Bannerman Energy Ltd · ASX:BMN
Bannerman Energy — Bannerman Resources — Africa Down Under Conference 2012
27 slides from Bannerman Energy's conference presentation, Aug 29, 2012
Slide 1: Africa Down Under Conference
For personal use only Africa Down Under Conference Perth, Western Australia, 29 August 2012
Slide 2: 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 3: Contents
Contents For personal use only 1. Uranium Market 2. Why Namibia ? 3. Etango Uranium Project 4. Summary Resource definition (core) drilling at the Etango site. 3
Slide 4: Demand - Strong New Reactor Build Outlook
1. Uranium Market Demand - Strong New Reactor Build Outlook For personal use only # reactors 220 433 reactors operating 200 Proposed in 30 countries, 180 Planned 63 under construction, 160 Under Construction 489 planned and proposed. 140 Operating Reactors China has stated its intention to 120 incre
Slide 5: Increasing Activity
1. Uranium Market Increasing Activity For personal use only Demand • Re-start of first two Japanese reactors – more re-starts expected. • China – in principle approval of new nuclear reactor safety plan. • UAE US$3 billion contract covering 15 years of fuel supply for first nuclear plant. • Paladin
Slide 6: Supply - Development Incentive Pricing
1. Uranium Market Supply - Development Incentive Pricing Feasibility Study Cost Creep For personal use only *Based on 16 uranium projects analysed by Bannerman 6
Slide 7: Upward Uranium Price Trend
1. Uranium Market Upward Uranium Price Trend For personal use only Price source: Ux Consulting. 7 Etango RC drilling
Slide 8: Why Namibia? Premier uranium mining jurisdiction
2. Why Namibia ? Namibia Premier uranium mining jurisdiction For personal use only Stable democratic government. Etango Uranium Political and social support of Project Swakopmund Windhoek uranium mining. Walvis Bay 5th largest uranium producing country – ambitions to grow. 35 years of uraniu
Slide 9: Erongo Uranium Province
1. Investment 2. Why Namibia Rationale ? Erongo Uranium Province Extensive uranium inventory and nearby infrastructure For personal use only CGNPC 9
Slide 10: Erongo Region
2. Why Namibia ? Erongo Region Emerging industrial & trade hub For personal use only 10
Slide 11: Namibian Uranium Regulatory Framework
2. Why Namibia ? Namibian Uranium Regulatory Framework For personal use only Source: Namibian Chamber of Mines Uranium Institute 11
Slide 12: Uranium Stewardship
2. Why Namibia ? Uranium Stewardship For personal use only Occupational Medical Information Training Facility 12
Slide 13: Etango Definitive Feasibility Study
3. 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. 13
Slide 14: Etango Site Layout
3. 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. Opex 1st five years US$41/lb U3O8. Licence boundary 33% operating margin for fir
Slide 15: Simple Open Pit Mining
3. Etango Uranium Project Simple Open Pit Mining For personal use only 6km 1km YEAR 16 15
Slide 16: Conventional Sulphuric Acid Heap Leaching
3. Etango Uranium Project Conventional Sulphuric Acid Heap Leaching For personal use only 50 day on–off cycle 16
Slide 17: Resource Utilisation Upside
3. Etango Uranium Project Resource Utilisation Upside For personal use only Hyena Deposit (Inferred resource) Ondjamba Deposit (Inferred resource) Etango Deposit Resource zones outside pit design Open at depth 1km Total U3O8 Mineral Resource comprises 149Mlbs M&I and 64Mlbs Inferred 17
Slide 18: Resource Expansion Upside
3. 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 19: Global Top 10 Uranium Project Reserves
For personal use only 19 0 50 100 150 200 250 300 350 McCarthur 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 Global Top 10
Slide 20: Highly leveraged to the uranium price
4. Summary Highly leveraged to the uranium price use only Relative % change in pre-tax NPV against the U3O8 price 600% Bannerman’s % change in pre-tax NPV 500% 500% enterprise value per 400% attributable U3O8 300% resource pound is US$0.21 200% For personal 100% 33% 0% 75 80 85 90 95 100 Cameco acqu
Slide 21: Well positioned in a premier location
4. Summary Well positioned in a premier location For personal use only 1. Bannerman has: a completed DFS on the Etango Project; the necessary environmental clearances; a mining licence application pending with the Namibian Ministry of Mines & Energy; access to established infrastructure; and
Slide 22: Scale, Simplicity, Substance
www.bannermanresources.com Scale, Simplicity, Substance For personal use only
Slide 23: Corporate Snapshot
APPENDIX Corporate Snapshot As at August 28, 2012 For personal use only Share price A$0.11 Shares - currently on issue 302M Shares - fully diluted (for options, rights, existing convertible note & contingent issues) 355 M Market capitalisation (undiluted) A$33M / US$34M ~700,000 Average daily traded
Slide 24: Etango Project Mineral Resource and Ore Reserve Estimates
APPENDIX Etango Project Mineral Resource and Ore Reserve Estimates For personal use only Mineral Resource Tonnes Grade Contained U3O8 (Mt) (ppm U3O8) (Mlbs) Measured 62.7 205 28.3 Indicated 273.5 200 120.4 Measured & Indicated Resource 336.2 201 148.8 Inferred (Etango) 45.7 202 20.3 Inferred (Ondjam
Slide 25: Conventional Process Flowsheet
APPENDIX Conventional Process Flowsheet For personal use only 25
Slide 26: Etango – DFS Pre-Production Capital Costs
APPENDIX Etango – DFS Pre-Production Capital Costs For personal use only US$ 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 27: 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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