Slide 1: Etango-8 Definitive Feasibility Study
Etango-8 Definitive Feasibility Study December 2022
Slide 2: Important notices
Important notices Cautionary Statement Of the Mineral Resources scheduled for extraction and recovery in the Etango-8 Defined Feasibility Study production plan, 100% are classified as Measured or Indicated. Bannerman Energy Ltd (Bannerman, the Company) confirms that there are no Inferred Resources i
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 words Mineral Resources 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 November 2022) A$1.81 A$3.50 12 month share price range A$1.50 – A$3.30 A$3.00 Shares on issue 149.6 million A$2.50 Market capitalisation A$271M A$2.00 Options and performance rights 47 million A$1.50 Average dai
Slide 5: The Etango journey
HISTORICAL TESTWORK AND STUDY PROVIDES STRONG DE-RISKING The Etango journey Etango-8 development Leadership change (3.5 Mlbs pa) NI 43-101 report Etango-8 Scoping Study Etango heap leach BMN listed on ASX de-risking complete You are here Etango Pre-Feasibility Study Demonstration EPL3345 project acq
Slide 6: Etango-8 Uranium Project
A WORLD-CLASS URANIUM ASSET Etango-8 Uranium Project ▪ Globally large-scale resource endowment ▪ 3.5Mlbs per annum production with scalability ▪ Conventional production with low technical risk ▪ Excellent supporting infrastructure ▪ Established uranium operating jurisdiction ▪ Strong in-country pres
Slide 7: Globally significant impact
EVERY YEAR ETANGO-8 WILL DELIVER Globally significant impact 64 million 25 million 760 Namibian 3.5 Mlbs U3O8 tonnes tonnes jobs Enough uranium to Carbon emissions power 7-8 large nuclear The equivalent amount avoided from nuclear 760 well paid direct jobs reactors. of coal that our power using our
Slide 8: Moving towards development
NEXT STEPS Moving towards development ✓ Mining Licence (ML 250) application submitted – August 2022 ✓ DFS completed – December 2022 ✓ Initial Front-End Engineering and Design (FEED) work underway with full-scope FEED now approved – December 2022 • Project financing and offtake workstreams progressin
Slide 9: Key DFS outcomes
Key DFS outcomes An accelerated project development with strong financial returns 9
Slide 10: Study rationale and team
A SUBSTANTIAL BODY OF EXISTING TECHNICAL AND FEASIBILITY WORK Study rationale and team • Etango Project advanced study history Contributor Discipline – Definitive Feasibility Study 2012 (DFS 2012); Process plant design and related 20Mtpa throughput; estimation accuracy of ±15%1 Wood plc (Study Lead)
Slide 11: Low technical risk
PROVEN FLOW-SHEET DE-RISKED OVER SEVERAL YEARS Low technical risk Etango-8 Flow Sheet (DFS) 11
Slide 12: Ideal uranium development and operating context
NAMIBIA: A TIER 1 URANIUM JURISDICTION Ideal uranium development and operating context Ideal jurisdiction for uranium development • Highly established nuclear regulatory regime with 45-year uranium production and export history • Top 3 global uranium producer (2020) with three large-scale mines: Ros
Slide 13: Key DFS conclusions
Key DFS conclusions • DFS 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, metallurgical and environmental work • Heap le
Slide 14: Base Etango-8 DFS outcomes
HIGHLY ROBUST PHYSICAL PARAMETERS AND STRONG PROJECTED ECONOMICS Base Etango-8 DFS outcomes1 15 years 2.22 : 1 US$65/lb US$209M Initial mine life Strip ratio (waste:ore) LOM U3O8 price Post-tax NPV8% 8 Mtpa 87.8% US$35/lb 4.1 years Throughput capacity Processing yield Cash opex excl royalties Paybac
Slide 15: Upside DFS price case (US$80/lb)
SIGNIFICANT LEVERAGE TO URANIUM PRICE Upside DFS price case (US$80/lb) Net cashflow (post-tax) NPV8% (post-tax, real basis, ungeared) Base case Upside case Base case Upside case US$695M US$1,172M US$209M US$435M Selling price assumption +69% +108% Base case Upside case US$65/lb US$80/lb IRR (post-ta
Slide 16: Strong continuity with PFS outcomes
HIGHER ACCURACY ESTIMATES Strong continuity with PFS outcomes ETANGO-8 PROJECT DFS – Base PFS Change Scoping Study Unit (100% basis) (Dec 2022) (Aug 2021) (DFS – PFS) (Aug 2020) Total ore throughput Mt 113.5 117.6 - 4% 114.1 Nameplate annual process throughput Mtpa 8.0 8.0 - 8.0 Initial life-of-mine
Slide 17: Key upside opportunity
SUBSTANTIAL VALUE ENHANCEMENT POTENTIAL Key upside opportunity Further upside potential from future life extension and/or scale-up expansion • Long-term scalability of Etango Project (up to 20Mtpa) confirmed by previous definitive level studies; provides strong optionality and leverage to uranium pr
Slide 18: Mining and processing
Mining and processing Low-strip mining with a heavily de-risked process route 18
Slide 19: 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 20: World-class uranium inventory
ETANGO-8 RESOURCES AND RESERVES1 World-class uranium inventory 1. For full details of the Mineral Resources and Ore Reserve estimate and disclosures, please refer to ASX release dated 6 December 2022, “Etango-8 Definitive-Feasibility Study”. The Mineral Resources Satellite underpinning the Ore Reser
Slide 21: 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 Namibia • Fresh rock mass co
Slide 22: Mine schedule
Mine schedule • Total ore mined of 113.5Mt at 240 ppm for 59.9 Mlbs U3O8 • Approx. 15-year initial life of mining operations • Average strip ratio of 2.22 • Updated maiden Etango-8 Ore Reserve estimate • Still delivers real optionality for potential future phases of expansion, including up to 20Mtpa
Slide 23: Metallurgy and process inputs
Metallurgy and process inputs • DFS-standard met testwork programs previously conducted at both ALS Ammtech and Bureau Veritas • Comminution, heap leach column and cribs, acid usage, Key process design parameters SX, Ion Exchange (IX) and Nano-Filtration (NF) testwork all conducted Leach duration 32
Slide 24: Production schedule
Production schedule ▪ Strategic ROM ore stockpile used to manage tonnage and grade of ore feed to the plant ▪ Utilises an overall uranium recovery of 87.8% (unchanged from the PFS); based on the extensive testwork and appropriate scale-up factors to simulate performance on a commercial heap. ▪ Forec
Slide 25: Infrastructure and logistics
Infrastructure and logistics Key asset profile 25
Slide 26: Site layout
IN LINE WITH PREVIOUSLY OPTIMISED CONFIGURATION Site layout • Plant location same as in DFS 2012, OS 2015, and Etango-8 Scoping Study and PFS. • Selected location driven largely by imperative to restrict waste and ore haulage distances. • Waste rock dumps sited adjacent to the open pit • Primary cru
Slide 27: Power and water supply
READILY-AVAILABLE POWER AND WATER SOLUTIONS Power and water supply Power • Power to be provided by Nampower, the national power utility company and an existing independent solar power producer (approximately 30% renewables penetration) • Planned 29 km, 132 kV transmission line from the Kuiseb substa
Slide 28: Product transport and export logistics
ESTABLISHED, SAFE AND EFFICIENT URANIUM EXPORT INFRASTRUCTURE Product transport and export logistics ▪ C28 road from Swakopmund passes approx. 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 sulphuri
Slide 29: Social licence to operate
Social licence to operate Dedicated community engagement and support 29
Slide 30: Strong ESG credentials built over years
Strong ESG credentials built over 15 years Erongo Early SRT Conservancy Learner Environmental baseline Development Foundation Assistance Tourism Education monitoring since 2008 Program Hospitality TOSCO Association of Namibia Trade scholarships CTAN (NIMT) Rehabilitation Core environmental of Namib
Slide 31: Established tenure and environmental permitting
PATHWAY CLEAR OF TYPICAL URANIUM ROADBLOCKS Established tenure and environmental permitting Mining Licence Environmental application lodged in Clearance Certificate August 2022 awarded for Etango mine Environmental Community, political Clearance Certificate and government awarded for power lines, su
Slide 32: Capital and operating costs
Capital and operating costs Higher-accuracy estimates 32
Slide 33: Capital costs
HIGHLY ATTRACTIVE PRE-PRODUCTION CAPITAL INTENSITY Capital costs Pre-production capital expenditure US$M Mining 12.7 Contractor mobilisation 4.9 • Total forecast pre-production capital expenditure Owner’s team equipment and labour 0.8 Pre-strip 5.4 for the Etango-8 DFS is US$317.5M (to a ±15% Contin
Slide 34: Operating costs
ROBUST CONSTRUCTION OF FORECAST OPERATING EXPENDITURE Operating costs • Projected LOM opex (excl. royalties/levies) of US$35.01/lb LOM US$/t Operating cost segment US$/lb % (PFS: US$37.4/lb) US$M ore Mining (contract) 857 7.55 16.29 47% • Including all royalties/levies, total cash opex is US$37.12 P
Slide 35: Financial forecasts
Financial forecasts Strong projected economics 35
Slide 36: LOM uranium price estimate of US$65/lb
URANIUM MARKET LOM uranium price estimate of US$65/lb • Realised LOM uranium forecast price (US$65/lb) is the same price estimate utilised for the PFS and Scoping Study • Upside scenario LOM price forecast of US$80/lb • Highly favourable sector dynamics − Firm existing baseline demand – nuclear powe
Slide 37: Key financial metrics
DFS – Key financial outcomes Unit DFS – base PFS upside ROBUST ECONOMIC PARAMETERS Price inputs Key financial metrics LOM average uranium price US$/lb U3O8 65 80 65 US$/N$ N$ 17.56 17.56 16 Valuation, returns and key ratios NPV8% (post-tax, real basis, ungeared) US$M 209 435 222 NPV8% (pre-tax, real
Slide 38: Life-of-mine cashflow profile
HEIGHTENED CASH GENERATION IN FIRST FOUR YEARS Life-of-mine cashflow profile • LOM post-tax net project cashflow of US$695M (base US$65/lb) and US$1,172M (upside US$80/lb) • Compared with PFS estimates − Lower life-of-mine All-In-Sustaining-Cost (AISC) (-5%) − Balanced against a bolstered pre-produc
Slide 39: Valuation and return sensitivities
SIGNIFICANT LEVERAGE TO POTENTIAL URANIUM PRICE INCREASES Valuation and return sensitivities 39
Slide 40: Key overall project risks
SOLID UNDERSTANDING AND MITIGATION STRATEGIES Key overall project risks • Uranium prices: Lower than assumed prices of U3O8 • Key input prices: Higher than expected prices of sulphuric acid, diesel, electricity or water • Capital cost: Unpredicted increases in equipment, materials or labour capital
Slide 41: Full power ahead
KEY ETANGO-8 MILESTONES PIPELINE Full power ahead ✓ Mining Licence (ML 250) application submitted – August 2022 ✓ DFS completed – December 2022 ✓ Initial Front-End Engineering and Design (FEED) work underway with full-scope FEED now approved – December 2022 • Project financing and offtake workstream
Slide 42: A world-class uranium asset
ETANGO-8 A world-class uranium asset Globally significant output Robust economics and Environmental approvals of 3.5 Mlbs pa with further low hurdles to with strong community expansion scalability development and government support Namibia a premier Streamlined development Low technical risk through
Slide 43: Contact
CONTACT Brandon Munro Chief Executive Officer E: info@bmnenergy.com T: +61 8 9381 1436 @BannermanEnergy @Brandon_Munro Image courtesy Oklo Inc 43
Slide 44: 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 of Ronnie Beevor Brandon Munro corporate lawyer and resources executive. Rothschild Austra