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Corporate UpdateAustralian Uranium ConferenceFremantle, Western Australia
19 July 2012
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Technical Disclosures andForward-Looking Disclaimers
This presentation should be read in conjunction with the release by Bannerman Resources Limited dated 10 April 2012 and entitled Bannerman Reports PositiveDFS Results and Milestone Agreement with Namibian State-Owned Mining Company.
Certain disclosures in this presentation, including management's assessment of Bannerman Resources Ltds plans and projects, constitute forward-lookingstatements that are subject to numerous risks, uncertainties and other factors relating to Bannermans operation as a mineral development company that may causefuture results to differ materially from those expressed or implied in such forward-looking statements. The following are important factors that could cause theCompany's actual results to differ materially from those expressed or implied by such forward looking statements: fluctuations in uranium prices and currencyexchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital andoperating costs, recovery rates, production estimates and estimated economic return; general market conditions; the uncertainty of future profitability; and theuncertainty of access to additional capital. Full descriptions of these risks can be found in the Companys various statutory reports, including its Annual InformationForm available on the SEDAR website, sedar.com. Readers are cautioned not to place undue reliance on forward-looking statements. Bannerman Resources Ltdexpressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Mineral resources that are not ore reserves do not have demonstrated economic viability.
The information in this presentation that relates to the exploration results of the projects owned by Bannerman is based on information compiled by Mr MartinusPrinsloo, Exploration Superintendent of Bannerman. Mr Prinsloo is a Member and a Chartered Professional of the Australasian Institute of Mining and Metallurgy, aRecognised Professional Organisation by the Australasian Joint Ore Reserves Committee, who has sufficient experience relevant to the style of mineralisation andtypes of deposits under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2004 Edition of theAustralasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and as a Qualified Person for purposes of National Instrument43-101 of the Canadian Securities Administrators. Mr Prinsloo consents to the inclusion in this presentation of the matters based on his information in the form andcontext in which it appears.
The information in this presentation relating to the Mineral Resources of the Etango Project is based on a resource estimate compiled or reviewed by Mr Brian Wolfe,
a full time employee of Coffey Mining Pty Ltd. Mr Wolfe is a Member of the Australian Institute of Geoscientists and has sufficient experience relevant to the style ofmineralisation and types of deposits under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2004 Editionof the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, and is an independent consultant to Bannerman and aQualified Person as defined by Canadian National Instrument 43-101. Mr Wolfe consents, and provides corporate consent for Coffey Mining Pty Ltd, to the inclusionin this presentation of the matters based on his information in the form and context in which it appears.
The information in this presentation relating to the Ore Reserves of the Etango Project is based on information compiled or reviewed by Mr Harry Warries, a full timeemployee of Coffey Mining Pty Ltd. Mr Warries is a Fellow of The Australasian Institute of Mining and Metallurgy and has sufficient experience relevant to the style ofmineralisation and types of deposits under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2004 Editionof the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, and is an independent consultant to Bannerman and aQualified Person as defined by Canadian National Instrument 43-101. Mr Warries consents, and provides corporate consent for Coffey Mining Pty Ltd, to theinclusion in this presentation of the matters based on his information in the form and context in which it appears.
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Contents
3
Resource definition (core) drilling
at the Etango site.
1. Investment Rationale2. Recent Developments3. Etango Uranium Project4. Upside Opportunities5. 2012 Action Plan
6. Summary
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Price source: Ux Consulting.
Upward Uranium Price Trend
Etango RC drilling4
1. Investment Rationale
Etango breakeven point (~US$61/lb)
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Demand - Strong New Reactor Build Outlook
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Source: WNA May 2012
433 reactors operatingin 30 countries,
63 under construction,489 planned and proposed.
China has stated its intention toincrease from 12 GWe today to
60-70 GWe by 2020*.
India has recently reiterated itsplan to increase nuclear capacity
14-fold to
63 GWe by 2032.
*Source: The National Energy Administration ofChina, and various broker and press reports.
# reactors
1. Investment Rationale
0
20
40
60
80
100
120
140
160
180
200
220
Canada United
Kingdom
South
Korea
Ukraine France Japan India Russia USA China
Proposed
Planned
Under Construction
Operating Reactors
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Supply - Development Incentive Pricing
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1. Investment Rationale
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Erongo Uranium Province, NamibiaExtensive uranium inventory and nearby infrastructure
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1. Investment Rationale
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Erongo RegionTrade hub of Namibia
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1. Investment Rationale
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Etango Uranium Project Definitive Feasibility Study (DFS) Completed on time and within budget.
Demonstrates Etango to be a viable global top 10 pure uranium project.
80% conversion of M&I Resources to Ore Reserves (119Mlbs U3O8) for minimum 16 year mine life.
Environmental approval just received.
Facilitates further engagement with potential development partners.
Recent Developments
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2. Recent Developments
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Conditional binding Term Sheet.
Initial 5% interest and an
additional 5% option in the EtangoProject, based on market value.
Initial 5% delivers Bannermanapprox A$3 million cash.
Epangelo to fund its share offuture Etango Project expenditure.
Recent Developments
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Partnership with Namibian State-Owned Mining Company
Continues to build positiverelationship with the Namibian
Government and enhances theattraction of Etango for potentialdevelopment partners.
2. Recent Developments
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Etango Site Layout
N
Licence boundary
5km
16 year mine life & extensionopportunities.
Produce 6-9 Mlbs U3O8 per year.
Ore Reserve 119 Mlbs U3
O8
Capex US$870 million.
Opex 1st five years US$41/lb U3O8.
32% operating margin at current
U3O8 long term contract price.
Key Features
3. Etango Uranium Project
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Bulk Open Pit Mining Operation
YEAR 16
Years 1-5 mining fleet: 32 haul trucks 15 drills 6 excavators 6 graders 6 bulldozers
1.2 billiontonnes (ore andwaste) minedover 16 years
1km
6km
3. Etango Uranium Project
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Conventional On-Off Heap Leach Operation
3. Etango Uranium Project
4 U id O i i
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Resource Expansion Potential
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4. Upside Opportunities
Dec 2011
4 U id O t iti
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Increased Resource Utilisation
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Ondjamba Deposit(Inferred resource)
Hyena Deposit(Inferred resource)
Etango Deposit
Open at depth
Resource zonesoutside pit design
1km
Total U3O8Mineral Resource comprises 149Mlbs M&I and 64Mlbs Inferred
4. Upside Opportunities
4 U id O t iti
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Resource Expansion Potential
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4. Upside Opportunities
5km
N
Etango Project Area
Existing Etango resource(149Mlbs M&I and 64Mlbs Inferred)
Etango DeepsTarget (red)
Etango West
Target (blue)
Etango SouthTarget (green)
Ondjamba/HyenaAlready drilled (yellow)Additional target (green)
OmpoAlready drilled (yellow)Additional target (green)
First stage drillingcompleted, resultspending.
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2012 Action PlanTo position Etango to capture value from rising uranium prices
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Prudent cash management.
Finalise and complete the Epangelo transaction.
Step up engagement with potential development partners.
Pursue Etango licencing.
5. Action Plan
6 S
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Positioned for investment re-rating
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Source: Various broker research, Bannerman, July2012
$0.45$0.80
$0.40
$2.35
$4.40
-
US$0.50
US$1.00
US$1.50
US$2.00
US$2.50
US$3.00
US$3.50
US$4.00
US$4.50
US$5.00
Listed uranium companies - Enterprise values (US$)per attributable U3O8 resource pound
Exploration Pre-Feasibility Feasibility Developer Producer
Bannerman at US$0.20/lb
6. Summary
6 S
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Bannerman in Summary
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6. Summary
Completed DFS.
Premier uranium location - Namibia.
Scale annual production and mine life.
Technical simplicity.
Resource expansion potential.
Environmental approval received.
Substantial investment leverage to positive uranium fundamentals.
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www.bannermanresources.comScale, Simplicity, Substance
APPENDIX
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Corporate SnapshotAs at July 17, 2012
Share price A$0.12
Shares - currently on issue 302M
Shares - fully diluted (for options, rights, existing convertible note & contingent issues) 355 M
Market capitalisation (undiluted) A$36M / US$37M
Average daily traded volume in last 12 months ~1.0M shares/day
Cash on hand (as at March 31, 2012) A$13.2 million
Project ownership: 80% of the Etango Uranium Project, Namibia.
Institutional ownership ~31%
Board/management ~13%
North America
Australia
Europe
Namibia
Asia
Shareholder distribution
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APPENDIX
APPENDIX
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NamibiaPremier uranium mining jurisdiction
WindhoekSwakopmundWalvis Bay
Stable democratic government.
5th largest uranium producingcountry ambitions to grow.
Political and social supportof uranium mining.
35 years of uranium mining Rio Tinto, Paladin & Areva.
Etango
UraniumProject
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APPENDIX
APPENDIX
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Early Learner Assistance Programin local schools
Pioneered cooperation withtourism bodies including the
Coastal Tourism Association ofNamibia
Radiation safety initiatives,
including the first RadiationManagement Plan
Environmental rehabilitationof all drill sites
Making a Real Difference
Assistance with the creation, growthand training of local businesses
Support of the ErongoDevelopment Foundation Co-sponsor of the annualHospitality Association of Namibiaconference
Training andeducation initiatives
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APPENDIX
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DFS Highlights
Mine life Minimum 16 years with defined extension opportunities
Mining & processing Conventional open pit mining; three-stage crushing; heap leaching, SX
Waste/ore strip ratio 3.3 : 1
Plant throughput 20 million tonnes of ore per year
Production (annual) 7-9 Mlbs U3O8per year in first five years, thereafter6-8 Mlbs U3O8/year
Production (life of mine) 104 Mlbs U3O8with defined extension opportunities
Pre-production capital cost US$870 million
Sustaining capital Funded from operating cashflow - US$381 over the life of mine
Operating cost US$41/lb in years 1-5; US$46/lb U3O8 over the life of mine
Operating margin 32% for years 1-5 at current LT contract price of US$60/lb U3O846% for years 1-5 at base case price of US$75/lb U3O8
Payback (post-production) 6 years
Breakeven uranium price US$61/lb U3O8(to cover all opex and capex)
APPENDIX
APPENDIX
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Conventional Process Flowsheet
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APPENDIX
APPENDIX
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Etango DFS Pre-Production Capital Costs
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APPENDIX
DFS Pre-Production Capital Cost Estimate (April 2012)US$
millionMining fleet, establishment & pre-stripping 127
Process plant 354
Site infrastructure 91
External infrastructure (power, water, rail, road and port) 47
EPCM costs 72
Accuracy provision 54
First fills and spares 29
Owners costs (personnel, housing, training, insurance etc) 40
Other (camp facilities, mobilisation and demobilisation andtemporary services)
56
Total pre-production capital expenditure 870
APPENDIX
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APPENDIX
DFS Cash Operating Cost Estimate (April 2012)First 5Years
Life-of-Mine
Mining:- US$/tonne mined- US$/tonne ore
1.727.87
1.978.55
Processing (US$/tonne ore):Consumables, labour, maintenance & other 3.37 3.41
Sulphuric acid 1.78 1.79Power 1.29 1.31Water 0.64 0.65
7.08 7.15
General & administration ( US$/tonne ore): 1.26 1.23
Total cash operating costs (US$/tonne ore) 16.21 16.93
Total cash operating costs (US$/lb U3O8 produced) 40.85 45.71
Etango DFS Cash Operating Costs