heap Leaching
2. Etango Uranium Project Conventional Sulphuric Acid Heap Leaching For personal use only 50 day on – off cycle 16
Slide 20: Resource Utilisation Upside
2. Etango Uranium Project Resource Utilisation Upside For personal use only Total U3O8 Mineral Resource comprises 149Mlbs M&I and 64Mlbs Inferred 17
Slide 21: Resource Expansion Upside
2. Etango Uranium Project Resource Expansion Upside 5km For personal use only N Etango Project Area Existing Etango resource (149Mlbs M&I and 64Mlbs Inferred) Etango West Target (blue) Etango Deeps Target (red) Etango South Target (green) Ompo Already drilled (yellow) Additional target (green) Ondja
Slide 22: Global Top 10 Uranium Projects
For personal use only 19 0 50 100 150 200 250 300 350 McArthur River Reflects 100% of projects. 335 Cameco/Areva Husab 320 Extract/CGNPC Source: Bannerman & Versant Partners, August 2012. Ranger/Jabiluka 246 ERA Cigar Lake 209 Cameco/Areva Inkai Cameco/Kazatomprom 135 Langer Heinrich 134 Global Top
Slide 23: Active evaluation of opportunities
3. New Business Development Active evaluation of opportunities For personal use only Leverage exploration and technical evaluation expertise, infrastructure and relationships developed over past 6 years, Not constrained to Namibia, and Announcement with regard to progress will be made as and w
Slide 24: Highly leveraged to the uranium price
4. Summary Highly leveraged to the uranium price For personal use only Relative % change in pre-tax NPV against the U3O8 price 600% % change in pre-tax NPV 500% 500% 400% 300% 200% 100% 33% 0% 75 80 85 90 95 100 US$ U3O8 / lb Historical share price movement v U3O8 spot price Period Spot Price Banner
Slide 25: Well positioned in uranium & pursuing new opportunities
4. Summary Well positioned in uranium & pursuing new opportunities For personal use only 1. Bannerman has: Positioned the top 10 uranium-only Etango Project to benefit from the expected medium term upturn in the uranium price; and A$7.35 million cash as at end September 2012. 2. Bannerman is:
Slide 26: Scale, Simplicity, Substance
www.bannermanresources.com Scale, Simplicity, Substance For personal use only
Slide 27: Recent Uranium Market Activity
APPENDIX Recent Uranium Market Activity Demand For personal use only • Japan paves way for orderly restarts via recently established Nuclear Regulation Authority. • Chinese confirm plan to increase nuclear capacity from 12.5GWE to 40GWe by end 2015. • CGNPC reportedly acquiring 13% of Immouraren pro
Slide 28: Investment Rationale: Erongo Uranium Province
1. InvestmentAPPENDIX Rationale Erongo Uranium Province Extensive uranium inventory and nearby infrastructure For personal use only CGNPC 25
Slide 29: Etango Project Mineral Resource and Ore Reserve Estimates
APPENDIX Etango Project Mineral Resource and Ore Reserve Estimates For personal use only Mineral Resource Tonnes Grade Contained U3O8 (Mt) (ppm U3O8) (Mlbs) Measured 62.7 205 28.3 Indicated 273.5 200 120.4 Measured & Indicated Resource 336.2 201 148.8 Inferred (Etango) 45.7 202 20.3 Inferred (Ondjam
Slide 30: Conventional Process Flowsheet
APPENDIX Conventional Process Flowsheet For personal use only 27
Slide 31: Etango – DFS Pre-Production Capital Costs
APPENDIX Etango – DFS Pre-Production Capital Costs For personal use only US$ DFS Pre-Production Capital Cost Estimate (April 2012) million Mining – fleet, establishment & pre-stripping 127 Process plant 354 Site infrastructure 91 External infrastructure (power, water, rail, road and port) 47 EPCM co
Slide 32: Etango – DFS Cash Operating Costs
APPENDIX Etango – DFS Cash Operating Costs For personal use only First 5 Life-of- DFS Cash Operating Cost Estimate (April 2012) Years Mine Mining: - US$/tonne mined 1.72 1.97 - US$/tonne ore 7.87 8.55 Processing (US$/tonne ore): Consumables, labour, maintenance & other 3.37 3.41 Sulphuric acid 1.78
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