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Berkeley Energia retains "strong financial position" as it issues quarterly update

The uranium miner said it had a cash balance of around £52.8mln (A$97mln) at the quarter-end as it awaits a key report on its Salamanca uranium mine
Uranium element
Berkeley added that fundamentals in the uranium market “continued to remain strong”

Berkeley Energia Limited (LON:BKY) has retained what it says is a “strong financial position” as it updated the market on its progress in the first quarter of 2019.

The uranium miner said that during the first three months of the year it had received “a number of favourable assessments” from various regulatory bodies for its Salamanca project in Spain, including two from the Spanish government’s Nuclear Safety Council (NSC).

READ: Berkeley Energia notes reports of various legal challenges to appointments to Spain’s Nuclear Safety Council board

Berkeley said it was now awaiting a recommendation report from the NSC, although it added that it would notify shareholders of a decision by the country’s Supreme Court regarding various legal challenges against new appointments to the body after media reports came to light in early April.

Meanwhile, the firm said it would continue to focus on starting construction of the Salamanca mine, with engineering designs for the site currently under review.

The group also retained a cash balance of around £52.8mln (A$97mln) in the quarter.

Strong fundamentals in uranium market

Regarding the uranium market, Berkeley said fundamentals “continued to remain strong” with constrained supply and a growing demand outlook.

The company currently has 2.75mln pounds of triuranium octoxide, a compound of uranium, under contract for six months with another 1.25mln pounds of optional volume, with an average price of over US$42 per pound.

In mid-morning trading on Wednesday, Berkeley’s shares were up 1.3% at 19.5p.

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Berkeley Energia Ltd Timeline

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