Bannerman Energy Ltd (ASX: BMN, OTCQX: BNNLF, NSX: BMN) is pleased to report on the continued progress of its Etango Uranium Project (Etango) during the quarter, with significant developments across a range of key workstreams. The Company continues to target a positive Final Investment Decision (FID) on Etango during 2025, market conditions permitting.
HIGHLIGHTS
- Etango early works construction activities tracking in line with budget and schedule:
- Primary crusher site fully excavated.
- All construction power overhead infrastructure erected and transformer installed.
- Construction water supply in full operation; installation of site distribution infrastructure advancing well.
- Manufacture of key long lead item, High Pressure Grinding Rolls (HPGR) tertiary crusher, remains ahead of schedule.
- Draft permanent power supply and acid facility lease agreements received and under review.
- Financing and offtake discussions progressed across multiple counterparties, including conventional and strategic funding options.
- Strong quarter-end cash balance of A$68.8 million, with zero debt.
- Long-term uranium price outlook remains positive, closing the quarter at US$80/lb U3O8.
“Bannerman’s staged development of the Etango Project progressed well during the quarter, with the primary crusher site fully excavated, construction water and power infrastructure operational, and manufacture of the long-lead tertiary crusher advancing ahead of planned delivery. These activities are proceeding in parallel with financing and offtake marketing workstreams. The current dislocation between long-term fundamentals and current trading conditions in the global uranium market is a sharp one. As a result, and despite being at a highly advanced stage with respect to all key workstreams, we are not seeing the appropriate market conditions to warrant finalising offtake and financing arrangements with respect to development of Etango. However, we remain optimistic on the potential for a recovery in broader uranium trading conditions and suitable utility contracting appetite through H2 2025. Accordingly, we continue to target a positive FID on Etango during 2025, market conditions permitting of course. In the meantime, our strong balance sheet and gated approach to project development means that we can comfortably progress our early construction works program, putting ourselves in a stronger position to finalise suitable offtake and financing agreements when the time is right.”