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Quarterly update - Berkeley Energia breaks ground at the Salamanca mine
 
After investing US$60 million over the past decade Berkeley Energia has moved one step closer to becoming one of the world’s lowest cost uranium producers as it breaks ground at the Salamanca mine. With approvals in place for initial infrastructure development, work has now commenced on the road realignment and power line upgrade ahead of the main construction.
 
The Definitive Feasibility Study confirmed the Salamanca project will be one of the world’s lowest cost producers capable of generating strong after tax cash flow through the current low point in the uranium price cycle.
 
Over an initial ten-year period the project is capable of producing an average of 4.4 million pounds of uranium per year at a C1 cash cost of US$13.30 per pound and at a total cash cost of US$15.06 per pound, which compares with the current spot price of US$26 per pound and term contract price of US$41 per pound.

During this ten-year steady state period, based on the most recent UxC forward curve of uranium prices, the project is expected to generate an average annual net profit after tax of US$116 million.
 
Managing Director, Paul Atherley, commented:
 
The Salamanca mine will rank as Europe's largest uranium mine, one of the world's top ten producers and will be a long term, reliable supplier of clean energy fuel. It will rejuvenate a local community badly hit by long term unemployment by providing training and sustainable jobs and supporting local business and the community in general.

This positive impact the mining industry has on regional communities starved of investment and sustainable employment is something the Board and management team are proud to be associated with.”

 
With operating costs almost exclusively in Euros and a revenue stream in US dollars the project is expected to continue to benefit from the effects of deflationary pressures within the European Union.
 
The exploration programme continues, aimed at making new discoveries and converting some of the approximately 30 million pounds of Inferred resources into the mine schedule.
 
The Company is fully funded through the initial development phase with A$11.2 million in cash and no debt and is expected to receive an additional US$5 million via the completion of the RCF royalty transaction in the coming weeks.
 
To read the full report please click here
 
 

Email: info@berkeleyenergia.com 
Web: www.berkeleyenergia.com
 
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