Bannerman Energy Advances Etango Project, Secures Key Offtake Deals, Euroz Hartleys Says

MT Newswires Live
Oct 17

Bannerman Energy (ASX:BMN) reports strong progress at the Etango project in the September quarter, with early works on track and key offtake deals signed, reflecting its leveraged exposure to rising uranium prices and favorable sector dynamics, Euroz Hartleys said in a Friday note.

Early works at Etango are reported to be on schedule and on budget, with key milestones including power commissioning, 86% completion of dry plant engineering, and factory acceptance of the tertiary crusher, eliminating a major bottleneck.

Additionally, the company reported a closing cash balance of AU$112 million and commitments of AU$49 million at the end of the September quarter, securing funding for 12 months of early works activity.

The firm shared that the company has secured two binding offtake deals with top North American utilities for 1 million pounds of uranium oxide from Etango, covering 4% of production and advancing its market-linked pricing strategy.

The firm views the uranium sector as exceptionally strong, with rising prices, increased Sprott Physical Uranium Trust purchases, and potential US government support boosting the company's leveraged exposure at Etango.

Euroz Hartleys has maintained its speculative buy recommendation on Bannerman Energy, with the price target of AU$5 per share.

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