Bannerman Energy says it would require more N$5.6 billion (US$320 million) in pre-production funding after a definitive feasibility study (DFS) into its Etango 8 uranium project, in Namibia, has confirmed the project’s economic viability.
According to the DFS, pre-production capital expenditure (capex) is estimated at N$5.5 billion (US$317-million), up from the N$4.8 billion (US$274-million) estimated in 2021.
Australian listed uranium development company’s all-in sustaining costs (AISC) for the project have dropped from the US$40.3/lb estimated in the PFS to $38.10/lb.
Based on a nameplate capacity of eight-million tonnes a year, the Etango project is expected to have a mine life of 15years, producing 52.6-million pounds of uranium oxide, averaging3.5-millionpounds a year.
The project’s net present value (NPV) is now estimated at N$3.63 billion (US$209 million), down from the N$3.9 billion (US$222 million) estimated in 2021, while the internal rate of return has also decreased from 20.3% to 17%.
“The DFS has confirmed, to a definitive level of study, that the Etango-8 Project firmly warrants development. At a base-case uranium price of US$65/lb, Etango-8 delivers attractive projected returns from a development that has been heavily de-risked via deep prior technical and demonstration plant activity,” Bannerman CEO, Brandon Munro.
“We have commenced Front End Engineering and Design and are moving firmly down the path towards production at the precise moment the world wakes up to the essential role of nuclear power. Our Mining Licence application was submitted in August 2022 and we are well underway with parallel offtake and project finance workstreams. All of this activity is driving towards a targeted positive Final Investment Decision on Etango-8, uranium market conditions permitting, during H2 CY2023.”
Construction of the Etango 8 project is expected to take 34 months to complete, including a detailed design.
