Bannerman Energy Ltd (ASX:BMN, OTCQX:BNNLF, NSX:BMN) is pleased to advise of significant further de-risking of its base-case 8 Mtpa Etango uranium development (Etango-8) in Namibia through the completion of the Front-End Engineering and Design (FEED) and Control Budget Estimate (CBE) processes.
KEY OUTCOMES
- Delivers strong reinforcement of overall quality of Etango-8 design, along with significant further de-risking of project development and execution profile.
- Improved estimation accuracy to +/-10% (from DFS +/-15%) through offers received from competitive tender for over 80% of the total Etango-8 capital costs.
- CBE pre-production capital forecast (US$353.5M) shows a modest 11.3% increase on the DFS estimate (inclusive of unchanged contingency) driven by:
- Design changes delivering operating cost benefits, improved operational resilience and increased certainty: +US$21.6M (+6.9%)
- Inflation offset by FX impacts: +US$14.5M (+4.4%).
- Minor change to operating cost forecast, with CBE life-of-mine All-in-Sustaining Cost (AISC) increasing by US$1.0/lb (+2.6%) from DFS estimate to US$39.09/lb U3O8.
- Detailed design work on Etango-8 underway, initially focussed on earthworks and civils.
- Early works construction of Etango access road and construction water pipelines proceeding well and on track for completion in July.
- Strategic finance and offtake marketing workstreams progressing in parallel.
- Advancing towards a targeted positive Final Investment Decision on Etango-8, market conditions permitting.
“The early development of our Etango-8 project is progressing well, with positive outcomes from the FEED and CBE processes. The FEED work has confirmed the high quality of the technical evaluation and design, as detailed in the December 2022 DFS. Finalising the CBE has demonstrated the robustness of the DFS cost estimates, evidenced by the lack of significant increases in forecast construction or operating costs. Additionally, the moderate increase in forecast pre-production capital is attributed to design enhancements that deliver cost efficiencies and reduce operating risks.”
The full announcement, including key Control Budget Estimate outcomes can be downloaded here.