Quarterly Report December 2017: Berkeley Energia finalising arrangements for the commencement of construction
(firmenpresse) - Quarterly Report December 2017: Berkeley Energia finalising arrangements for the commencement of construction
Final detailed project reviews are underway as the Company counts down to the commencement of construction at the Salamanca mine.
At the same time production cuts are being announced at some of the worlds largest uranium mines, which are likely to result in a 12% reduction in primary mine production this year.
The Salamanca mine, the only major uranium mine in construction in the world this year, is scheduled to reach production as the market enters the long awaited supply/demand deficit that industry experts have called both fundamental and unavoidable.
The project continues to receive strong support among key stakeholders in Spain, reflecting the growing awareness of the benefits the investment will bring to a community that is experiencing some of the highest levels of unemployment in the European Union.
Highlights:
- Berkeley Energia completes strategic investment of up to US$120m with the Oman sovereign wealth fund:
- Shareholders overwhelmingly voted to approve the strategic investment and the Company received the initial US$65 million tranche of funding in November 2017 which funds the capital costs for production;
- Mr Deepankar Panigrahi, Investment Manager in the Private Equity division of the fund has joined the Board as a Non-Executive Director.
- Construction preparation continues:
- Following the receipt of funding, the Company is filling key management positions and finalising capital and operating costs;
- As part of its commitment to develop the project in partnership with Spanish engineering excellence, Sanchez y Lago, one of Spains major construction companies and contract mining firms has been selected as the preferred mining contractor.
- Strong support from key stakeholders:
- AENOR, the Spanish Association for Standardisation and Certification, recently re awarded the Company certificates in Sustainable Mining and Environmental Excellence;
- As part of its commitment to reduce unemployment in the region, the majority of new staff required for the first phase of construction activity will be recruited from the local villages of Retortillo and Villavieja.
- Uranium market:
- Camecos recently announced suspension of operations at its low cost McArthur River mine along with cuts announced by Areva and Kazatomprom, is expected to remove 17Mlb U3O8 from the market this year (12Mlb attributable to Cameco alone), representing 12% of primary mine supply;
- The Company has 2.75 million pounds of U3O8 under contract for the first six years, with a further 1.25 million pounds of optional volume, at an average price above US$42, compared with a spot price of $24 per pound;
- The Company will continue to progressively build its offtake book and has granted the Oman sovereign wealth fund the right to match any future long term offtake transactions.
- Exploration:
- Exploration focused on identifying additional targets with similar characteristics to Zona 7 continued during the quarter;
- Over 2,200 samples were collected during the first phase of the geochemical sampling programme and twelve potential uranium targets have been identified using a combination of Ionic Leach analysis and other methods.
The Company is in a strong financial position with US$82.2 million in cash.
Managing Director, Paul Atherley, commented:
"Having completed the financing, we are finalising the selection of contractors and are undertaking detailed final reviews to ensure that we have the very best possible capital and operating costs.
Our investment has strong stakeholder support from a community which is experiencing some of the highest levels of unemployment in the European Union.
We have engaged the University of Salamanca to study the positive impact the investment will have on the local community. Previous studies have shown that there is a multiplier of 5.1 indirect jobs for every direct job we are creating.
The benefits go well beyond employment. Evidence elsewhere in Spain has shown that local business, tourism and agriculture will all receive a big boost.
The local housing market is expected to react positively to the investment, as evidenced by the almost 800% increase in the value of real estate surrounding the Aguas Teñidas mine in Andalucía.
For further information please contact:
Berkeley Energia Limited
Paul Atherley-
Managing Director
Hugo Schumann
Chief Commercial Officer
+44 203 903 1930--
info(at)berkeleyenergia.com
Buchanan Communications Ltd.
Bobby Morse-
Senior Partner
Anna Michniewicz
Account Director
+44 207 466 5000--
BKY(at)buchanan.uk.com
Forward Looking Statements
Statements regarding plans with respect to Berkeleys mineral properties are forward-looking statements. There can be no assurance that Berkeleys plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Berkeley will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Berkeley mineral properties. These forward-looking statements are based on Berkeleys expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Berkeley, which could cause actual results to differ materially from such statements. Berkeley makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.
To view entire news in English language, please follow the link: https://hotcopper.com.au/threads/ann-quarterly-report-december-2017.3974050/#.WmbVQajiaUk
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Datum: 23.01.2018 - 08:09 Uhr
Sprache: Deutsch
News-ID 571230
Anzahl Zeichen: 6501
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Business News
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