Bannerman Energy Limited (ASX: BMN) has released an updated Definitive Feasibility Study (DFS) for its Etango-8 Uranium Project in Namibia. Bannerman Energy is focused on the development of the Etango-8 Uranium Project and is committed to becoming a reliable supplier of uranium to the global nuclear industry. The updated DFS incorporates recent resource upgrades, improved process designs, and updated cost estimates, resulting in significantly enhanced project economics.
The updated DFS highlights a pre-tax Net Present Value (NPV8) of US$1.58 billion and a post-tax NPV8 of US$1.07 billion, utilizing a uranium price of US$75 per pound. The Internal Rate of Return (IRR) stands at 27.6% pre-tax and 22.9% post-tax. Initial capital expenditure is estimated at US$374 million, with a payback period of 3.3 years from the start of production. The study envisions an average annual production of 3.4 million pounds of U3O8 over a 15-year mine life.
Managing Director and CEO, Mark Hohnen, commented that the updated DFS confirms Etango-8 as one of the world’s best undeveloped uranium projects. He noted the substantial improvement in project economics, driven by increased production capacity and optimized processing techniques. The company is now positioned to make a final investment decision, paving the way for project development.
Bannerman has completed key workstreams including infill drilling, pit design, and updated metallurgical test work, all of which have contributed to the robust outcomes of the updated DFS. The Company anticipates that the enhanced economics and strategic positioning of Etango-8 will attract further interest as it moves towards development.
