CHAMWE KAIRA
Bannerman Energy Ltd. executive chairman, Brandon Munro, has disclosed that the September quarter marked another period of strong progress for Bannerman as the company advanced its Etango uranium project in the Erongo Region toward a final investment decision.
“Our strong balance sheet and flexible approach to project development enable us to exercise a gated approach to Etango development, with phased green lighting of various construction works in line with advancement across broader project work streams and financial capacity. The success of our recent A$85 million equity placement delivered us the ability to move into the next phase of early construction and long-lead order activities at Etango, thereby maintaining critical path timelines,” said Munro.
He said the Etango financing process also progressed during the quarter, as the company compared a range of conventional and strategic funding opportunities that reflect the growing interest in long-term uranium supply.
“Our strong financial position allows us to take the appropriate time in this area to ensure the optimal overall funding mix is delivered for the benefit of all our stakeholders,” said Munro.
He said the unprecedented positive energy at the World Nuclear Association’s annual symposium in September reflects the further firming of long-term contract markets as the sector enters a seasonally strong period.
“We look forward to accessing the benefits of our careful exercise of patience at this early stage in the uranium cycle.”
Bannerman has released its quarterly activities report, focusing on the continued progress of its Etango Uranium Project during the quarter and significant developments across a range of key work streams.
The company is advancing toward a targeted final investment decision for Etango, supported by a strong cash position and favorable market conditions.
The report highlights that the Etango development progressed in accordance with Bannerman’s gated, ‘phased greenlight’ construction strategy.
The first phase of early works, including access road and water supply construction, have been completed safely, on time and within budget.
Bannerman said the completion of A$85 million in two-tranche equity placement facilitated the next phase of early construction works.
The key 24-month bulk earthworks and construction power contracts were among the long-lead orders that were awarded.
The company said that it has placed an order for a tertiary crusher (HPGR) and begun manufacturing; the detailed design work for the plant is progressing.
Bannerman said finance and offtake marketing work streams are advancing, including evaluation of project/corporate debt as well as potential offtake and strategic JV opportunities.
The company reported achieving a substantial quarter-end cash balance of A$95.7 million with zero debt.
Long-term uranium price closed the quarter at a 15-year high of US$82 per pound U3O8, reflecting an ongoing positive market outlook and building utility contract demand.
