Bannerman signs first uranium supply deals
ASX-listed Bannerman Energy announced on Friday that it had signed its first uranium supply agreements, securing contracts with two major North American power utilities to deliver one-million pounds of uranium over five years starting in 2029.
The binding deals, which include flexibility of plus or minus 10% a year, cover uranium to be produced at the company’s Etango project in Namibia. The counterparties, described by Bannerman as Fortune 500 energy providers with investment-grade credit ratings, were not named.
Both contracts are structured with base prices and escalation provisions linked to the US GDP-Implicit Price Deflator, but the escalation will only take effect once deliveries begin. The base price is in line with current long-term uranium benchmarks.
“The signing of these limited, select offtake agreements (the first for Bannerman) with high-quality utility counterparties represents a further important step in our systematic advancement of Etango towards a targeted final investment decision," said CEO Gavin Chamberlain.
"We are able to demonstrate to potential customers a strong foundation for confidence in our ability to meet future supply commitments. In combination with growing global nuclear demand and ongoing tightening in uranium markets, this further reinforces our position as a strategic, long-term supplier to major utilities.”
Bannerman said the agreements were subject to regulatory approvals for uranium sales.
Namibia is Africa’s second-largest uranium producer, supplying about 11% of the world’s uranium in 2023.
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