Mid-cap uranium developer Bannerman Energy has delayed a potential final investment decision at its Etango project in Namibia until next year.
Mid-cap uranium developer Bannerman Energy has delayed a potential final investment decision at its Etango project in Namibia until next year.
Initially targeting a positive FID during the second half of 2024 – articulated during its recent June 2024 quarterly report – Gavin Chamberlain-led Bannerman told the market on Wednesday its position regarding offtake contracting required patience.
“Bannerman’s well-established position with respect to offtake marketing is that it will preserve the long-term underlying value of Etango by only committing to contracting its planned uranium output on price and other terms that are considered representative of long-term market fundamentals and producer opportunity,” the company said.
“Although the market is developing positively, current term contract conditions have not yet fully aligned with these criteria.
“A natural extension of Bannerman’s position to offtake contracting is the necessary degree of patience required to maximising the leverage of Etango to long-term uranium market fundamentals.
“The exercising of this patience means that Bannerman has elected to expand its projected window for a targeted positive FID on Etango into 2025.”
Despite its project window being extended, Mr Chamberlain said he was encouraged with progress of Etango’s early development works program.
On June 28, Subiaco-based Bannerman tapped investors for $85 million, issuing around 25.8 million new fully paid ordinary shares at $3.30 apiece.
Mr Chamberlain said the equity raise had helped enhance the project’s long lead order and awarding of critical path contracts.
“The Etango financing progress is also advancing, comparing a broader range of conventional and strategic funding opportunities that reflect growing interest in long-term uranium supply,” he said.
“With our current robust cash balance, we can take the appropriate time in this area to ensure the optimal overall funding mix is delivered – a key differentiating feature compared to many developers.
“I am also pleased to see long term contract markets firming further over the last few months.
“While the market continues to come to us in this sense, it is also an excellent reminder that the judicious exercise of patience can bring its rewards.”
The uranium spot price – which reached a high of $US106.25 per pound earlier this year – has recently recovered following a cooling period.
In June, shares in Western Australian uranium companies also rose following news out of the US that president Joe Biden had signed into law the Prohibiting Russian Uranium Imports Act, which will come into effect from 2028.
As of 1.10pm WST, Bannerman shares were down 3 per cent to $2.91.
Much like the majority of the uranium sector, it enjoyed strong gains less 24 hours earlier – closing trade at $3.01 on the back of news that the Constellation Energy Corporation would reopen the Three Mile Island nuclear reactor in Pennsylvania, in order to power Microsoft’s AI operations.
