Bannerman Energy Ltd · ASX:BMN
Bannerman Energy — Investor Presentation (November 2015)
29 slides from Bannerman Energy's investor presentation, Nov 11, 2015
Slide 1: The enhanced Etango
For personal use only The enhanced Etango An advanced, world class uranium project 11 November 2015
Slide 2: Technical disclosures and forward looking disclaimers
Technical disclosures and forward looking disclaimers Certain disclosures in this release, 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 Bannerman’s operation
Slide 3: The newly optimised Etango is a rare beast
The newly optimised Etango is a rare beast For personal use only Etango is a rarity: a development-ready Strongly enhanced investment uranium project with world class scale proposition and simplicity DFS Optimisation Study – sharply improved project Completed DFS, environmental permit granted an
Slide 4: Key Etango and corporate milestones
Key Etango and corporate milestones For personal use only Flagship Etango uranium project in Namibia acquired in 2005 (80% interest) – Over US$60M invested to date in drilling and advanced feasibility/demonstration work – Confirms Etango as a simple, large-scale, long life development project of g
Slide 5: Bannerman corporate snapshot
Bannerman corporate snapshot For personal use only Capital structure* Share register* ASX / TSX / NSX ticker BMN / BAN / BMN ASX share price (9 November 2015) A$0.041 12 month share price range A$0.030 - 0.082 Pro forma shares on issue 710.3 million Pro forma market capitalisation A$29M Options and
Slide 6: Chinese fuelled uranium demand
Chinese fuelled uranium demand World electricity consumption For personal use only TWh 35,000 Shifting dynamics of uranium demand are clear OECD Non-OECD 30,000 – Current nuclear reactor fleet is dominated by OECD 25,000 capacity (>80%) – However, 75% of capacity under construction today is 20,000
Slide 7: Uranium supply is at the crossroads
Uranium supply is at the crossroads Kazakh production underperformance For personal use only M lbs U3 O8 UxC foreca st Current U mine supply base will not support 90 Kazatomprom forecast (2010) 80 future demand from operating and under Actual production 70 construction reactors 60 Prevailing ter
Slide 8: Current uranium marketing trends
Current uranium marketing trends Uranium volumes contracted For personal use only Mlbs U3 O8 Constant US$/lb U3 O8 300 120 Long-term Current low levels of long term contracting are a Spot 250 100 function of a market presently in surplus Spot price* 200 80 – Japanese shutdowns – Strong growth in K
Slide 9: Etango is a Tier 1 uranium asset
Etango is a Tier 1 uranium asset For personal use only Key project parameters DFS Opt Study (November 2015) DFS (April 2012) World class scale M&I Resources (U3O8) 395Mt at 189ppm 336Mt at 201ppm – M&I Resource of 165mlb U3O8 Mineral Reserves (U3O8) 303Mt at 195ppm 280Mt at 194ppm – Production of
Slide 10: World class scale and advanced progression
World class scale and advanced progression EARLY STAGE OR For personal use only CONCEPTUAL STUDY OMAHOLA (ASX: DYL) DETAILED FEASIBILITY WORK COMPLETE LETLHAKANE (ASX: ACB) SALAMANCA MULGA (ASX: BKY) ROCK (ASX: VMY) YELEERIE (TSX: CCO) NORASA ETANGO (TSX: FSY) (ASX: BMN) WILUNA (ASX: KINTYRE TOE) (T
Slide 11: Economic integrity only comes with the detail
Economic integrity only comes with the detail For personal use only Few uranium development projects currently have a completed Definitive Feasibility Study (DFS) – Etango does History of uranium project assessment is one of significant cost estimate escalation with progression through more deta
Slide 12: Namibia is a first class mining jurisdiction
Namibia is a first class mining jurisdiction For personal use only Namibia is a well regarded mining jurisdiction; particularly for uranium (5th largest producer) – Ranked most attractive African investment jurisdiction in Fraser Institute Mining Company Survey Effective uranium permitting and r
Slide 13: Etango geology
Etango geology For personal use only Simple geometry 6km strike length and up to 1km wide; extends to a known depth of approx 400m – Outcrops at surface in the north, small cover (5-20m) in the south – Dips at 15-40° Simple geology Stacked sequence of leucogranite (Alaskites) intrusions of varyi
Slide 14: The optimised Etango resource
The optimised Etango resource DFS DFS OK cut-off grade of 100 ppm Model Mt U3O8 Mlbs For personal use only 25m 25m 75 trucks of the same Measured 63 205 28 10m grade 201ppm Indicated 273 200 120 Inferred 46 202 20 75ppm wireframes 16.5 kt @ 201ppm Total 381 201 169 Ordinary Kriged 60 trucks some Opt
Slide 15: Lower movements and accelerated production
Lower movements and accelerated production For personal use only Conventional truck and shovel open pit mining with radiometric scanning grade control Fleet purchase and owner-operation assumed given the expected life and scale of Etango LOM strip ratio reduced to 2.8:1 (from 3.3:1) due to: –
Slide 16: Heap leach processing
Heap leach processing Large scale test work delivers integrity For personal use only – 180t treated to date through industrial-scale heap leach demonstration plant; outstanding results and genuine de-risking – Upside potential exhibited in the demonstration plant work has not been incorporated in
Slide 17: De-risked through the demonstration plant
De-risked through the demonstration plant For personal use only 17
Slide 18: Infrastructure rich
Infrastructure rich For personal use only Grid operating power – NamPower proposed 35 MVA supply to Etango following upgrade – Construction of new overhead line from site to Kuiseb substation – Expected 36 month lead time from agreement – Construction power via diesel generators Water – Sourced
Slide 19: Established uranium and acid logistics
Established uranium and acid logistics For personal use only Uranium export mechanics – Walvis Bay is a uranium rated export port – Drummed U3O8 from Etango to be trucked 79km to Walvis Bay and shipped through the port – Established uranium sales regulatory framework Acid – Sulphuric acid to be
Slide 20: Driving a large, long life project
Driving a large, long life project For personal use only DFS Opt Study DFS Pre-production capex (DFS Op Study) = US$793M Pre-production capital expenditure (US$M) (Nov 2015) (Apr 2012) – Reduced 9% (US$77M) from DFS estimate Mining (including mine fleet) 131 127 – Development capital intensity of
Slide 21: Sharply lower operating costs
Sharply lower operating costs Operating cost breakdown (LOM estimate) For personal use only Etango operating costs (DFS Optimisation Study) Other mi ning, 8% Proces s labour, Other process, Sul phuric a cid, 1% 4% 13% – US$33/lb average in first 5 years (DFS estimate US$41/lb) Mi ni ng labour, Rea
Slide 22: Etango indicative development timeline
Etango indicative development timeline For personal use only H1 H2 H1 H2 H1 H2 H1 H2 H1 Activity 2020 2016 2016 2017 2017 2018 2018 2019 2019 HL Demonstration Plant Value Engineering DFS Update Project Financing Uranium Marketing Project Approval Detailed Engineering Construction Commissioning Full
Slide 23: Project financing considerations
Project financing considerations For personal use only Expected precursors to future major U project financing 1. Spot and term uranium price improvement 2. Increased term market liquidity and depth Equity participation from a downstream strategic investor logical at the Etango asset level – Pro
Slide 24: Appendix 1: Etango production profile
Appendix 1: Etango production profile For personal use only Production Feed grade (Mlbs) (ppm) 12 300 10 250 8 200 6 150 4 100 2 50 0 2020 2021 2022 2025 2026 2027 2028 2031 2032 2033 2034 2023 2024 2029 2030 2035 Production (Mlbs U3O8) Plant feed grade (ppm) 24
Slide 25: Appendix 2: U spot price forecasts and Etango economics
Appendix 2: U spot price forecasts and Etango economics For personal use only Historically long term contract premiums have averaged 23% although they decrease with increasing spot prices. The long term contract premium when spot prices were in the range of US$65/lb to US$75/lb averaged 14%. 25
Slide 26: Appendix 3: Debt free with 100% of Etango
Appendix 3: Debt free with 100% of Etango* For personal use only A$6M CASH (royalty) RESIDUAL 20% A$3M CASH HOLDING IN (placement) ETANGO PROJECT RESOURCE BANNERMAN PROJECT CAPITAL FUNDS RESOURCES VENDORS 106.7M SHARES (A$8M notes A$1M CASH convert @ A7.5c) A$4M CASH (remaining A$4M 123.4M SHARES no
Slide 27: Appendix 4: Peer project comparatives
Appendix 4: Peer project comparatives For personal use only Etango is one of the most significant uranium projects not owned by a major Pro forma 2014 ura nium production (mlbs pa) 20 18 16 14 12 10 8 6 4 2 0 McArthur River Cigar Lake (full) Husab Tortkuduk Olympic Dam Etango Triple R SOMAIR Kinty
Slide 28: Appendix 5: Resources & Reserves disclosures
Appendix 5: Resources & Reserves disclosures For personal use only Etango Project – Mineral Resource Estimate Mineral Resource Measured Indicated Inferred Nov 2015 Deposit Cut Off Tonnes Grade In-situ Tonnes Grade In-situ Tonnes Grade In-situ Grade (Mt) (U3O8 U3O8 (Mt) (U3O8 U3O8 (Mt) (U3O8 U3O8 (U3
Slide 29: Appendix 5: Resources & Reserves disclosures
Appendix 5: Resources & Reserves disclosures Etango Project – Ore Reserve Estimate For personal use only Ore Reserve Proved Probable Total Nov 2015 Deposit Tonnes Grade In-situ Tonnes Grade In-situ Tonnes Grade In-situ (Mt) (U3O8 U3O8 (Mt) (U3O8 U3O8 (Mt) (U3O8 U3O8 ppm) (Mlbs) ppm) (Mlbs) ppm) (Mlb
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