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Berkeley Energia on track for construction to begin at Salamanca late this year

The Salamanca project retains considerable support locally

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Berkeley Energia's Salamanca mine is the only significant uranium mine currently in development

Construction and commissioning phases are expected to commence at the Salamanca uranium mine owned by Berkeley Energia Ltd (LON:BKY) late 2018 and 2019 respectively, subject to receipt of permits.

Berkeley Energia has also recently identified further cost savings amounting to a potential €9mln, through the optimisation of plant capacities, outsourcing of peripheral infrastructure and reducing initial throughput for production from the Retortillo deposit.

WATCH: Berkeley Energia begins trading on main board of London Stock Exchange

The company retains strong support from key stakeholders after more than 200 of Salamanca's business community came together in support for the €250mln investment involved in Salamanca.

It helps that Berkeley Energia is now listed in Spain, the only mining company on the bourse.

The firm has also received the backing of the local community, with a recent petition supporting its project signed by nearly 1,500 residents in towns surrounding the site.

READ: Berkeley Energia’s Salamanca project receives support from local community

The company has also recorded over 22,500 job applications for the project, with 400 of those coming from nearby villages and of those, over 110 from the local village of Villavieja, representing 25% of its population.

The company has 2.75mln pounds of U3O8 under contract for the first six years, with a further 1.25mln pounds of optional volume, at an average price above US$42, compared with a spot price of US$27.2 per pound.  

At the moment, work is supported by a cash balance of US$101mln.

“Our potential €250mln investment will rejuvenate a local community which is suffering from long-term depopulation and some of the highest levels of youth unemployment within the EU,” said managing director Paul Atherley.

“But our investment also goes beyond just employment - it will boost local businesses, improve schools that haven't been refurbished for decades and see other key services such as petrol stations return to the area."

With shares trading at 32.6p, Berkeley Energia has a market cap of around £85.9mln.

--Adds community petition, share price & market cap, and updates spot price--

 

Quick facts: Berkeley Energia Ltd

Price: 15.75 GBX

LSE:BKY
Market: LSE
Market Cap: £40.71 m
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Watch

Caution over Berkeley Energia report casting doubt over Spanish government...

Numis Securities analyst Justin Chan chats to Proactive London's Andrew Scott following a Reuters report suggesting Spain’s government will not issue the required permits for construction of Berkeley Energia Ltd 's (LON:BKY) Salamanca mine to go-ahead, even though the project was granted...

on 17/10/18

2 min read