Bannerman Energy Ltd · ASX:BMN
Bannerman Energy — Investor Presentation (September 2016)
23 slides from Bannerman Energy's investor presentation, Sep 9, 2016
Slide 1: Corporate Update September 2016
For personal use only CORPORATE UPDATE September 2016
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
Bannerman at a glance 3 Capital structure Focused on 100% owned Etango uranium project in Namibia ASX share price A$0.026 For personal use only 12 month share price range A$0.025 - 0.06 Sector leading valuation leverage to uranium price increases Shares on issue 712 million Market capitalisation A$1
Slide 4: Why uranium?
Why uranium? 4 Nuclear industry For personal use only Further strong non-OECD Key source of clean, base experiencing growth fuelled by Russia load power sees solid unprecedented growth and India growth profile in OECD through China expansion Looming supply shortfall Very few U development Dynamics p
Slide 5: Why are spot and term prices in the doldrums?
Why are spot and term prices in the doldrums? 5 Primary supply (ie mine Uranium volumes contracted production) is less than primary For personal use only demand (power generation). Secondary supply is putting the market into oversupply Underfeeding (~50%) Sales by Russia and US Limited invento
Slide 6: The China behemoth
The China behemoth 6 Domestic clean power expansion Nuclear power export priority For personal use only Today: Hi-tech export priorities 34 reactors in operation (31 GWe) Nuclear power and high speed commuter tech 20 reactors under construction (23 GWe) Shifting dynamics of uranium demand
Slide 7: The market is set to tighten
The market is set to tighten 7 Global uranium projects incentive pricing curve For personal use only Large uncovered positions plus growing uranium demand Future uncontracted fuel requirements globally Mlbs U3O8 230 205 ~25 Mlbs secondary supply (?) 180 155 130 Annual cumulative production (Mlbs U3O
Slide 8: …with potential short term catalysts
…with potential short term catalysts 8 Potential price catalysts Will recent history repeat itself? For personal use only Japanese restarts Uranium volumes contracted and price 2000-2007 Primary supply disruption Economic (closure, care and maintenance) Physical, climatic, social Lack of Kazak
Slide 9: Why Bannerman?
Why Bannerman? For personal use only 9 A simple, largely de-risked Competitive and robust World class resource scale project with granted project economics with high strategic value environmental permitting Namibia a globally Sector leading valuation The right team to deliver significant producer an
Slide 10: World class resource and project scale
World class resource and project scale 10 EARLY STAGE OR CONCEPTUAL STUDY For personal use only DETAILED FEASIBILITY OMAHOLA (ASX: DYL) WORK COMPLETE YELEERIE MULGA ROCK (TSX: CCO) (ASX: VMY) WILUNA (ASX: TOE) TRIPLE R (TSX: FCU) SALAMANCA (ASX: BKY) ETANGO NORASA (ASX: BMN) (TSX: FSY) KINTYRE (TSX:
Slide 11: …with high strategic ownership value
…with high strategic ownership value 11 20 Operating mine Etango is the largest uranium For personal use only Pro forma 2015 ura nium production (mlbs U 3O8 pa) 18 development project or mine Construction/ramp-up 16 not currently owned by a Study phase global uranium major or state 14 owned entity (
Slide 12: A relatively simple project
A relatively simple project For personal use only 12 Ave. Australian project Ave. Canadian project LOW GRADE HIGH SIMPLE / LOW COST COMPLEXITY / COST COMPLEX / HIGH COST MINE METHOD Conventional open pit ISR or conventional underground Specialised underground (ice curtains, etc) PERMITTING PROCESSES
Slide 13: …that has been largely de-risked
…that has been largely de-risked 13 No development roadblocks Etango Project Heap Leach Demonstration Plant For personal use only DFS completed (NI 43-101) optimised 2015 Heap leach demonstration plant completed. Confirmed: High recovery (93% vs DFS: 87% Fast leaching (20 days) Low acid cons
Slide 14: Robust project economics
Robust project economics 14 Key project parameters DFS Opt Study World class scale With available expansion (November 2015) For personal use only Production (U3O8 LOM avg) 7.2 Mlb pa M&I Resource: 165 Mlbs U3O8 Ore body open at depth Peak production (U3O8) – Years 3/4 +10 Mlb pa Reserves: of 1
Slide 15: …that are globally competitive
…that are globally competitive For personal use only 15 Flagship Etango, Triple R, Norasa, Letlhakane, Lance, US Temrezli, Honeymoon, Salamanca, Omahola, Mulga Rock, Wiluna, WA project and Namibia Canada Namibia Botswana (100%) Turkey SA (80%) Spain (100%) Namibia (100%) WA (100%) (100%) location (1
Slide 16: Sector leading valuation leverage
Sector leading valuation leverage 16 500% Outstanding upside Spot Price (min) personal use only Apr 2007 – Aug 2007 leverage Term Price Post Fukushima uranium Jun 2007 – Apr 2008 400% price has minimised % of base Etango NPV (base = 100%) UXC Est. Domestic downside leverage Chinese Production In
Slide 17: Namibia a globally significant producer
Namibia a globally significant producer 17 Uranium mine production by country (2015) Namibia’s uranium credentials For personal use only Effective uranium jurisdiction tonnes U3 O8 Rössing uranium mine in operation for 40+ years 30,000 3 new uranium mines developed in last 10 years Regulatory
Slide 18: …and first class operating jurisdiction
…and first class operating jurisdiction 18 Stable government and fiscal regime For personal use only Strong rule of law Safe and secure Established and transparent mining legislation Excellent regional infrastructure Established supply chains Swakopmund town nearby Walvis Bay port an
Slide 19: Strong management team with Namibian focus
Strong management team with Namibian focus For personal use only 19 Brandon Munro Lived in Namibia for 5+ years Former M&A lawyer, last 10 years as mining executive (Chief Executive Officer & MD) Prominent in Namibian mining and uranium sectors Former GM of Bannerman, MD of Kunene Resources Ltd Wern
Slide 20: We are ready to capture considerable uranium upside
We are ready to capture considerable uranium 20 upside For personal use only Advanced Leveraged Strategic 2 year pilot plant program Strong anticipated U price In premier uranium mining with outstanding results correction jurisdiction: Namibia No development Sector leading valuation Worl
Slide 21: Appendix A: Bannerman Team
Appendix A: Bannerman Team 21 Strong and experienced board Skilled management with Namibian expertise For personal use only 30+ years investment banking experience incl. head 25+ years experience in uranium, diamond, coal of Rothschild Australia. Werner Ewald mining; prior to joining BMN was Manager
Slide 22: Appendix B: Etango Project – resources and reserves
Appendix B: Etango Project – resources and 22 reserves Etango Project – Mineral Resource Estimate Mineral Resource Note 1: Refer to the Competent Persons Statement at the start of this document for For personal use only Measured Indicated Inferred further information on the Etango Mineral Resource E
Slide 23: Appendix C: Etango development timeline
Appendix C: Etango development timeline 23 Etango development pipeline Current focus areas For personal use only 2016 2017 2017 Final project optimisation/value engineering Activity (months) +6 +12 +18 +24 +30 +36 H2 H1 H2 Positive results from Demonstration Plant Processing costs HL Demonstrati
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