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Upfront costs at Berkeley Energia’s Salamanca uranium mine ‘less than expected’

The developer has shaved 1% off of previous upfront capex estimates which it says confirms Salamanca’s status as “one of the lowest cost uranium mine developments in the world”
salamanca mine
Final upfront direct costs for the project are €74.7mln

A recent study at Berkeley Energia Limited’s (LON:BKY) Salamanca uranium mine in Spain has found that the total upfront capex (capital expenditure) required is less than initially forecast.

According to the front-end engineering and design (FEED) study, final upfront direct costs for the project are €74.7mln; 1% below estimates released in last summer’s definitive feasibility study.

Berkeley said the revised figures confirmed Salamanca’s status “as one of the lowest cost uranium mine developments in the world”.

As the FEED study is carried out during the execution phase of the project, Berkeley said it had a more accurate understanding of costs.

The more efficient cost base was primarily due to improved sequencing of the project, an updated leach pad design, improved materials handling and through negotiating better deals with suppliers.

“The FEED has confirmed Salamanca as one of the world's lowest cost uranium mines to develop,” said managing director Paul Atherley.

“Since our successful fundraise late last year, the site has been prepared for full construction and we now have nearly 70 staff and contractors on site.”

On top of the cost efficiencies already made, Berkeley said it will continue to pursue further “cost optimisation opportunities” as it moves into full construction this summer.

Shares nudged higher in early deals on Thursday to 47p.

--Updates for share price--

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