Bannerman Energy Ltd

Good afternoon everyone and welcome to the Bannerman Energy March 2026 quarterly update webinar. We've just got a few people dropping in but we'd like to thank you all for joining us today. We are joined by our MD and CEO Gavin Chamberlain today for the webinar and for this update in what has been a very transformational quarter for us at the company. So I'm going to share my screen. and hand over to Gavin so we can go through all of the highlights for the quarter. Assume you can all see that, Gavin? You've got that coming through?

Yeah, no problem. Thanks, Emma. Morning all and welcome to this quarterly update. It really has been a transformational quarter for us as Emma said. So we've seen the successful conclusion of a really important deal for ourselves. We've spent the last two years going through a strategic funding process and this year we saw the successful conclusion of a strategic financing deal. The deal with CLNC Overseas Limited sees them putting in an investment of up to $321.5 million. And that's broken up into two different numbers. The one number is a straight payment of $294.5 million. which is for them to buy their 45% share, and then they will also reimburse the current capital work that is ongoing on site from the 1st of July until the completion of the deal. And the combination of those two aspects gives us the $321.5 million. For that, they will get a 45% interest in Bannerman UK subsidiary, which in turn owns 95% of the Otango project. The completion is basically targeted for mid-2026 with the FID following shortly thereafter. And while this is all going on, the capital work on site is continuing in line with the project schedule and allows us to continue along the track of actually getting to final completion and commissioning of the plant in September of 2028. A couple of points around the deal and the reason why we found the deal so attractive is it effectively puts us into a debt-free construction for the Itanga mine. This is obviously a pathway that delivers the best financial and offtake flexibility, used risk. So knowing that our construction is funded, it allows us the luxury of being able to look at our offtake contracting very carefully in the future. And the second part of the deal, and almost the cherry on top, was the aspect of the offtake contract to be signed for CNNOL, which is effectively they will purchase 60% of the Tango production, granting us significant flexibility, as I said, in terms of being able to place the remaining 40%, which remains ring-fenced and totally under the control of Panamera Energy. But over and above that is the long-term strategic partnership with CNNC I think has unseen value in terms of just their Tango project, but the growing of Manaman Energy's footprint worldwide. Just in terms of quarterly highlights around the financial situation, we've continued with our financial rigour and control of capital expenditure, which has allowed us to have a cash balance in the bank at the end of the quarter of 69.9 million Australian and liquid assets in addition to that of 12.7 million. We've only committed an additional 31.1 million Australian dollars and that is well covered by the cash in the bank. As a matter of interest, our spend today from the project is $53.6 million, and in the quarter we spent just on $16 million on project execution. Most importantly for this quarter, we've seen a $6 increase in terms of the long-term price for uranium. This is significant, I think, in terms of the long-term price being generally the best reflection of where the market's tending to move to, and a $6 increase in a quarter is significant. So this supports our theory that we certainly will be seeing an improved uranium price moving forward. On the project side, we've continued with our progress. We've been extremely happy with the way the project and the contract has moved forward. We're now sitting at just 560 people on site, and we've actually achieved 500,000 LTI hours on the project alone since we started construction. And this obviously adds to the fact that we've already achieved 16 years LTI through the record, and the four Namibian contractors are performing on site. The quality of work and the safety control that they've put into place is phenomenal and really a first world exercise by the Namibian contractors and the team supervising them. So I would like to personally thank the team once again for delivering an excellent quarter safely, online, at least on time and on budget. So what am I talking about is we have the bulk efforts contract which is about 66% complete And what you see in front of you is the commencement of the platform for the wet plant construction. And to the left-hand side, you can just see the edge of the actual HDP edge pad. The other contract which is progressing really well is we are drilling and blasting our own drainage material on site and we're crushing that and forming the stockpile so once the heap leach pad is completed we'll be able to place the drainage layer on top of the the leach pad and complete the construction this is going is running on track and is about 27 percent complete to date i think most pleasingly has been the concrete contractor on site we're now getting into serious construction work and As you can see, the concrete work has progressed significantly over the quarter, and I was actually on site yesterday, and this construction is now above ground level, so we're really pleased with the way that the contractor is working. He has really designated and divided his site into really safe working areas, and has made exceptional progress on the primary crushing building, which is the biggest concrete structure on the site. The secondary and tertiary screening building is also now out of the ground and the columns are completed to the first level and also once again tracking according to schedule. And finally, the other big bit of concrete work is the stockpile tunnel, where the walls have now been completed, and they're in preparation now for the roof pour, which will be the biggest pour poured by any Namibian contractor in Namibia ever, which is just over 1,600 cubic metres of concrete in one pour. So they're busy preparing for that pour at the moment. And then the last contractor is the installation of the permanent water supply pipeline, which is 70% complete and moving ahead according to schedule. And this effectively runs from the base station at Swakopmund across the National Road to the first pump station. And that, ladies and gentlemen, is basically the completion of the Portly highlights and I'm quite happy to take questions and Emma, if you have any, please... Yeah, thanks, Gavin.

So for everyone on the call, there is a Q&A button at the bottom of Zoom. Please type your questions in there and we will get into them. Gavin... My first question, I guess, and I think that there'll be a lot of people wanting to know about this, is the big question of diesel. It's not something that we're completely immune to. Obviously, we have a bulk earthworks contract happening on site with a lot of trucks going around. Can you just speak to diesel, how it affects us in these early works, how it's going to affect us going into full-volume construction and where we're at with that?