Bannerman Energy Ltd · ASX:BMN
Bannerman Energy — Investor Presentation (April 2020)
32 slides from Bannerman Energy's investor presentation, Apr 17, 2020
Slide 1: Uranium: 2020 Vision
Uranium: 2020 Vision Brandon Munro, CEO April 2020
Slide 2: Important notices
Important notices 2 Technical disclosures and forward looking disclaimers Certain disclosures in this report, including management's assessment of Bannerman’s plans and projects, constitute forward looking statements that are subject to numerous risks, uncertainties and other factors relating to Ban
Slide 3: Bannerman at a glance
Bannerman at a glance (ASX:BMN OTCQB:BNNLF) 3 Capital structure Etango uranium project, Namibia (271Mlbs* U3O8 resource). ASX share price A$0.045 Sector leading valuation leverage to uranium price increases. 12 month share price range A$0.015 – A$0.056 Shares on issue 1,059 million Largest advanced,
Slide 4: Why uranium?
Why uranium? 4 Nuclear reactor exports key to China, US, France determined to Russian energy and foreign policy remain relevant in nuclear energy technology and export industry Geopolitical Chinese nuclear build-out to create factors Structural supply deficit of ~20Mlbs per annum (11% unprecedented
Slide 5: Nuclear power on solid demand growth trajectory
Nuclear power on solid demand growth trajectory 5 Climate policy and RE limitations World Nuclear Association demand projections: first increase since 2011 promote nuclear as clean and reliable • Support for nuclear power from IEA, IPCC, WEO, UNECE, etc WNA Nuclear generating capacity scenarios to 2
Slide 6: Supply: Deficits, disruption and depletion
Supply: Deficits, disruption and depletion 6 2019 global uranium consumption versus supply (Mlbs U3O8) 200 180 Structural deficit of ~20 Mlbs U3O8 Secondary 2019 global reactor consumption 160 supply per annum (11% consumption) 140 Primary mine supply Utilities have been underbuying 120 (ie drawing
Slide 7: Supply: Deficits, disruption and depletion
Supply: Deficits, disruption and depletion 7 2020e global uranium consumption versus supply (Mlbs U3O8) COVID-19 disruption could remove 20Mlbs from0.72020 global production 200 3.6 Kazakhstan 180 Secondary 0.8 Canada Australia 2019 global reactor consumption 160 supply 10.4 Namibia 4.5 140 Primary
Slide 8: Supply: Deficits, disruption and depletion
Supply: Deficits, disruption and depletion 8 Four of top 10 mines to close by 2030 WNA Reference scenario uranium supply and demand (tU) • Ranger (Australia) • SOMAIR (Niger) • Rossing (Namibia) • Cigar Lake (Canada) Kazakh ISR mines production depletion Numerous smaller mines run out of reserves In
Slide 9: Geopolitics and energy security
Geopolitics and energy security 9 The ideal The reality Uranium Uranium Kazakhstan Canada Australia Namibia Niger required produced United States France China Russia South Korea Energy secure nuclear power Top five uranium producers and consumers (2018) Source: World Nuclear Association Nuclear Fuel
Slide 10: Namibian uranium production appeals to all demand markets
Global production is geopolitically concentrated 10 US political influence Russian political influence Three geopolitical blocks exert French political influence strong influence over most global Politically neutral uranium production 1. United States 2. Russia 3. France China and India need to secu
Slide 11: China's approach to nuclear energy security
China’s approach to nuclear energy security 11 Strategic stockpiles As market tightens China In cur cr ity se ea will focus on controlled sin ge future production ne rg y Controlled production Domestic Chinese production lacks Offtake + % influence expansion capacity Market purchases Where can China
Slide 12: China's ability to control assets in top uranium regions
China’s ability to control assets in top 5 uranium regions 12 Canada (>49% ownership prohibited) Kazakhstan (only JV with Kazatomprom) Niger Australia (FIRB unlikely to approve) China’s options to control meaningful scale 1. Namibia 2. Niger 3. Newcomer Namibia
Slide 13: COVID-19 disruption signals start of next bull market
COVID-19 disruption signals start of next bull market 13 Uranium spot price hits highest level in 4 years Source: Barchart.com
Slide 14: How to get set for a uranium bull market, during a macro crisis
How to get set for a uranium bull market, during a macro crisis 14 Track record in sector Advanced asset Leveraged to price Low non-financial risks Strategic appeal Leadership can deliver Characteristics of the best performers in early bull markets.
Slide 15: Bannerman is the ideal uranium bull market exposure
Bannerman is the ideal uranium bull market exposure 15
Slide 16: Track record in sector
Track record in sector Bannerman has a long track record in uranium 16
Slide 17: Uranium (only) since 2006
Bannerman has a long track record in uranium 17 Uranium (only) since 2006 Operating in Namibia since 2006 Deep sector experience History of institutional support Nuclear industry profile Established credibility and leverage
Slide 18: Leveraged to price
Leveraged to price Bannerman offers sector leading valuation leverage to a uranium price correction 18
Slide 19: Sector leading valuation leverage
Sector leading valuation leverage 19 NPV sensitivity curve 500% to uranium price Term Price % of base Etango post-tax NPV8 (base = 100%) Jun 2007 – Apr 2008 (2015 Optimisation Study announced to ASX on 15 November 2015. Bannerman is not aware of any new information or 400% data that materially affec
Slide 20: Strategic appeal
Strategic appeal Etango is the largest un-aligned uranium project with a DFS 20
Slide 21: Strategic appeal
Strategic appeal 21 Ideal jurisdiction (Namibia) Un-aligned (largest globally with DFS) Advanced project (DFS+pilot) Credibility (Uranium expertise) Large scale (fuels ~17 reactors) Low technical risk (producible pounds)
Slide 22: Advanced asset
Advanced asset Etango is the most advanced uranium asset not in construction 22
Slide 23: A shovel ready project
A shovel ready project 23 EARLY STAGE OR CONCEPTUAL STUDY ADVANCED FEASIBILITY WORK DEVELOPMENT Etango is scheduled to be in full production within 3 years of final investment decision 2007 2007 2009 2012 2012 2014-2017 2015-2020 Maiden Scoping study/PEA PFS equivalent JORC/43-101 DFS Environmental
Slide 24: Low non-financial risks
Low non-financial risks Etango has low technical risk in the world’s premier uranium jurisdiction 24
Slide 25: Bannerman has low technical risk…
Bannerman has low technical risk… 25 Etango is a low technical risk project BMN market cap has substantial value backing ü Permitted with Retention Licence ü ~360,000m of drilling ü Environmental/social approvals in place ü Huge volume of technical work, (including DFS) ü Simple, bulk tonnage operat
Slide 26: …in the world's premier uranium jurisdiction
…in the world’s premier uranium jurisdiction 26 Namibia is the premier uranium jurisdiction ü +40 year production history ü Top 4 global uranium player ü Politically/socially supportive (CNNC) ü Excellent infrastructure: port/road/rail/water/power First class operating jurisdiction ü Stable and secu
Slide 27: Leadership can deliver
Leadership can deliver Bannerman has the team to deliver value to shareholders 27
Slide 28: Bannerman has the team to deliver value to shareholders
Bannerman has the team to deliver value to shareholders 28 Ronnie Beevor Brandon Munro Mike Leech Chairman CEO Chairman (Namibia) Ø 35 years investment banking Ø 20 years mergers and experience acquisitions/resources Ø 30 years Namibian uranium Ø Former head of Rothschild experience operating experi
Slide 29: Summary: Bannerman offers superior prospects throughout uranium bull market
Summary: Bannerman offers superior prospects throughout uranium bull market 29 Sector-leading Etango is largest Bannerman has valuation unaligned long track record leveraged to uranium project in uranium uranium price with a DFS Etango is world’s Low technical risk The team to most advanced in premi
Slide 30: Appendix A: Bannerman team
Appendix A: Bannerman team 30 Strong and experienced board Skilled management with Namibian expertise 30+ years investment banking experience incl. head of 20+ years transactional and financing experience as a Ronnie Beevor Rothschild Australia. Brandon Munro corporate lawyer and resources executive
Slide 31: Appendix B: Etango Project – resources and reserves
Appendix B: Etango Project – resources and reserves 31 Etango Project – Mineral Resource Estimate Mineral Resource Note 1: Refer to the Competent Persons Statement at the start of this document for Measured Indicated Inferred further information on the Etango Mineral Resource Estimate. The Etango es
Slide 32: Appendix C: Robust development economics
Appendix C: Robust development economics 32 DFS Opt Study* Key project parameters To be improved in DFS Update World class scale (November 2015) Production (U3O8 LOM avg) 7.2 Mlb pa Processing Optimisation Study completed 2017 Total resource size of 271 Mlbs* U3O8, including ü US$73M estimated capit
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