Bannerman Energy Ltd · ASX:BMN
Bannerman Energy — Broker Briefing Mining, Resources & Energy Investor Webinar 2021
26 slides from Bannerman Energy's conference presentation, Apr 21, 2021
Slide 1: Broker Briefing Investor Webinar ASX Announcement
ABN 34 113 017 128 Suite 7, 245 Churchill Avenue Subiaco, WA 6008 T +61 8 9381 1436 E info@bannermanresources.com.au bannermanresources.com.au ASX Announcement 21 April 2021 Australian Securities Exchange Level 40, Central Park 152-158 St Georges Terrace Perth WA 6000 Dear Sir/Madam BROKER BRIEFING
Slide 2: Bannerman Resources Etango-8 uranium project
Bannerman Resources Etango-8 uranium project 21 April 2021
Slide 3: Important notices
Important notices Cautionary Statement The Scoping Study referred to in this presentation 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 econ
Slide 4: 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 5: Uranium
U Uranium 4
Slide 6: Outstanding dynamics
Outstanding dynamics Immediate and long-term drivers of uranium ~20Mlbs pa sector deficit +20Mlbs disruption in 2020 COVID extending into 2021 Supply discipline + bear COVID supply disruption in Cigar Lake suspension, market U3O8 prices Kazakh, Canada, Namibia Case challenges elsewhere 2020-30 suppl
Slide 7: Uranium market tightening
URANIUM MARKET tightening Supply depletion drives strong supply-demand fundamentals 6 Source: World Nuclear Association, The Nuclear Fuel Report: Global Scenarios for Demand and Supply Availability 2019-2040
Slide 8: Uranium market tightening
URANIUM MARKET tightening Long term supply deficit, even after idled mines return Inventory drawdown + financial buying 2028 WNA Upper + junior buying 2025 scenario by 2040 Etango already included 7 Source: World Nuclear Association, The Nuclear Fuel Report: Global Scenarios for Demand and Supply Av
Slide 9: 8 Key Thematics vs economic paradigms
8 Key Thematics-vs -economic paradigms Geopolitical tension Geographic imbalance 7 SMRs and China advanced 3 reactors 4 Carbon neutral by Generalist 2050/60 1 investors & speculators6 Electrification ESG and de- Commodities of everything carbonisation supercycle Climate 2 imperative 8 and flight to
Slide 10: 8 Key Thematics driving sentiment switch
8 Key Thematicsdriving sentiment switch (Beyond attractive macro supply-demand fundamentals) World’s largest Electricity growth from China remains Implications from economies committed “electrification of disruptive behemoth SMRs and advanced to carbon neutral by everything” through 14th FYP reactor
Slide 11: Bannerman at a glance
Bannerman at a glance SHARE PRICE CHART (ASX:BMN) CAPITAL STRUCTURE ASX share price A$0.135 12 month share price range A$0.015 – A$0.165 Shares on issue 1,189 million Market capitalisation A$160M (US$125M) Options and performance rights 37 million Average daily volume (ASX 1-mth) 6 million Cash (31
Slide 12: Etango-8 Uranium Project: a world-class uranium asset
ETANGO-8 URANIUM PROJECT A world-class uranium asset § Globally large-scale resource endowment § Low technical risk § Excellent supporting infrastructure § Established uranium operating jurisdiction § Strong in-country presence and engagement § High scalability 11
Slide 13: The Etango journey
The Etangojourney BMN listed on ASX Maiden resource NI 43-101 report Etango Definitive Feasibility Study EPL3345 project Etango Scoping Etango Pre- Environmental Heap leach demonstration acquisition Study feasibility Study approval granted plant construction 2005 2007 2009 2011 2012 2014 Etango Proc
Slide 14: Introducing Etango-8
E-8 Introducing Etango-8 An accelerated project development with strong financial returns 13
Slide 15: Etango-8 rationale and team
ETANGO-8 RATIONALE AND TEAM A substantial body of existing technical and feasibility work § Etango Project advanced study history Advanced study ‒ Definitive Feasibility Study 2012 (DFS 2012); 20Mtpa throughput; estimation accuracy of ±15% history ‒ DFS Optimisation Study (OS 2015); 20Mtpa throughpu
Slide 16: Detailed scoping study information
Detailed scoping study information See www.bannermanresources.com.au/for-investors/presentations/ 4 CAPITAL AND OPERATING COSTS 1 MINING AND PROCESSING 2 INFRASTRUCTURE AND LOGISTICS 5 FINANCIAL FORECASTS 3 SOCIAL LICENCE TO OPERATE 15
Slide 17: Physical outcomes
PHYSICAL OUTCOMES Highly robust technical parameters Key physical parameters Unit Total / LOM Annual average Operations 14+ years 1.93 : 1 Construction period Initial production life months years 24 14.4 NA NA Initial mine life Strip ratio (waste:ore) Mining Ore mined Mt 114.1 7.9 Strip ratio x 1.93
Slide 18: Financial returns
FINANCIAL RETURNS Key financial outcomes Price inputs Unit Strong projected economics LOM average uranium price US$/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 19: Comparative value
Comparative value Comparison of Etango-8 Scoping Study with Etango DFS OS (2015) DFS Opt Study* Etango-8 SS * Does not credit 2017 Key project parameters Project Impact (November 2015) (August 2020) Processing OS gains ($73M Production (U3O8 LOM avg) 7.2 Mlbs pa 3.5Mlbs pa 49% of DFS production*** c
Slide 20: Comparative value
Comparative value Comparison of Etango-8 Scoping Study with Etango DFS OS (2015) DFS Opt Study* Etango-8 SS * Does not credit 2017 Key project parameters Project Impact (November 2015) (August 2020) Processing OS gains ($73M Production (U3O8 LOM avg) 7.2 Mlbs pa 3.5Mlbs pa 49% of DFS production*** c
Slide 21: Key upside opportunities
KEY UPSIDE OPPORTUNITIES Substantial value enhancement potential § Globally large resource of 271Mlbs § Testwork at the Etango 1 2 Future life U3O8 (14.4Mlbs Measured, 150.2Mlbs Processing Heap Leach Demonstration extension and/or Indicated and 106.1Mlbs Inferred)* efficiency and cost Plant indicate
Slide 22: Social licence to operate
SOCIAL LICENCE TO OPERATE Strong position due to historical body of work and engagement § Environmental baseline since 2008 Bannerman’s flagship Learner Assistance Program Environmental § High-quality, peer reviewed ESIA has assisted 3,000 learners over the past ten years across schools throughout N
Slide 23: The path forward
THE PATH FORWARD Production targeted to meet forecast 2025 sector deficits Months to delivery +3 +6 +9 +12 +15 +18 +21 +24 +27 +30 +33 +36 +39 +42 +45 +48 (from Oct 2020) § Etango-8 PFS progressing well with targeted PFS completion by mid 2021 § DFS estimated to take a further 9 – 12 months from DFS
Slide 24: Bannerman team
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 Australia. § Co-Cha
Slide 25: Etango-8: a world-class uranium asset
Etango-8: 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 de
Slide 26: Contact
CONTACT Brandon Munro Chief Executive Officer E: info@bannermanresources.com.au T: +61 8 9381 1436 @BannermanRes @Brandon_Munro Authorised for release by Brandon Munro
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