Slide 1: Uranium: Sentiment shifting
For personal use only Uranium Sentiment shifting. Brandon Munro, CEO November 2018
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 For personal use only f
Slide 3: Bannerman at a glance (BMN:ASX)
Bannerman at a glance (BMN:ASX) 3 Capital structure Etango uranium project, Namibia (271Mlbs* U3O8 resource). ASX share price A$0.05 Sector leading valuation leverage to uranium price increases. For personal use only 12 month share price range A$0.034 – A$0.077 Shares on issue 1,030 million Largest
Slide 4: Why uranium, and why now?
Why uranium, and why now? For personal use only 4 Decade long surplus Supply disruption Sentiment shifting swinging to deficit in 2018 dislodging spot prices Financial players to Geo-politics restraining Demand momentum balance market utilities from contracting continues to build Spot price correcti
Slide 5: Headed for deficit for the first time in almost years
Headed for deficit for the first time in almost 10 years… 5 40.0 For personal use only 30.0 Global supply-demand balance (Mlbs U3O8e) 20.0 10.0 0.0 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018E -10.0 -20.0 -30.0 Source: Cameco, UxC, BMO Research, May 2018
Slide 6: From a similar starting point, look what happened last time
…and from a similar starting point, look what happened last time! 6 40.0 US$136/lb For personal use only 30.0 Global supply-demand balance (Mlbs U3O8e) GFC 20.0 10.0 0.0 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018E US$29/lb -10.0 US$21/lb -20.0 -30.0 Source: Ca
Slide 7: Supply disruption dislodging spot prices
Supply disruption dislodging spot prices For personal use only 7 U3O8 spot (USD) April – Nov 2018 + $8/lb + 38% Annualised supply disruption exceeds 20% of market (35 Mlbs)
Slide 8: Financial players to balance the market
Financial players to balance the market 8 Uranium Uranium Royalty Yellow Cake plc For personal use only Participation Corp Corp (LSE:YCA) (TSE:U) Sachem Cove Ocean Nuclear Partners Segra Capital Tribeca Investment Partners Uranium Trading Corp (NYSE:UTC) L2 Capital
Slide 9: Geo-politics restraining utilities from contracting
Geo-politics restraining utilities from contracting 9 Utility procurement programs on hold • s232 Trade Investigation stalled US contracting Recent history offers insights into market behaviour For personal use only • s232 uncertainties will to run into mid-2019 • Geo-political uncertainty (US-China
Slide 10: Demand momentum building
Demand momentum building 10 18 20 80 16 70 For personal use only 14 15 60 12 50 10 10 40 8 30 6 d 5 20 4 2 10 0 0 0 25 yr. 2015 2016 2017 2018 2019 UAE South Russia India China R.O.W. India Russia China R.O.W. ave. Korea Nuclear reactor completion 55 reactors under construction 151 reactors on-order
Slide 11: In a sector famed for catalyst response, a correction still required
In a sector famed for catalyst response, a correction still required 11 $180 Three Mile GFC commences Island For personal use only $160 $140 McArthur River Fukushima production $120 McArthur River suspended production (mine flooded) $100 suspended (economics) $80 Down-blended Oil crisis Russian warh
Slide 12: How to get set for a uranium bull market
How to get set for a uranium bull market For personal use only 12 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 13: Bannerman is the ideal uranium bull market exposure
Bannerman is the ideal uranium bull market exposure For personal use only 13
Slide 14: Track record in sector
Track record in sector For personal use only Bannerman has a long track record in uranium 14
Slide 15: Bannerman has a long track record in uranium
Bannerman has a long track record in uranium For personal use only 15 Uranium (only) since 2006 Operating in Namibia since 2006 Deep sector experience History of institutional support Nuclear industry profile Established credibility and leverage
Slide 16: Bannerman has a long track record in uranium
Bannerman has a long track record in uranium 16 Peak enterprise value $522m $4.00 BMN share price (ASX, monthly average) 40.0 For personal use only 30.0 $3.00 Global supply-demand balance (Mlbs U3O8e) 20.0 $2.00 10.0 $1.00 0.0 $0.00 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2
Slide 17: Leveraged to price
Leveraged to price For personal use only Bannerman offers sector leading valuation leverage to a uranium price correction 17
Slide 18: Outstanding in-ground price leverage
For personal use only EV per res ource/reserve pound (US$/lb) 0.00 0.50 1.00 1.50 2.00 2.50 NexGen (TSX:NXE) Fission (TSX:FCU) Boss (ASX:BOE) Outstanding in-ground price leverage Peninsula (ASX:PEN) Toro (ASX:TOE) Deep Yellow (ASX:DYL) EV / Resource Berkeley (ASX:BKY) GoviEx (TSX:GXU) EV / Reserve F
Slide 19: Sector leading valuation leverage
Sector leading valuation leverage 19 NPV sensitivity curve 500% to uranium price (2015 Term Price Optimisation Study) (base only = 100%) Jun 2007 – Apr 2008 400% UXC Est. Domestic use Chinese Production ge Incentive Price ran 8 on Etango post-tax NPV 300% et i c c r Spot Price (base) personal Pre-Fu
Slide 20: Strategic appeal
Strategic appeal For personal use only Etango is the largest un-aligned uranium project with a feasibility study 20
Slide 21: Strategic appeal: Global uranium mines and projects
21 Wiluna (PFS) Honeymoon (PFS) Lance (in ramp-up) Letlhakane (PEA/SS) Madaouela (PFS) Mulga Rock (DFS) * CGN owns 19.99% of Fission Uranium Corp head equity ** CNNC owns 25% of Langer Heinrich project equity *** SGRF has conversion rights and options to own up to 37% of Berkeley Energia head equity
Slide 22: Strategic appeal: Global uranium projects
22 Wiluna (PFS) Honeymoon (PFS) Lance (in ramp-up) Letlhakane (PEA/SS) Madaouela (PFS) Mulga Rock (DFS) * CGN owns 19.99% of Fission Uranium Corp head equity ** CNNC owns 25% of Langer Heinrich project equity *** SGRF has conversion rights and options to own up to 37% of Berkeley Energia head equity
Slide 23: Global uranium projects not owned by a major or SOE
23 Wiluna (PFS) Honeymoon (PFS) Lance (in ramp-up) Letlhakane (PEA/SS) Madaouela (PFS) Mulga Rock (DFS) * CGN owns 19.99% of Fission Uranium Corp head equity ** CNNC owns 25% of Langer Heinrich project equity *** SGRF has conversion rights and options to own up to 37% of Berkeley Energia head equity
Slide 24: Projects not owned by a major or SOE with a completed DFS
24 Wiluna (PFS) Honeymoon (PFS) Lance (in ramp-up) Letlhakane (PEA/SS) Madaouela (PFS) Mulga Rock (DFS) * CGN owns 19.99% of Fission Uranium Corp head equity ** CNNC owns 25% of Langer Heinrich project equity *** SGRF has conversion rights and options to own up to 37% of Berkeley Energia head equity
Slide 25: Advanced asset
Advanced asset For personal use only Etango is the most advanced uranium asset not in construction 25
Slide 26: A shovel ready project
A shovel ready project 26 EARLY STAGE OR CONCEPTUAL STUDY ADVANCED FEASIBILITY WORK DEVELOPMENT For personal use only Salamanca (ASX:BKY) Etango (ASX:BMN) Mulga Rock (ASX:VMY) Honey Moon (ASX:BOE) Norasa (TSX:FSY) Madaouela (TSXV: GXU) Wiluna (ASX:TOE) Arrow (TSX/NYSE: NXE) Kintyre (TSX:CCO) Triple
Slide 27: Low non-financial risks
Low non-financial risks For personal use only Etango has low technical risk in the world’s premier uranium jurisdiction 27
Slide 28: Bannerman has low technical risk
Bannerman has low technical risk… 28 Etango is a low technical risk project BMN market cap has substantial value backing For personal use only 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 Simpl
Slide 29: In the world's premier uranium jurisdiction
…in the world’s premier uranium jurisdiction 29 Namibia is the premier uranium jurisdiction For personal use only ü +40 year production history ü Global player in uranium ü Politically/socially supportive ü Excellent infrastructure: port/road/rail/water/power First class operating jurisdiction ü Sta
Slide 30: Leadership can deliver
Leadership can deliver For personal use only Bannerman has the team to deliver value to shareholders 30
Slide 31: Bannerman has the team to deliver value to shareholders
Bannerman has the team to deliver value to shareholders For personal use only 31 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 exper
Slide 32: Bannerman offers outstanding uranium sector opportunity
Bannerman offers outstanding uranium sector opportunity 32 A sector moving from long … plus growing demand bear market into deficit… momentum. For personal use only … sentiment is shifting. … with supply disruption In a sector famed for Bannerman can maximise dislodging spot prices… bull markets… sh
Slide 33: Appendix A: Uranium peer comparative
Appendix A: Uranium peer comparative For personal use only 33 Key listings ASX: BMN ASX: VMY ASX: TOE ASX: BKY ASX: BOE ASX: PEN ASX: DYL ASX: ACB TSX: FSY TSX: FCU TSX: NXE TSX: GXU AIM: BKY NYSE: NXE Market cap 33 20 49 43 74 37 64 25 34 251 802 62 (US$m) Flagship Etango, Mulga Rock, Wiluna, Salam
Slide 34: Appendix B: Bannerman team
Appendix B: Bannerman team 34 Strong and experienced board Skilled management with Namibian expertise For personal use only 30+ years investment banking experience incl. head of 20 years transactional and financing experience as a Ronnie Beevor Rothschild Australia. Brandon Munro corporate lawyer an
Slide 35: Appendix C: Etango Project – resources and reserves
Appendix C: Etango Project – resources and reserves 35 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 For personal use only further information on the Etango Mineral Resource E
Slide 36: Appendix D: Robust development economics
Appendix D: Robust development economics 36 DFS Opt Study Key project parameters To be improved in DFS Update World class scale (November 2015) For personal use only Production (U3O8 LOM avg) 7.2 Mlb pa Processing Optimisation Study completed 2017 Total resource size of 271 Mlbs* U3O8, including ü U