Chamwe Kaira
Uranium prospector, Bannerman Energy Ltd has said it is expecting to be granted a mining licence by the Ministry of Mines and Energy very soon. The company is developing the Etango project in the Erongo region. The licence is expected to be granted in the last half of this year.
This is contained in a report for the period ended 30 September. Bannerman said during the quarter, there was a sharp rise in the uranium oxide spot price and a positive flow-on effect into capital markets.
“With this backdrop, the Company continued to advance the Front-End Engineering and Design for its flagship Etango Uranium Project 1 in Namibia (Etango) while focusing on prudent cost control and project timeliness.
The company said the Front End Engineering and Design (FEED) is progressing to schedule. Bannerman said it is targeting positive Final Investment Decision (FID) during the first half of 2024.
The company has substantial cash balance of A$39.9 million at quarter end and zero debt. It said uranium spot price continued its rise during the period, finishing the quarter above US$73 per pound.
“Global investment in new and extended life reactors continues to strengthen sector fundamentals as utilities pursue long-term, multi-year supply contracts that emphasise the importance of a secure supply and he need for uranium deliveries from stable jurisdictions free from geopolitical conflicts.”
Bannerman Managing Director and Chief Executive Officer, Brandon Munro, said it has been an exciting quarter as we report continued progress on the Etango FEED against the backdrop of a significant rise in the uranium spot price.
“This momentum continues to reflect favourable uranium market fundamentals, which have also been broadly mirrored in uranium capital markets. These dynamics continue to move in our favour as we advance discussions with prospective offtake customers and evaluate the range of project finance options potentially available to us in this environment.”
