Bannerman Energy Ltd · ASX:BMN
Bannerman Energy — Global metals and mining investor conference 2020
45 slides from Bannerman Energy's conference presentation, Oct 23, 2020
Slide 1: Bannerman Resources
Watch presentation replay here: http://bit.ly/3nCtVyd Bannerman Resources Global metals and mining investor conference 22 October 2020
Slide 2: Important notices
Important notices Cautionary Statement The Scoping Study referred to in this ASX release has been undertaken for the purpose of initial evaluation of a potential 8Mtpa development of the Etango uranium deposit, owned by Bannerman Resources Limited (Bannerman). It is a preliminary technical and econo
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 Exploration Results and Resources such as “may”, “could”, “will”, “expect”, “believes”, “intend”, “plan”, “es
Slide 4: Bannerman at a glance
Bannerman at a glance SHARE PRICE CHART (ASX:BMN) CAPITAL STRUCTURE A$0.08 $40 BMN Share Price (LHS) ASX share price A$0.035 U3O8 UxC Spot Price (RHS) A$0.07 $35 12 month share price range A$0.015 – A$0.056 Uranium Spot Price ($US/lb U3O8) ASX : BMN Share Price ($A) A$0.06 $30 Shares on issue 1,059
Slide 5: Etango-8 Uranium Project
ETANGO-8 URANIUM PROJECT A world-class uranium asset § Globally large-scale resource endowment § Low technical risk § Excellent supporting infrastructure § Established uranium operating jurisdiction § Strong in-country presence and engagement § High scalability 5
Slide 6: Uranium market overview
URANIUM MARKET overview Strong supply-demand fundamentals Inventory drawdown 2028 WNA Upper + supply disruption 2025 scenario by 2040 6 Source: World Nuclear Association, The Nuclear Fuel Report: Global Scenarios for Demand and Supply Availability 2019-2040
Slide 7: Key scoping outcomes
1 KEY SCOPING OUTCOMES An accelerated project development with strong financial returns 7
Slide 8: Study rationale and team
STUDY RATIONALE AND TEAM A substantial body of existing technical and feasibility work § Etango Project advanced study history ‒ Definitive Feasibility Study 2012 (DFS 2012); 20Mtpa throughput; estimation accuracy of ±15% ‒ DFS Optimisation Study (OS 2015); 20Mtpa throughput; estimation accuracy of
Slide 9: Physical outcomes
PHYSICAL OUTCOMES Highly robust technical parameters Key physical parameters Unit Total / LOM Annual average Operations 14+ years 1.93 : 1 Construction period Initial production life months years 24 14.4 NA NA Initial mine life Strip ratio (waste:ore) Mining Ore mined Mt 114.1 7.9 Strip ratio x 1.93
Slide 10: Financial returns
FINANCIAL RETURNS Key financial outcomes Price inputs Unit Strong projected economics LOM average uranium price US$/lb U3O8 - 65 US$/N$ N$ - 16 Valuation, returns and key ratios Range Mid point NPV8% (post-tax, real basis, ungeared) US$M 201 - 223 212 NPV8% (pre-tax, real basis, ungeared) US$M 354 -
Slide 11: Key upside opportunities
KEY UPSIDE OPPORTUNITIES Substantial value enhancement potential § 1 Future life extension and/or scale-up expansion 2 Processing efficiency and cost upside § Globally large resource of 271Mlbs U3O8 (14.4Mlbs § Testwork at the Etango Heap Leach Demonstration Measured, 150.2Mlbs Indicated and 106.1Ml
Slide 12: Social licence to operate
SOCIAL LICENCE TO OPERATE Strong position due to historical body of work and engagement § Environmental baseline in place since 2008 § High-quality, peer reviewed Environmental and Social Impact Assessment completed in 2009 § Environmental approvals granted in 2010 (Etango Project) and 2012 (Linear
Slide 13: The path forward
THE PATH FORWARD Progression to PFS approved § Etango-8 PFS set to commence with targeted Months to delivery +3 +6 +9 +12 +15 +18 +21 +24 +27 +30 +33 +36 +39 +42 +45 +48 completion by Q2 2021 § No further exploration drilling planned given ~150Mlb PFS U3O8 already in M&I resource classification DFS
Slide 14: A world-class uranium asset
A WORLD-CLASS URANIUM ASSET Globally significant output of Environmental approvals Robust economics and low 3.5 Mlbs pa with further with strong community and hurdles to development expansion scalability government support Namibia a premier uranium Low technical risk through Streamlined development
Slide 15: Questions
ea eT PE Ss A Rea:
Slide 16: Mining and processing
2 MINING AND PROCESSING Low-strip mining with a heavily de-risked process route 16
Slide 17: Geology
GEOLOGY Simple alaskite hosted uranium 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 18: Mineral resource
MINERAL RESOURCE A world-class uranium resource § Drillhole database of 939 holes (105 diamond and 834 RC) for 239,032 m § Etango Mineral Resource update completed in 2015 (IRS and Optiro) § Parent blocks of 25 x 25 x 8m, sub-celled to 6.25 x 12.5 x 4m (the SMU) § Uniform Conditioning (UC) applied t
Slide 19: Pit parameters and mine design
PIT PARAMETERS AND MINE DESIGN Conventional mining operation § Conventional truck and shovel open pit operation § Contract mining; expected fleet requirement of 20 – 24 haul trucks (100t) and 4 – 5 excavators (200t) § Radiometric truck scanning employed as the definitive grade control process, as is
Slide 20: Mine schedule
MINE SCHEDULE Low average LOM strip ratio of 1.9x § Total ore mined of 114.1Mt at 232 ppm U3O8 Material Movement Schedule 30.0 6.0 § Approx. 14 year initial life of mining operations 25.0 5.0 § Average strip ratio of 1.93 Strip Ratio (w:o tonnes) Tonnes (Mt) 20.0 4.0 § Still delivers real optionalit
Slide 21: Metallurgy and process inputs
METALLURGY AND PROCESS INPUTS Heavily studied metallurgical parameters § DFS-standard met testwork programs previously conducted at Key process design parameters both ALS Ammtech and Bureau Veritas Heap leach crush size P80 5.3 mm § Comminution, heap leach column and cribs, acid usage, SX, Ion Leach
Slide 22: Process flowsheet and plant design
PROCESS FLOWSHEET AND PLANT DESIGN A highly de-risked process route § Gyratory primary crusher, two secondary cone crushers and two tertiary HPGR (high pressure grinding roll) units § Water, sulphuric acid and binder agent are then added, and the agglomerated ore is transferred to the heap leach sta
Slide 23: Production schedule
PRODUCTION SCHEDULE Forecast average annual production of over 3.5 Mlbs § Strategic ROM ore stockpile used to manage Uranium Production and Plant Head Grade tonnage and grade of ore feed to the plant 6,000,000 350 § Initial plant ramp-up period of 12 months to attain 5,000,000 300 Uranium Production
Slide 24: Infrastructure and logistics
3 INFRASTRUCTURE AND LOGISTICS A premium location 24
Slide 25: Site layout
SITE LAYOUT In-line with previously optimised configuration § Plant location same as in the OS 2015 § Waste rock dumps sited adjacent to the open pit and as far as possible to the south of the Swakop river catchment § Primary crusher located adjacent to the open pit and is linked to the process plan
Slide 26: Power and water
POWER AND WATER Readily available power and water solutions Power § Power to be provided by Nampower, the national power utility company § Significant upgrades of Nampower’s generation and distribution capacity have taken place since 2015 § Planned 29 km, 132 kV transmission line from the Kuiseb sub
Slide 27: Product transport and port logistics
PRODUCT TRANSPORT AND PORT LOGISTICS Established, safe and efficient uranium export infrastructure § C28 road from Swakopmund passes ~10km to the south of Etango; planned construction of a spur road to site, parallel to the power line and water pipeline services route § D1984 is currently being upgr
Slide 28: Social licence to operate
4 SOCIAL LICENCE TO OPERATE Strong community engagement and support 28
Slide 29: Environment and community
ENVIRONMENT AND COMMUNITY Established and deep in-country presence and engagement § Environmental and Social Impact Assessment (ESIA), reflecting the DFS 2012, renewed and currently valid until October 2021 § Environmental Clearance for linear infrastructure renewed and currently valid until June 20
Slide 30: Tenure and permitting
TENURE AND PERMITTING Well delineated and understood tenure and approvals processes § Bannerman currently holds a Mineral Deposit Retention Licence (MDRL) over the Etango Project area (7,295 ha) § MDRL 3345 provides strong and exclusive rights to tenure and the right (without obligation) to continue
Slide 31: Capital and operating costs
5 CAPITAL AND OPERATING COSTS A substantially reduced pre-production capital hurdle 31
Slide 32: Capital cost
CAPITAL COST Highly attractive pre-production capital intensity of approx. US$71/lb pa capacity § Forecast pre-production capex of US$254M Description US$'000 % Direct Processing Plant capital 131,875 52% § Estimated at ±30% accuracy level External & Internal Infrastructure 34,023 13% § Delivers a g
Slide 33: Operating cost
OPERATING COST Description LOM US$M US$/t ore US$/lb % Robust construction of forecast opex Mining - Contractor 829 7.3 16.2 43% Maintenance & consumables 190 1.7 3.7 10% Power 172 1.5 3.4 9% Sulphuric acid 168 1.5 3.3 9% § Projected LOM operating cost (ex royalties/levies) of Reagents (not includin
Slide 34: Financial forecasts
6 FINANCIAL FORECASTS Strong project economics 34
Slide 35: Uranium price and market outlook
URANIUM PRICE AND MARKET OUTLOOK Key industry perspectives § Most market commentators expect uranium long term contract prices to substantially and sustainably increase to their assumed long-run price forecast or beyond in the next 24-48 months § LOM uranium price input of US$65/lb (US$75/lb in OS 2
Slide 36: Key financial metrics
KEY FINANCIAL METRICS Robust economic parameters Key financial outcomes Unit Price inputs LOM average uranium price US$/lb U3O8 - 65 § Discounted cashflow model US$/N$ N$ - 16 Valuation, returns and key ratios Range Mid point § Contract mining with plant and other items owner-operated NPV8% (post-ta
Slide 37: Life-of-mine cashflow profile
LIFE-OF-MINE CASHFLOW PROFILE Heightened cash generation in first four years § Forecast pre-production capital intensity of approx. US$M Annual Free Cash Flows and Cumulative Project Free Cash Flow (US$M) US$71 per pound of average annual U3O8 production 700,000 capacity 600,000 Annual Project Free
Slide 38: Valuation and return sensitivities
VALUATION AND RETURN SENSITIVITIES Strong leverage to potential uranium price increases 8Mtpa Etango sensitivities - NPV US$'000 8Mtpa Etango sensitivities - IRR % U3O8 Price US$/lb Mining Cost US$/t Uranium Price US$/lb Mining Cost US$/t Processing Cost US$/t Acid Price US$/t Processing Cost US$/t
Slide 39: Key opportunities
KEY OPPORTUNITIES Strong real option on future expansion § 1 Future life extension and/or scale-up expansion § Globally large-scale resource of 271Mlbs U3O8 (14.4Mlbs Measured, 150.2Mlbs Indicated and 106.1Mlbs Inferred) § 8Mtpa development retains the flexibility to expand to larger throughput (up
Slide 40: Key risks
KEY RISKS Solid understanding and mitigation strategies given depth of previous study work Risks addressed in the Etango-8 Scoping Study § U3O8 price § Exchange rate exposure § Operating cost estimates § Capital cost inflation § Geological interpretation and resource § Utility supply § Labour and tr
Slide 41: Summary
7 SUMMARY A world-class uranium asset 41
Slide 42: A world-class uranium asset
A WORLD-CLASS URANIUM ASSET Globally significant output of Environmental approvals Robust economics and low 3.5 Mlbs pa with further with strong community and hurdles to development expansion scalability government support Namibia a premier uranium Low technical risk through Streamlined development
Slide 43: Contact
CONTACT Brandon Munro Chief Executive Officer E: info@bannermanresources.com.au T: +61 8 9381 1436 @BannermanRes @Brandon_Munro
Slide 44: Appendices
A APPENDICES 44
Slide 45: 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 § 30+ years’ investment banking experience incl. head of corporate lawyer and resources executive. Ronnie Beevor Brandon Munro Rothschild Austral
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