Bannerman Awarded Etango Mining Licence

ETANGO NOW FULLY PERMITTED - MINING LICENCE GRANTED, GIVING ETANGO A CLEAR PATHWAY TO DEVELOPMENT

I am delighted to share the momentous news that we have been granted the Etango Mining Licence (ML) by the Namibian Ministry of Mines and Energy (MME). Whilst the ML is an important milestone event, the key importance of this news is that our Etango uranium project is now fully permitted and shovel ready – just as the uranium sector has tightened.  I am looking forward to 2024 as a year that Bannerman shareholders will remember.

The grant of the ML is the culmination of more than 15 years of project advancement at Etango, including a permitting process that commenced with environmental baseline studies in 2008. I know this process well – from 2009 I was responsible for the Etango Environmental and Social Impact Assessment (ESIA) whilst living in Namibia.

The ML is a significant milestone that strongly validates our long-standing commitment to the Etango Project. It also reflects the support and belief that the Namibian government has in Bannerman, and in our ability to successfully deliver Etango.

With the ML granted, Etango is now fully permitted as it advances towards a targeted positive Final Investment Decision (FID). As you may recall, we released a Definitive Feasibility Study (DFS) in December 2022 which robustly supplemented our ML application and significantly de-risked the development from a technical and financial perspective. With both these key workstreams now complete (ie approvals and feasibility), Etango now joins an elite club of fully permitted, fully engineered uranium projects – ideally positioned to capitalise on current and expected future strength in uranium market fundamentals. 

ETANGO NOW FULLY PERMITTED - MINING LICENCE GRANTED, GIVING ETANGO A CLEAR PATHWAY TO DEVELOPMENT

Dear Emma,

I am delighted to share the momentous news that we have been granted the Etango Mining Licence (ML) by the Namibian Ministry of Mines and Energy (MME). Whilst the ML is an important milestone event, the key importance of this news is that our Etango uranium project is now fully permitted and shovel ready – just as the uranium sector has tightened.  I am looking forward to 2024 as a year that Bannerman shareholders will remember.

The grant of the ML is the culmination of more than 15 years of project advancement at Etango, including a permitting process that commenced with environmental baseline studies in 2008. I know this process well – from 2009 I was responsible for the Etango Environmental and Social Impact Assessment (ESIA) whilst living in Namibia.

The ML is a significant milestone that strongly validates our long-standing commitment to the Etango Project. It also reflects the support and belief that the Namibian government has in Bannerman, and in our ability to successfully deliver Etango.

With the ML granted, Etango is now fully permitted as it advances towards a targeted positive Final Investment Decision (FID). As you may recall, we released a Definitive Feasibility Study (DFS) in December 2022 which robustly supplemented our ML application and significantly de-risked the development from a technical and financial perspective. With both these key workstreams now complete (ie approvals and feasibility), Etango now joins an elite club of fully permitted, fully engineered uranium projects – ideally positioned to capitalise on current and expected future strength in uranium market fundamentals. 

The art of Strategic Patience

Earlier this year, I outlined Bannerman’s keystone strategy of Strategic Patience and the importance of making time our friend. Over the past year, we have implemented this strategy to great effect.

While waiting for market conditions to align in our favour, alongside mine permit processes running their course, we have advanced FEED studies to optimise the technical parameters of the Etango Project (as well as maintained disciplined cash and cost management policies). This patient advancement has borne fruit.

Progressive uranium market tightening over this time has placed us in an increasingly strong strategic position to maximise the opportunity presented by Etango within this environment. This includes a rapidly building leverage with utilities as the balance of market power progressively shifts from the buyers of yellowcake to the sellers of an increasingly scarce fuel source. It is this ongoing dynamic that also means that our current strong position is set to get even stronger.

Etango achieving fully permitted status is another cog in this strategy. Importantly, it supercharges our contracting appeal to major utilities, outside of just the growing uranium market pressures. Contrary to popular belief, the key focus for nuclear utilities is not just price. It is a relevant and important factor, but so is securing and maintaining a consistent, reliable source of U3O8 supply. The current world provides a ready insight into the many risks that can be posed to such security of supply – eastern Europe and Niger being ready examples.

Production from Namibia – a highly supportive partner with long-standing community support for uranium mining – has been highly sought after for 45 years. These credentials contribute to Namibia’s reputation as a trusted uranium supply source and the 3rd largest producer of U3O8 in the world. With Etango’s location in Namibia, secured mine permitting and robust economics, Bannerman’s stature and appeal as a future supplier of yellowcake to global markets continues to grow.

Early works underway

Upon the grant of the ML, we immediately moved to kick off early development works at Etango. This involved the award of two contracts to local Namibian businesses for the construction of a temporary water pipeline and access road. The temporary pipeline will ensure sufficient water is available onsite when the main earthworks and civil contracts commence, and the access road will enable controlled access to the mine site with minimal impact on the surrounding area to be achieved from the start of full construction works.

Why did we move so quickly? Because these early works enable us to maintain our shovel readiness. The temporary water supply, in particular, is a critical path item, so getting a head start on its procurement and development allows us to readily hold our target construction timeline. It is also an excellent opportunity to test our systems and people at an early, small scale prior to the commencement of full-scale project construction works.

Building the team to deliver

Cognisant of the current and expected future ramp-up in activities, the Bannerman team has increased in size and scope over the past year since our application for the ML was submitted.

In February 2023, we appointed Gavin Chamberlain, a proven resources executive to the role of Chief Operating Officer. Gavin’s extensive experience in construction, engineering and project management has been instrumental throughout the year. One of his previous roles was as Project Director for the development of the US$2.2 billion Husab Uranium Project in Namibia, which is now one of the world’s largest operating uranium mines.

Since joining Bannerman, Gavin has demonstrated to us all why he is so highly regarded in major project development land. He is a consummate professional and I believe that Etango is in the safest of hands under his stewardship.

We were also fortunate to have Olga Skorlyakova join the Bannerman team in June 2023 as Vice President, Market Strategy. As a highly accomplished nuclear industry executive, Olga has extensive experience in the uranium space from business development in the nuclear fuel sector to the sale of enrichment services. Olga has been an excellent addition to the Bannerman team, leveraging her breadth of sector understanding and an extensive network of relationships formulated over her 15 years working within the nuclear and uranium industries.

You can view all our executive team and their bios here.

With these additions, Bannerman’s organisational infrastructure has been substantially augmented from both a corporate perspective and in terms of our nuclear and uranium development and mining expertise. As 2023 comes to a close, we have the right team to deliver on Etango, and I am grateful for their dedication and efforts over the past year.

I am heartened by the strong support and turnout from both longstanding and recent investors in uranium and Bannerman. To those who have followed us and the Etango journey for a while, as always, thank you. To those who are newer to the sector and/or the Bannerman story, I look forward to you also bearing witness to the immense opportunity that uranium and nuclear, and Bannerman Energy in particular, offer in the critical global push towards decarbonisation.

Global Uranium Conference, 16 Nov 2023. Uranium Analysts Panel, moderated by Brandon Munro, CEO Bannerman Energy. Panellists included: James Bullen - Canaccord Genuity, Andrew Hines - Shaw and Partners and Regan Burrows - Bell Potter

It has been a great pleasure to update you all over the past year and I hope you stay tuned – and invested - for an exciting 2024. With the ML under our belt we now continue the march towards FID next year, strengthening market conditions permitting. I wish you and your family a safe holiday break and a Happy New Year.

Regards,
Brandon