Bannerman Energy Ltd (ASX:BMN, OTCQX:BNNLF, NSX:BMN) has released its Quarterly Activities Report. They are pleased to report on the continued progress of its Etango Uranium Project during the quarter, with significant developments across a range of key workstreams. The Company is advancing towards a targeted Final Investment Decision on Etango, supported by a strong cash position and favourable market conditions.
HIGHLIGHTS
- Etango development progressed in accordance with Bannerman’s gated ‘phased greenlight’ construction strategy.
- First phase of early works, including access road and water supply construction, completed safely, on time and within budget.
- Completion of A$85 million two-tranche equity placement facilitated next phase of early construction works, key contract awards and long-lead orders:
- Key 24-month bulk earthworks and construction power contracts awarded.
- Tertiary crusher (HPGR) order placed and manufacture commenced; plant detailed design work advancing.
- Finance and offtake marketing workstreams advancing, including evaluation of project/corporate debt as well as potential offtake and strategic JV opportunities.
- 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/lb U3O8, reflecting ongoing positive market outlook and building utility contract demand.
"The September quarter marked another period of strong progress for Bannerman as we advance Etango towards a Final Investment Decision. “Our strong balance sheet and flexible approach to project development enables us to exercise a gated approach to Etango development, with phased green lighting of various construction works in line with advancement across broader project workstreams 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. The Etango financing process also progressed during the quarter, as we 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. The unprecedented positive energy at 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.”
Brandon Munro - Executive Chairman, Bannerman Energy Tweet