Bannerman Energy, which is currently developing its flagship Etango Uranium Project in Namibia, says it expects the granting of its mining licence by the Ministry of Mines and Energy this quarter, with the mine design now complete.
This comes as the Australian uranium development company announced its submission of the mining licence application to the Ministry for the proposed Etango-8 uranium mine last year in August.
“Bannerman has been working constructively with the MME and understands that the Etango mining licence application is in an advanced stage of consideration. Grant of the mining licence is anticipated during the current quarter and will represent satisfaction of the final non-market prerequisite to proceed with comprehensive off-take contracting and project financing activities,” the company stated in its latest quarterly activities report.
“The mine design is complete, and the Request For Quotations (RFQs) for the mining contract will be finalised in Q3 2023. The 3D modeling of the plant is progressing on schedule, with a focus on the front-end crushing circuits.”
Bannerman now targets to make its final investment decision in the first half of next year, as per a December announcement, moving away from the previous target of the second half of 2023.
The construction of the Etango-8 project is still expected to take 34 months to complete, including a detailed design phase.
“Bannerman’s strategy remains unchanged – advancing Front End Engineering and Design and other key work streams on Etango to deliver currency of quotation and overall development shovel-readiness while maintaining a strong balance sheet liquidity and strategic patience with respect to the satisfaction of key external factors. This approach is advancing Etango towards uranium market permitting and a targeted positive Final Investment Decision during H1 CY2024. Construction of the Etango Project is expected to take approximately 34 months (including detailed design).”
Bannerman Energy’s definitive feasibility study (DFS) indicates that it would require more than N$5.6 billion (US$320 million) in pre-production funding.
According to the DFS, pre-production capital expenditure (capex) is estimated at N$5.5 billion (US$317 million), up from the previous estimate of N$4.8 billion (US$274 million) in 2021.
The uranium development company noted that yellowcake term contract liquidity and pricing have also improved but remain restrained in comparison.
“While underlying uranium market dynamics continue to firm, utilities have demonstrated a greater focus on contract enrichment and conversion activities through 2023. Bannerman’s well-established position with respect to offtake marketing is that the company will not diminish the long-term underlying value of Etango by committing to contracting its planned uranium output on price (and other terms) that it considers unrepresentative of long-term market fundamentals and producer opportunity,” the company said in its report.
Bannerman appointed Olga Skorlyakova to the role of Vice President of Market Strategy, responsible for the company’s nuclear industry marketing strategy and uranium sales.
“The establishment of this role, and the appointment of an executive with Olga’s professional background and expertise, form an integral part of the build and roll-out of Bannerman’s long-term uranium marketing program for Etango,” the company said.
Bannerman’s cash balance at the end of June 2023 was N$500 million (A$42.6 million), with no debt (other than typical creditor balances) or convertible instruments.
Total exploration and development expenditure for the quarter was N$25.9 million (A$2.2 million), which included Front End Engineering and Design work on the Etango Project.
