Bannerman Energy Ltd says all key workstreams at the Etango project remain on track for a targeted positive Final Investment Decision (FID) during the next six to 12 months, provided that market conditions, including the continued strengthening of price and offtake terms to sufficiently incentivising levels, permit.
The company’s September 2025 quarter report says early works construction advances are on schedule and budget and uranium market fundamentals remain strong.
It says the construction power is live following the 33 kV reticulation, and the first three mini-substations that have been commissioned, enabling the site to operate on Erongo Red grid power.
Bulk earthworks, awarded in August 2024 as a 24-month package, are about 42% complete, with heap-leach pad construction advancing and excavation of process solution ponds underway.
The site access road, including the widened C28 intersection, is complete.
Drainage preparation on the heap-leach pad moved forward after Bannerman placed Phase 1 and 2 blasting contracts with local contractor Tulela Mining & Construction. Crews were onboarded, and the first blast took place on 26 September 2025.
The first crusher for aggregate used in the drainage layer has also arrived on site.
Long-lead items and detailed design are progressing well. The factory acceptance test of the High-Pressure Grinding Rolls tertiary crusher was completed at Köppern’s Hattingen works in Germany, and packaging for transport has begun.
Detailed engineering, led by Wood Group, has the dry plant about 86% complete, with concrete drawings for the primary crusher, stockpile tunnel, and secondary/tertiary areas issued. The wet plant is 22% complete as procurement packages go to market for certified vendor data.
The Phase 1 concrete contract for the primary crusher structure has been awarded to K. Neumayer Civil Contractors of Namibia, which is now establishing on-site.
Off-site utilities have also advanced. The permanent power supply agreement with NamPower is fully executed, and the utility has appointed a project manager to design and build an additional feeder bay at the Kuiseb substation.
Bannerman signed the infrastructure development agreement for the water pipeline from NamWater’s base station to Etango, and the water supply agreement is expected to be finalised soon. Phase 1 of the permanent water line will start during the December quarter.
For reagents, the Walvis Bay acid storage and handling facility, leased from Namport, holds an Environmental Clearance Certificate granted on 25 June 2025. Detailed design and supervision by Windhoek Consulting Engineers began in October.
Commercially, Bannerman signed two initial offtake contracts with Tier-1 North American generation companies covering one million pounds of uranium over 2029 to 2033. Both are base-price contracts with escalation linked to the US GDP-IPD index from delivery start and include a 10% annual flex option.
The agreements, approved by Namibia’s Ministry of Mines and Energy, provide delivery flexibility ahead of FID and strengthen Etango’s standing as a credible new supply source.
Bannerman ended the quarter with cash of about A$111.8 million (approximately N$1.33 billion) and liquid assets of A$13.1 million (N$155.8 million), mainly in Sprott Physical Uranium Trust units.
Early works spending to date amounts to A$31.5 million (N$374 million), and outstanding commitments total A$49.2 million (N$585 million).
The company is debt-free apart from normal creditor balances and completed an A$85 million (N$1.01 billion) equity placement that settled on 2 July 2025.
Bannerman says all key workstreams remain on track for a targeted positive FID during the next six to twelve months, market conditions permitting.
Bannerman Executive Chairman Brandon Munro said the visual advancement of early works and their on-schedule, on-budget delivery were highlights of the quarter.
He said under Gavin Chamberlain’s leadership, the focus on tight contract and activity controls is yielding excellent safety, physical and financial outcomes through our early works activities.
“Our advancing early works programs and strong balance sheet allow us to effectively demonstrate to potential customers a solid basis for confidence in our ability to meet future supply commitments.
“The signing of initial offtake agreements with high-quality utility counterparties represents a further important step in our systematic advancement of Etango as we observe market conditions continuing to develop towards incentivising a targeted Final Investment Decision,” he said.
The uranium market backdrop remains supportive, with the term price reaching US$84 per pound by quarter-end amid tightening supply and continued financial buying from Sprott Physical Uranium Trust and Yellow Cake plc.
Etango has now been injury-free for more than 16 years. Site inductions are underway as the workforce scales from around 120 to about 400 people in the coming quarter to support blasting and concrete activities.
