Bannerman Energy Ltd · ASX:BMN
Bannerman Energy — Bannerman Resources — Investor Presentation (December 2014)
27 slides from Bannerman Energy's investor presentation, Dec 1, 2014
Slide 1: Etango Uranium Project: Enhancing Early Mover Advantage
For personal use only Etango Uranium Project Enhancing Early Mover Advantage 1 December 2014
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: The Opportunity
The Opportunity Very strong outlook for uranium price and uranium investments For personal use only Nuclear growth primarily Asian and Middle East driven with China at the forefront. Progressive restart of Japanese reactor fleet imminent. Emissions reductions back on the global agenda, as ev
Slide 4: Demand – Asian & Middle East Growth Driven
Demand – Asian & Middle East Growth Driven # reactors For personal use only 240 437 reactors operable 220 Proposed in 30 countries, 200 70 under construction, Planned 475 planned and proposed 180 160 Under Construction China on track to increase nuclear 140 Operable Reactors capacity from currently
Slide 5: Looming Deficit in Supply – Demand Balance
Looming Deficit in Supply – Demand Balance For personal use only RJL Global Uranium Supply-Demand Balance 300 290 280 270 260 Falls into deficit in 2020E 250 240 Mlbs/yr U3O8 230 220 210 200 190 180 170 160 150 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E
Slide 6: Uncovered Requirements – utilities typically contract years out
Uncovered Requirements – utilities typically contract 2 – 4 years out For personal use only 200 180 160 140 Uncovered 120 MM lbs U3O8 2016 – 2017 equals 100 70Mlbs 80 60 40 20 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 U.S. Utilities Non-U.S. Utilities Source: Dundee Capital
Slide 7: Uranium Spot & Term Contract Sales Increasing
Uranium Spot & Term Contract Sales Increasing For personal use only 350 Mkt Vol (Mlbs U3O8) 300 Spot Volume LT Volume 250 200 150 100 50 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Raymond James Ltd YTD 7
Slide 8: Uranium Spot Price Bottomed
Uranium Spot Price Bottomed use only $90 UxC Spot Uranium (US$/lb) UxC Long-term Price (US$/lb) $80 $70 $60 For personalUS$/lb $50 $40 $30 $20 Jun-2009 Oct-2009 Feb-2010 Jun-2010 Oct-2010 Feb-2011 Jun-2011 Oct-2011 Feb-2012 Jun-2012 Oct-2012 Feb-2013 Jun-2013 Oct-2013 Feb-2014 Jun-2014 Oct-2014 Sour
Slide 9: Bannerman Highly Leveraged to the Uranium Price
Bannerman Highly Leveraged to the Uranium Price Relative % change in pre-tax NPV against the U3O8 price For personal use only 600% % change in pre-tax NPV 500% 500% 400% 300% 200% 100% 33% 0% 75 80 85 90 95 100 US$ U3O8 / lb Historical Bannerman share price movement v U3O8 spot price Period U3O8 Spo
Slide 10: Etango Project in a Nutshell
Etango Project in a Nutshell For personal use only Completed Etango DFS & ESIA in 2012. Granted environmental approvals in 2012. 6 – 9 Mlbs U3O8 annual production over 16 year mine life, with opportunity to extend. Straightforward geology, mineralogy & metallurgy. Large scale open pit mini
Slide 11: Globally Significant Scale (uranium only projects)
Globally Significant Scale (uranium only projects) For personal use only 400 361 2004 JORC / NI 43-101 Compliant Ore Reserves (Mlbs U3O8) 320 300 217 200 119 119 104 100 88 79 53 34 0 Cameco/Kazatomprom Inkai Etango Bannerman Dornod ARMZ Langer Heinrich Paladin Valencia Forsys Rössing Rio Tinto Ciga
Slide 12: Namibia – A Premier Uranium Mining Jurisdiction
Namibia – A Premier Uranium Mining Jurisdiction For personal use only Ranked 2nd most attractive African Etango investment jurisdiction in Fraser Uranium Institute Mining Company Survey Project Swakopmund Walvis Bay Windhoek Political and social support of uranium mining 5th largest uranium pr
Slide 13: Favourable Location Relative to Infrastructure
Favourable Location Relative to Infrastructure For personal use only 13
Slide 14: Etango Site Layout
Etango Site Layout 16 year mine life, underpinned Robust DFS – Development Ready by 119Mlbs P&P Reserve (194ppm U3O8); significant scope to grow reserve size For personal use only Annual production of 6-9 Mlbs U3O8 Capex of US$870 million, with an additional $US380M in sustainable CAPEX over t
Slide 15: Straightforward Open Pit Mining
Straightforward Open Pit Mining - Ore Reserve Estimate based on over 275km Drilling For personal use only 6km 1km YEAR 16 15
Slide 16: Conventional Sulphuric Acid Heap Leaching
Conventional Sulphuric Acid Heap Leaching For personal use only 50 day on – off cycle 16
Slide 17: Next Step – Heap Leach Demonstration Program
Next Step – Heap Leach Demonstration Program Demonstrate design & projected For personal use only performance reflected in the DFS Maintain & build project knowledge Meaningful in-country activities Pursue optimisation where appropriate 17
Slide 18: Heap Leach Demonstration Plant Layout
Heap Leach Demonstration Plant Layout For personal use only Evaporation Ponds ILS & PLS Crushed Material Agglomerator Cribs Fresh water Reagent mixing area Silent Workshop & generators on-site laboratory 18
Slide 19: Construction due for completion in early 2015
Construction due for completion in early 2015 For personal use only 19
Slide 20: Development Strategy
Development Strategy Position Bannerman to fast track the For personal use only Etango project in a favourable uranium market 1. Further reduce financing risk through conducting heap leach demonstration program. 2. Update the definitive feasibility study taking into consideration the current cost en
Slide 21: Etango – DFS Pre-Production Capital Cost
Etango – DFS Pre-Production Capital Cost For personal use only US$ 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 costs 72 Acc
Slide 22: Etango – DFS Cash Operating Cost
Etango – DFS Cash Operating Cost For personal use only DFS Cash Operating Cost Estimate (April First 5 Life-of- 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 1.79 Power
Slide 23: Corporate Snapshot
Corporate Snapshot as 26 November 2014 For personal use only Share price A$0.079 Shares - currently on issue ~334m Shares - fully diluted (for options, rights, convertible notes, Savanna settlement) ~486m Market capitalisation (undiluted) ~A$26m Top 20 shareholders ~60 % Cash on hand (as at 30 Sept
Slide 24: Share Price v Uranium Spot Price
Share Price v Uranium Spot Price For personal use only A$0.15 $50 BMN Share Price (LHS) U3O8 UxC Spot Price (RHS) $45 A$0.12 Uranium Spot Price $US/lb U3O8 ASX : BMN Share Price ($A) $40 A$0.09 $35 A$0.06 $30 A$0.03 $25 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct
Slide 25: Board of Directors
Board of Ronnie Beevor NE CHAIR • Finance & Accounting Directors • Formerly Head of Investment For personal use only Banking at Rothschild Australia • Experience includes Oxiana, EMED Mining, Wolf Minerals Clive Jones NED Ian Burvill NED • Exploration & Business • Finance & Equity Markets Developmen
Slide 26: Management Team
Management Team For personal use only Len Jubber Werner Ewald • MD & CEO • GM Namibia • Operations, Development & • 22 years with Rio Tinto Executive Management incl 20 years in • Previously MD & CEO Perilya operational and Limited technical roles at Rossing Uranium in • Over 27 years in mining Nami
Slide 27: www.bannermanresources.com
www.bannermanresources.com Scale, Simplicity, Substance For personal use only
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