The Energy Report

Bannerman Resources Ltd. TICKER: BAN:TSX; BMN:ASX Visit Company Website Bannerman Resources is a uranium explorer and developer focused on developing the Etango project in Namibia. It holds one of the largest land positions in Namibia's highly prospective Alaskite Corridor. M&I resources at Etango are 149 Mlb. U3O8 plus Inferred resources of 64 Mlb. U3O8. Based on feasibility study estimates, Etango is expected to produce an average of 5–7 Mlb. U3O8/yr. over a +20-year mine life. Extensive 2010 work has derisked the technical aspects of the project substantially.

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Analysis

Edward Sterck, BMO Capital Markets (1/24/12) "Bannerman Resources Ltd. announced results of drilling at the Onkelo West prospect, which is contiguous with the northwest boundary of the company's Etango project. Bannerman intersected mineralization at all eight drill holes. . .the intercepts primarily range between 83 ppm and 193 ppm U3O8 over intervals of 10–54m. . .results also showed small, high-grade intervals of 3m at 426 ppm U3O8 and 2m at 262 ppm U3O8. . .the mineralization may represent down-dip extensions to the previously defined uranium bearing structures."

The Energy Report Interview with Edward Sterck (1/19/12) "Bannerman Resources Ltd. is focused on trying to push ahead with its feasibility study; proving up the economics of the project and adding shareholder value before really considering any M&A proposals. Increasing the economic appeal of the project could potentially achieve a higher price for the company when it comes to [M&A] discussions. . .right now, the company is lining up all of the economics of the project—the mine plan, the plant design and the processing metallurgy. If uranium prices increase to a level where the project makes economic sense, it will have everything in place to put the mine into production." More >

The Energy Report Interview with David Talbot (12/13/11) "The Asian utilities are going to go out of their way to either purchase uranium in the markets through long-term contracts, but probably and most importantly, buy some of those large uranium mines around the world. . .The Chinese were even looking at Bannerman Resources Ltd."

The Energy Report Interview with Geordie Mark (11/15/11) TER: China's Sichuan Hanlong Group made highly conditional proposal to acquire Bannerman, but Bannerman recently announced it must do further due diligence before committing to the financing. Is this an indication that Bannerman needs to continue to derisk Etango or that Hanlong simply wants Etango at a steep discount?

Geordie Mark: Hanlong's proposal was at quite a low enterprise value per pound rating, much less than $1/lb. That was already a fairly substantial discount to other acquisition metrics in the space. For instance, Hathor and Mantra Resources were north of $9/lb. Bannerman's management and board were talking to many parties subsequent to Hanlong's proposal. Bannerman's board considered it to be a low offer for the company. Time will tell. . .There is a lot of interest out there in the sector for advanced projects.

The Energy Report Interview with Steve Palmer (10/18/11) "China's Sichuan Hanlong Group is in takeover talks with Bannerman Resources Ltd., which owns two uranium development projects in Namibia." More >

• Corporate Presentation (8/22/11)

Back to Top