Paul Smith says uranium price and "globally significant" project will drive valuation even further than 130p

Following the recent strategic stake taken in Berkeley Energia (BKY) by the Sovereign Wealth Fund of the Sultanate of Oman, which provides up to $120m to fully fund the Salamanca mine into production, WH Ireland has increased its target price to 130p. 

Respected mining analyst, Paul Smith, who has been to the Salamanca site and is familiar with the uranium sector, highlights that this is a “globally significant project” and “going forward, we see the likelihood that the mine life will increase and an improving uranium price over and above our long-term price would drive our valuation further.”

On the Oman deal he writes that its “offers Berkeley shareholders real value” and it “represents a ‘near equity’ financing solution at a premium: an impressive coup by management in the current uranium environment.”

Paul sums up his investment case by saying: “there are few development stage uranium projects which can match the investment quality of Berkeley’s Salamanca project and few others which can boast the continuous news flow and pathway to production we anticipate from the project.”

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To listen to Managing Director, Paul Atherley, and Chief Commercial Offer, Hugo Schumann, discussing the financing which provides up to $120m to fully fund the Salamanca mine into production please click here