After surging 11.6% on Tuesday, S&P/ASX 300 Index (ASX: XKO) uranium stock Bannerman Energy Ltd (ASX: BMN) is giving back some of those gains today.
Bannerman shares closed yesterday trading for $3.75. In late morning trade on Wednesday, shares are swapping hands for $3.42 apiece, down 8.8%.
Despite today's apparent profit-taking, Bannerman Energy shares remain up an impressive 45.6% since closing at $2.35 each on 20 August.
And according to Fairmont Equities' Michael Gable, the ASX 300 uranium stock is well-placed to keep rallying higher from here (courtesy of The Bull).
Should you buy the dip on Bannerman Energy shares today?
"Bannerman is a uranium development company with its flagship Etango project in Namibia," said Gable, who has a buy recommendation on the ASX 300 uranium stock.
"The company recently announced a major offtake agreement starting in 2029," he added.
Gable concluded:
I remain bullish on uranium miners, and BMN is displaying strong signs that it's bottomed out and is ready to rally further from here. After the peak in late June, BMN then pulled back to consolidate.
On 19 June, Bannerman Energy shares closed the day at $3.57 apiece, then trended lower through to 20 August.
What's happening with the ASX 300 uranium stock's offtake agreement?
Bannerman announced the offtake agreement that Gable referred to above on 5 September.
The miner reported that it had has executed two binding contracts with two Tier-1 North American generation companies for the sale of 1.0 million pounds of uranium over a five-year term from 2029 to 2033.
The uranium is targeted to be produced from the ASX 300 uranium stock's Etango project from 2028 onwards.
The company noted that Etango's significance as a "highly advanced and credible" new supply source is continuing to attract strong interest from global utilities. The contracting strategy was also reported to be flexible, enabling Bannerman to incorporate market-related pricing components to benefit from potentially higher forecast future uranium prices.
Commenting on the new agreements on the day, Bannerman Energy CEO Gavin Chamberlain said, "The signing of these limited, select offtake agreements with high-quality utility counterparties represents a further important step in our systematic advancement of Etango towards a targeted Final Investment Decision."
He added:
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.
With today's intraday slide factored in, shares in the ASX 300 uranium stock remain up 52.7% since this time last year.
