Interview with Gavin Chamberlain, CEO of Bannerman Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/bannerman-energy-asxbmn-study-doubles-project-5153

Recording date: 14th June 2024

Bannerman Energy (ASX:BMN) presents a compelling investment case as it advances its flagship Etango Uranium Project in Namibia. The company has made significant progress in confirming the project's economics and technical parameters, putting it on track to become one of the world's next major uranium producers.

A recently completed 18-month review process has delivered increased confidence in Etango's capital and operating costs. The capital cost estimate increased just 11.3% to $353 million, including $21 million in discretionary spending to reduce future operating costs or enhance plant throughput. The all-in sustaining cost increased to $39/lb, placing Etango firmly in the bottom half of the global cost curve.

Bannerman is now engaging with potential financiers and offtake partners, with interest coming from utilities in both the Western and Eastern hemispheres. This optionality positions the company well to secure competitive terms. MD Brandon Munro expects to have a financing solution in place and make a final investment decision before the end of 2024.

Etango benefits from its location in Namibia, one of the world's most stable and mining-friendly jurisdictions. With a mining license and all key permits in hand, the project is on the cusp of construction-ready status, making it a standout among uranium development projects globally.

The initial development plan envisages an 8 million ton per annum (Mtpa) operation over a 12-year mine life. However, Bannerman has already identified the potential to double production to 16 Mtpa. With a substantial portion of the required technical work already complete, this expansion could be fast-tracked once the initial operation is up and running.

Uranium market fundamentals are also moving in Bannerman's favor. Years of low prices have curtailed production and exploration, leading to a growing supply deficit as demand continues to rise. With few advanced-stage projects ready to fill the gap, Etango is well-positioned to capitalize on the strengthening market.

In summary, Bannerman Energy offers investors exposure to a significantly de-risked, world-class uranium asset as it approaches a key inflection point. With costs and permits in hand, financing and offtake discussions advancing, and a clear path to production by 2027, the company appears poised to create substantial value as the uranium market continues to recover. The combination of a robust project, an attractive jurisdiction, and strong macro fundamentals makes Bannerman a standout opportunity in the uranium space.

View Bannerman Energy's company profile: https://www.cruxinvestor.com/companies/bannerman-energy

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