Bannerman confident about market conditions
Geared for production
The company has concluded the first phase of early works on the Etango project, including building an access road and water supply infrastructure.
Bannerman Energy says it is progressing towards a final investment decision on the Etango uranium project in Namibia, with a strong cash position and favourable market conditions.The company has concluded, on time and within budget, the first phase of early works on the project, including building an access road and water supply infrastructure, it said.
The Australian company has already ordered a tertiary crusher and is advancing design work on a processing plant.
In the quarter ended 30 September, Bannerman completed an A$85-million two-tranche equity placement, as well as progressed offtake marketing workstreams.
The company’s cash balance of A$95.7-million and zero debt puts it in a strong position to advance project development in phases, while the uranium price averaged strongly at US$82 per pound at the end of the quarter, which provides Bannerman with a positive market outlook.
“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,” chairperson Brandon Munro said.
He added that the unprecedented positive energy at World Nuclear Association’s yearly symposium in September reflected 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.”
-MINING WEEKLY