Bannerman Energy Ltd

Good afternoon everyone and welcome to the Bannerman Energy quarterly webinar update for the September 2025 quarter. For those of you that don't know me, I'm Emma Culver, Investor Relations Manager at Bannerman Energy and I'm pleased that many of you were able to join us today for for the update. We're joined today by Executive Chairman Brandon Munro, who many of you know or would have seen online. And Brandon will provide a short update on Bannerman, the progress at Otango in this last quarter. And following that, we will have some time for Q&A. At the bottom of your screen, for those of you that aren't familiar with Zoom, there is a tab that says Q&A. Please write your questions in there. And at the end, we will be able to get through them. Yeah, just in a timely manner. So if you can pop them in there, that would be greatly appreciated. Before I bring Brandon on. I will just bring up our slides for the presentation. Just bear with me for one moment as I get these loaded up. Okay, here we go. Perfect. I'm just going to share these here. Great. So Brandon, welcome to the webinar. Thank you for joining us. There has been a lot happening at Otango in the last quarter. You were on site this quarter. You got out to Namibia, so I'm sure you were pleased with the progress that you saw. And then there's been a lot happened in the sector as well. So I'm sure everyone is excited to hear from you, especially as we've had a bit of a run this week in equities. Thanks, Brandon.

Thanks, Em. And look, thanks very much to everyone for joining us. Another exciting quarter for Bannerman. And yes, I was on site in August and it was just fantastic to see the progress with my own eyes. So it's been an excellent quarter. If we just touch on the highlights for this quarter, as we've put out in the quarterly update, we start as mining companies often do with safety, but I just want to put a line under this. 16 years lost time injury free at a tango. That's an extraordinary achievement. So the people who are on this call who've got a background in mining, you'll understand quite readily the exceptional amount of discipline and crafting of a safety culture that's required to ensure that you can, as a company and as a project and a team, actually achieve such a longstanding record. And sure, we weren't hard at it all of that time. There were periods of time where there wasn't a lot of activity, but we do have a lot of activity at the moment. So we've just notched up a million man hours, lost time injury free. That's a big achievement. But for the investors on the call who perhaps don't have their own operational background in mining, what you need to take away from that is Bannerman has a very sophisticated approach to risk management. Now, health and safety is a very important part of risk in its own right, but it also goes to how we manage a whole variety of risks in this company. And the team is absolutely outstanding in Namibia. And as the chairman of the company, I feel enormously proud to be able to talk to you about that milestone that we've achieved, clocked over yet another year, lost time injury-free, and now a million man hours lost time injury-free. Now, we're also pleased to say that the early works construction is proceeding on time, on budget, those two magic words that every project developer and investor wants to hear. And again, in terms of confidence in what we're set out to do here, we're managing with Gavin Chamberlain's leadership, the execution risk very, very well. We've got the benefit of having these early works construction activities where we can, if you like, really get match fit ahead of the much more extensive work that will be on site shortly. So we've had about 120 contractors on site. That's shortly about to grow to 400 contractors. And so it's so pleasing as a board member and as a shareholder to see that the team is functioning very, very well. We've got that management of risk management budget and schedule all under control before we start expanding this onsite contractor workforce. We've also detailed in the quarterly how the progress on detailed design is going. We've got 70 or so engineers in Joburg, an entire floor of Wood PLC's office there, working away on a full-time basis on this detailed design, as well as our own owners, people sitting in that office on that floor, keeping an eye on them. A lot of our corporate strategy has been optimising corporate flexibility as we wait for this uranium market to improve. And this approach is consistent with that. There's maybe a couple of dozen employees in the company against moving to 400 contractors on site and 70 or so engineers in Johannesburg. So there's a lot of activity going on, but we've taken the sensible corporate decision of ensuring that that's mainly a contractor workforce at this point. Big announcement for us during the quarter was signing our initial offtake agreements. We can talk some more about that, I'm sure, in question time. But the key point here is this is a small proportion of our product. It's between 5% and 6% of our planned production. But what it does is it establishes our credibility and gives us very strong external validation in the broader nuclear sector, and particularly with our future customers. This is a conservative industry. This is an industry that... to want to see things in front of them with their own eyes before they make decisions. And the fact that we've got two of the very largest, very most important and most respected US utilities, and for that matter, private utilities in the world, who've contracted with us, who've proceeded through all of the external consultant due diligence, who've had site visits, who've been through the whole process from initially agreeing basic terms to working through all of the nitty gritty and legalities required to be able to sign one of these final form contracts. That positions this company and our project exceptionally well. So I think as a shareholder, I know that some shareholders have got concerns about that it's early in the cycle. And that's true. It is early in the cycle, but it's only five or so percent of our production that is locked in at these prices. And that becomes such an issue. enabler for us in so many other ways with this project including what I mentioned as well as making additional contracting as we see the market conditions improve so much easier and putting us in such a much stronger negotiating position by virtue of the fact that we have signed some initial contracts. Now, really strong cash balance. So I hope as investors, what you're taking from this is our fiscal discipline. So we started the quarter with about 140 million Australian in cash. We've got 112 million of that still in our cash. And of course, we deployed 13 million towards buying spot units, which we now disclose as liquid assets. So really strong discipline. We're not letting that big cash balance burn a hole in our pocket. Almost the entirety of that is going into productive use in the company, going into the ground, going into these early works activities. So we're being very disciplined about that and the way that we deploy our cash and maintaining a very, very strong balance sheet to optimise that corporate flexibility that I talked about. Now, of that $111 million in cash, we've now progressed commitments in the early works construction to the tune of about $50 million. so we're committed to that work we're happy with that work it's enabled us to lock in attractive prices and get the right contractors and ensure that the construction is moving the early works construction is moving forward but as you can see that still gives us a very large cash buffer and that is what gives us the level of corporate flexibility that's so important as this market starts to really turn and improve then finally talking of the market We've now seen two changes to the term contract price in the last several months. So it's now moved from $80 a pound to $84 a pound. That might not sound like a lot, but if you plug that number into our NPV, we're talking about a plus 15% increase in our NPV. across the different Tango A to Tango XT and Tango XP scenarios. So even because of the extraordinary leverage that Bannerman delivers, that 4% growth in the term contract price has now increased our NPV by more than 15%. But that's not, in our opinion, the end of the term contract price growth. We're expecting this market to really improve over the coming months. And by signing a couple of small commitments via top tier one utilities, we're really well positioned to take advantage as we see that term contract price and other market conditions continue to improve. So let's show you what we have been doing on site. What you're looking at there is the heap leach ponds. It's hard to give a full appreciation of the scale of this project. So let me explain it to you in the way that I experienced this when I was on site in August. So the heap leach pads There's 10 pads that are each roughly 300 metres long by 100 metres wide. So this is an area that needs to be very, very flat, very carefully engineered that is 300 metres by a kilometre. And the gradient from one end of that 300 metre side to the other falls by only several percent and that's just to get a very gentle drainage from one end to the other so the civil works and the civil engineering that's going on at the moment on site is actually very precise it's all done with lasers and the contractors are doing an excellent job i share that with you just because of the pure scale of what is being undertaken at the moment so moving on to the next slide we've now got full power on site The power infrastructure on site will also serve us for obviously construction, but also into operations. When we move from construction to operation, we will need to upgrade the off-site power, but everything that we've got now is going to service for decades to come. And that puts us in a really strong position. And with the site power now being fully operational, that's the completion of all of the pre-construction infrastructure that we needed to do. What you're looking at here is a primary crusher box cut. So we decided during the feed process, front engineering and design, that we could optimize the crusher by semi-sinking it. Now, what I mean by that is we look at having a crusher on surface, and it would stand roughly 10 metres high. We looked at submerging it, which has extra civil works, but means that there's less of a gradient for all of the haul trucks to drive. And we optimised the NPV by deciding to submerge it by five metres. So half sinking it and less diesel, less turnaround time. And the point where the CapEx associated with what you can see on the screen demonstrably improved the OpEx and was a very effective trade-off. We've now awarded the phase one concrete works and you can see from that 3D design that that's what it will look like. You can see big retaining walls there as well as the concrete works that'll install the primary crusher when we're ready for that phase. Now the expensive part of this is the kit. We don't need to order the kit yet. We don't need to order that primary crusher. They're readily available. They're a very standard size. But it is quite time consuming to get the concrete work and all of the civils done. And so hence why we've moved this aspect of the project forward and we continue with these less capital intensive civil bulk earthworks to ensure that when we're ready to place the order on the primary and secondary crusher, everything's ready for the delivery of those pieces of equipment. Now, this is where the tertiary crusher will be installed. And you can see from the insets, that's the 3D design. And that photograph is a real live example of the HPGR that is currently being packaged for delivery to Namibia. When we looked at the long lead items, we undertook a risk assessment to understand what do we need to lock in now to reduce the risk that supply might not be available or we could head into some huge mining bubble or there could be a huge amount of activity or lack of supply availability in Southern Africa. Fairly standard when it comes to construction, but for investors out there, we wanted to know what we needed to lock down now so that we wouldn't get bitten later by supply constraints. As I said, the primary and secondary crusher are relatively off the shelf. They're a very standard size. They're readily available at short notice. The tertiary crusher that you can see there is a more sophisticated piece of kit. And so we took the decision that in some circumstances we might have to wait for that and we don't want that to become a bottleneck. So we placed that order last year and Gavin and the team went up to the factory in Germany to do all of the factory acceptance testing and make sure that everything was perfect as we needed it. And that is now being on its way to being put on the sea to be delivered to Walfish Bay. And then you can just see yet another shot of some of the bulk earthworks. And hopefully you'll stick around for the flyover or access it via YouTube to get a full appreciation of what's happening on site. So, Emma, let's go to Q&A. We've got plenty of time for the various questions that are coming up.

Yeah, thanks, Brandon. So we'll jump straight into it. The timing of the spend for the early works commitments of $49.2 million. What is that? And does the 31.5 mil on the early works and the 49.2 of commitments come off the total capex? Or is this in addition?