Nuclear power reactors stand out at dusk. Source: Adobe Stock
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

Bannerman Energy (ASX:BMN) has completed a Scoping Study assessing potential expansion options for its flagship Etango Uranium project in Namibia.

The authors of the study ultimately looked at two routes to ‘expand’ the project – by increasing throughput capacity to 16Mtpa, or, by extending LOM from 15 years to 27 years.

The company’s given these two possible expansion methods their own names – “Etango-XP” and “Etango-XT” respectively.

The “XP” plan for Etango – a boost to throughput – would cost Bannerman US$325M and see a sustaining cost of US$42.5/lb.

The “XT” plan, meanwhile – increasing LOM – would have no capex requirements and would see the sustaining cost slightly higher at US$45.3/lb.

The company cited a potential 95.2Mlbs of ore being part of that plan but did not include any resource information in its scoping study release on Monday.

“In short, the long-term scalability of the world-class Etango resource remains highly robust under the base case Etango-8 approach to initial project development,” Bannerman Chief Executive Officer Gavin Chamberlain said of the proposed plans.

Executive Chair Brandon Munro made it clear that the company is eyeing higher uranium prices.

“What the Scoping Study emphatically evidences is the significant underlying value residing in Etango’s huge in-ground leverage to, and scalability with, higher uranium price outlooks,” Munro said.

Post-tax IRR remained largely the same across both scenarios.

BMN shares last traded at $3.16/sh.

BMN by the numbers
More From The Market Online
The Market Online Video

ASX Market Close: RBA keeps rates on hold amid sticky inflation | November 5, 2024

The Reserve Bank Board has kept interest rates on hold at 4.35% in line with consensus…
The Market Online Video

Timing will be everything for ‘smashing’ Hot Stock tip Judo Capital Holdings

Australian bank Judo Capital Holdings (ASX:JDO), best known for its finance and credit for small and medium-sized businesses, is
The Market Online Video

‘We’re looking’: Nickel-rich Indonesia sounds graphite warning to Aus producers

Nickel-rich Indonesia muscles in on Australian graphite producers as the Southeast Asian country expands into downstream…
Confused man

Aussie inflation seemingly hit a 3 year low. So why’s the ASX200 red?

Headline inflation in Australia has fallen to 2.8%, and that officially takes us into the RBA's…