Latest news with #BannermanEnergy
West Australian
2 days ago
- Business
- West Australian
Subiaco's Bannerman Energy seals $85m placement in cash call for Namibian flagship
Bannerman Energy has secured $85 million from shareholders to raise cash to build a uranium project in Namibia that's due to start producing in 2028. The Subiaco-based explorer offered up new shares to its institutional and sophisticated investors at $3.20 apiece, 9.1 per cent cheaper than the stock had been trading at before launching the placement. Funds will go towards Bannerman's main asset, the Etango uranium project in Namibia's Erongo region, with most of the cash set aside for the future mine's earthworks and design, as well as water and power infrastructure. A final investment decision is expected on the operation by the end of the year. The explorer estimates Etango would be producing about 3.5 million pounds of uranium oxide a year once up and running. A study completed by the company this time last year estimated the project would cost about $US353.5m ($542m) to build. Executive chairman Brandon Munro said sentiment regarding uranium demand was 'improving' against the backdrop of nuclear utility activity. 'We will continue taking measured steps towards realising the company's opportunity to deliver uranium into a sector pinch-point,' he told the ASX on Thursday. A recent move by Canadian investment house Sprott to buy $US200m worth of physical uranium for a new fund gave prices a burst of life earlier this month. A pound of uranium has jumped from about $US70 ($107.4) to $US78 ($119.6) since the transaction was announced on June 13. Frenzied speculation about nuclear power's role in decarbonising had helped lift the price for a pound of uranium to peak at over $US100 in January 2024, a 15-year record. Prices stayed above about $US80 until November before cooling off. The call for cash comes about 12 months after Bannerman raised $85m from investors. The explorer has about $140m in the bank following this week's raising. Canaccord Genuity, Shaw and Partners and Jett Capital Advisors were joint lead managers and joint book runners to the placement.
West Australian
19-06-2025
- Business
- West Australian
Noronex launches radiation survey in hunt for Namibian uranium
ASX-listed Noronex has fired the starter's gun on a six-week radioactive spectrometry survey across 17.9 square kilometres of the company's Etango North uranium project in Namibia. The survey is designed to hunt for high-grade hard rock uranium, known as alaskite, in one of the world's most fertile uranium neighbourhoods. The company's grounds sit just 3 kilometres north of Bannerman Energy's giant 225-million-pound Etango deposit and immediately south of major operations, such as the Rossing and Husab mines. The 244-line kilometre survey, with 80-metre line spacing, is being carried out by Terratec Geophysical Services. Survey data will be analysed to pick out anomalies that could shine a light on uranium-rich deposits. Under the terms of an agreement inked last year, Noronex bought the project from a local owner in exchange for an initial payment of $200,000 in cash and shares. To earn a 51 per cent interest, the company has the option to pay a further $61,000 in cash and $61,000 in shares to the vendor by February 2026. Noronex can then earn an additional 29 per cent in 2027 - taking its interest to 80 per cent - by paying $162,000 in cash and the same amount in shares. At that stage, Noronex may choose to enter a joint venture (JV) with the seller - which is free-carried to that point - to further develop the project. Noronex says previous exploration on its grounds has been sparse, with only a dozen shallow air core holes poked into a target in the southwest of the licence area by Bannerman 10 years ago. A further 100 holes were drilled outside of Noronex's boundary. However, all the geological ingredients for a big discovery are plain to see and mapping, geochemistry and radon gas studies already hint at alaskites. This type of hard rock mineralisation is the dominant host rock for most of the area's major mines and tends to be more prevalent at the boundary of the Khan-Rossing formations, which are the dominant structures of the area. Alaskites have also been picked up where the Rossing layer is missing, between the Khan and Chuos or Khan and Arandis formations. The uranium-rich rocks also tend to form along cracks and changes in rock movement, where soft rock turns hard. The best spots for uranium appear to form in folded rocks where pressure creates natural traps. Noronex has also completed an artificial intelligence review over the area, training the networks on known uranium zones to sniff out potential new ones. The AI model highlighted favourable domal zones, which are prime real estate for flat-lying alaskite bodies that could host thick uranium mineralisation. Namibia has a strong uranium mining history. The northwest zone - where Noronex's project is located - is rich in high-grade uranium deposits. Not surprisingly, the region has attracted significant renewed interest from the nuclear energy sector as the world scrambles for yellow cake to feed zero-carbon baseload power production. Etango North is especially compelling given Bannerman's success at the neighbouring Etango mine, where development is well underway on the globally significant deposit. While pushing out the boats for its hunt for uranium, the company has also been busy exploring for copper across a vast 10,000 square kilometre stretch of the Kalahari Copper Belt, aiming to grow its existing 10 million tonne resource at Witvlei grading 1.3 per cent copper. About 130km north of Witvlei, Noronex has also inked a strategic alliance and earn-in agreement with ASX giant South32. The deal gives South32 the option to earn up to 60 per cent of Noronex's Humpback and Damara projects by spending $15 million on exploration over five years. In exchange, Noronex gets strong technical backing and funding to fast-track new discoveries. The highly prospective belt is already home to heavyweights, such as Chinese-backed MMG's 7Mt Cupric copper project and Sandfire Resources' Motheo mine, which hosts 700,000t of contained copper. As the radiation detectors sweep the Namibian desert, Noronex will be hoping the spectrometry lights up more than just anomalies. It could mark the first steps towards Namibia's next big uranium discovery. Is your ASX-listed company doing something interesting? Contact:
Yahoo
26-03-2025
- Business
- Yahoo
We're Hopeful That Bannerman Energy (ASX:BMN) Will Use Its Cash Wisely
Just because a business does not make any money, does not mean that the stock will go down. For example, although made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly. So should Bannerman Energy (ASX:BMN) shareholders be worried about its cash burn? For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. Let's start with an examination of the business' cash, relative to its cash burn. A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. When Bannerman Energy last reported its December 2024 balance sheet in March 2025, it had zero debt and cash worth AU$81m. Importantly, its cash burn was AU$34m over the trailing twelve months. So it had a cash runway of about 2.4 years from December 2024. Importantly, analysts think that Bannerman Energy will reach cashflow breakeven in 3 years. That means it doesn't have a great deal of breathing room, but it shouldn't really need more cash, considering that cash burn should be continually reducing. The image below shows how its cash balance has been changing over the last few years. View our latest analysis for Bannerman Energy Because Bannerman Energy isn't currently generating revenue, we consider it an early-stage business. Nonetheless, we can still examine its cash burn trajectory as part of our assessment of its cash burn situation. In fact, it ramped its spending strongly over the last year, increasing cash burn by 186%. It's fair to say that sort of rate of increase cannot be maintained for very long, without putting pressure on the balance sheet. Clearly, however, the crucial factor is whether the company will grow its business going forward. So you might want to take a peek at how much the company is expected to grow in the next few years. Given its cash burn trajectory, Bannerman Energy shareholders may wish to consider how easily it could raise more cash, despite its solid cash runway. Companies can raise capital through either debt or equity. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn. Since it has a market capitalisation of AU$435m, Bannerman Energy's AU$34m in cash burn equates to about 7.9% of its market value. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan. On this analysis of Bannerman Energy's cash burn, we think its cash runway was reassuring, while its increasing cash burn has us a bit worried. Shareholders can take heart from the fact that analysts are forecasting it will reach breakeven. Considering all the factors discussed in this article, we're not overly concerned about the company's cash burn, although we do think shareholders should keep an eye on how it develops. On another note, Bannerman Energy has 3 warning signs (and 2 which make us uncomfortable) we think you should know about. If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
26-03-2025
- Business
- Yahoo
We're Hopeful That Bannerman Energy (ASX:BMN) Will Use Its Cash Wisely
Just because a business does not make any money, does not mean that the stock will go down. For example, although made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly. So should Bannerman Energy (ASX:BMN) shareholders be worried about its cash burn? For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. Let's start with an examination of the business' cash, relative to its cash burn. A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. When Bannerman Energy last reported its December 2024 balance sheet in March 2025, it had zero debt and cash worth AU$81m. Importantly, its cash burn was AU$34m over the trailing twelve months. So it had a cash runway of about 2.4 years from December 2024. Importantly, analysts think that Bannerman Energy will reach cashflow breakeven in 3 years. That means it doesn't have a great deal of breathing room, but it shouldn't really need more cash, considering that cash burn should be continually reducing. The image below shows how its cash balance has been changing over the last few years. View our latest analysis for Bannerman Energy Because Bannerman Energy isn't currently generating revenue, we consider it an early-stage business. Nonetheless, we can still examine its cash burn trajectory as part of our assessment of its cash burn situation. In fact, it ramped its spending strongly over the last year, increasing cash burn by 186%. It's fair to say that sort of rate of increase cannot be maintained for very long, without putting pressure on the balance sheet. Clearly, however, the crucial factor is whether the company will grow its business going forward. So you might want to take a peek at how much the company is expected to grow in the next few years. Given its cash burn trajectory, Bannerman Energy shareholders may wish to consider how easily it could raise more cash, despite its solid cash runway. Companies can raise capital through either debt or equity. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn. Since it has a market capitalisation of AU$435m, Bannerman Energy's AU$34m in cash burn equates to about 7.9% of its market value. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan. On this analysis of Bannerman Energy's cash burn, we think its cash runway was reassuring, while its increasing cash burn has us a bit worried. Shareholders can take heart from the fact that analysts are forecasting it will reach breakeven. Considering all the factors discussed in this article, we're not overly concerned about the company's cash burn, although we do think shareholders should keep an eye on how it develops. On another note, Bannerman Energy has 3 warning signs (and 2 which make us uncomfortable) we think you should know about. If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
