CHAMWE KAIRA
Bannerman Energy Ltd’s financial position remained solid in the financial year ended 30 June 2024. As of 30 June 2024, its cash balance stood at 24 million Australian dollars (A$), bolstered by the successful raising of A$85 million through a two-tranche placement to institutional and sophisticated investors. The first tranche of A$75.7 million was received in early July, and the second tranche of A$9.3 million was received in mid-August 2024.
Executive chairman Brandon Munro said this in the 2024 annual report, which highlighted a year of disciplined execution of its strategy. Munro said Bannerman made significant strides in advancing its flagship Etango Uranium Project in Namibia.
“These milestones enable our preparation for the project’s construction phase. Our detailed design activities have commenced, focussing on bulk earthworks and civil engineering, with early works construction progressing as planned. In December 2023, we were granted the Etango Mining Licence (ML 250), marking an essential step towards the project’s realisation. With the grant of ML 250, all necessary licences and approvals are now in place to construct and operate the Etango mine,” said Munro.
Munro said the uranium market experienced notable volatility over the past year. The spot price of uranium reached a high of US$107 per pound in early February before stabilising to trade between US$85 per pound and US$95 per pound. By the end of the financial year, the spot price was US$87 per pound, while the long-term price indicator closed at US$80 per pound.
He said the global outlook for uranium remains positive, driven by increasing support for nuclear power worldwide.
Furthermore, Munro said current analysis indicates a long-term trend of rising demand for uranium, with the market expected to see significant growth in reactor requirements, especially in China and Western countries diversifying their nuclear fuel supplies away from Russia.
“The ban on Russian nuclear fuel imports into the USA and similar actions in the EU, UK, and Canada are likely to constrain supply, thereby increasing demand for uranium from other sources. The projection for uranium prices remains strong, with the long-term price expected to continue its upward trajectory due to these geopolitical shifts and the structural supply deficit in the market. This favourable outlook positions us well to capitalise on the growing demand and secure a long-term sustainable uranium business,” he said.
The Etango Project is one of the world’s largest undeveloped uranium deposits, located in the Erongo uranium mining region, which hosts the Rössing, Husab and Langer Heinrich mines.
On 14 December 2023, Bannerman was granted Mining Licence (ML 250) for the Etango Project. The company has already obtained all necessary environmental and heritage approvals based on environmental baseline monitoring and studies commenced 12-years ago. The pre-production capital forecast for Etango is US$353 million.
