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Member Info for Broxburn68

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Member Since: Wed, 7th Sep 2016

Number of Share Chat Posts (all time): 251
Number of Share Chat Posts (last 30 days): 16

Last Posted: Sat 15:26

Post Distribution over the last 30 days

26 Jun '18

I've been doing a bit of research on the main personnel involved in running the CSN from a starting point of complete ignorance. My conclusion, which is of course open to debate, is that it seems highly unlikely that they will stand in the way of granting our permits in due course. They're generally experienced in government and/or mining and have a profile which suggests they will be sympathetic to the BKY cause..



The main issue may be the appointment of Theresa Ribera as Spanish Energy Minister. Ribera previously served as secretary of state for climate change 2008-11. Since then, she became director of the Institute for Sustainable Development and International Relations (Iddri) in Paris and sat on the board of several climate-related organisations. She is known as an advocate for clean energy and international cooperation on climate change.

All wind and gas.

The good news is that Sánchez government does not have a majority in parliament, however, which may constrain the government’s ability to effect change.


Anyway, no RNS suggests no suspension of activities at BKY...so far. However, what's happened to our Spanish Stock Market listing that was supposed to happen on 7 June? Can BKY elaborate on these rumours? I think we all need some updates please!!
8 Jun '18

Hi Captainjameson, with regard to the NSC III permit, this should be completed fairly quickly, certainly not taking two years. To quote from CSN:

"When the facility is ready to start operation, the licensee must report this fact to the CSN so that it can conduct an inspection visit. After this, if the result is positive, the Council will issue a notification for the commissioning which will send to the licensee and the Ministry."


From what I gather from the prospectus, your timescales for Zona 7 and Alameda look to be correct. The rationale behind this may be to fund these developments from free cash flow rather than have a higher up front cost.

It appears that the CSN do not have a track record of refusing permits for other nuclear sites in Spain so IMHO it's just a matter of time before all this is resolved - hopefully sooner rater than later.
5 Jun '18

Apologies - I've missed some developments on the Global X front. Looks like ALL miners are being reduced in holdings here:

4 Jun '18

I believe that the listing takes effect on Wednesday, Forsterite.

I must admit that I did think "other uranium shares are available" after reading the prospectus, but selling at this SP doesn't fit with me. I think this company is really well run, with sensible remuneration packages for directors to boot, but I do wish there was a bit more upfront honesty about any potential permitting hold-ups and any progress fed back to us small PIs.

Sorry, grouchomarx, but your comment about Global X is wrong. I'll re-post the following:

New York-based ETF provider Global X Funds has announced that the Global X Uranium ETF (URA US) will transition to a new index, the Solactive Global Uranium & Nuclear Components Total Return Index.



Stocks in the new index are screened for liquidity and weighted according to free-float market capitalisation.

A specific capping methodology is used at the time of the semi-annual index review to enhance diversification. The maximum weight of a pure play company is 20%, with non-pure play company weightings capped at 4.5%. Further, the sum of weights of all components that have a market capitalisation smaller than $100 million must not exceed 5%.

The fund is expected to begin implementation of the change on or after 2 April 2018.

The main point from our perspective is that as our market cap, even at his low SP, is c. $180m so we would not fall into the category of the restricted percentage of small caps. This suggests that we would not be a target for selling off to fulfil this criteria.

Here's a link to the latest Global X URA ETF holdings to maybe reinforce this point:

4 Jun '18

I'm afraid that it looks like this permitting situation could drag on for quite some time. It seems to me that this is behind the regular shifting back of the timescale for entering full operation.

It looks like we will have some decision on the NSC II application by the end of this year, but no doubt there will be appeals. The final NSC III permit should hopefully be obtained reasonably swiftly once the first two stages have been cleared. At least the company is in a very strong financial position to be able to cope with these delays.

In the meantime, we'll still benefit from any rise in U3O8; decent rise in spot price last month but still no movement on the long term contract price, hence stagnant SP:

4 Jun '18

This may take out some of the uncertainty caused by the recent change of government:

P54 of prospectus:

"The radioactivity and water permits which are granted by the national authorities are �ruled permits� (permisos reglados), meaning that they must be granted if the legal requirements are met and, as a result, they cannot be denied just on the basis of political considerations."
4 Jun '18

Page 40 of prospectus: "It is expected that the Salamanca Project will not reach steady state production prior to 2020"
4 Jun '18

From Prospectus:

The Retortillo deposit will include a uranium treatment plant and a final storage of the radioactive mining
waste backfilled to the exploited pit.

Due to the radioactivity linked with these facilities, the obtaining of three permits from the Ministry of
Energy, Tourism and Digital Agenda is required, namely: the prior authorisation (autorizaci�n previa o de
emplazamiento) (�NSC I�), the construction works authorisation (autorizaci�n de construcci�n) (�NSC II�)
and the final operating authorisation (autorizaci�n de explotaci�n) (�NSC III�).

The first two permits allow for the construction of the radioactive facilities namely the treatment plant and the definitive storage as a pit backfill, while NSC III approval allows for the commencement of radioactive activities once the NSC has conducted a review that the facilities comply with the conditions set out in NSC I and NSC II.

For instance, before granting NSC III approval, the NSC must confirm that the facilities are located exactly
where authorised, so that the constructions strictly correspond with the approved project or so that it is safe
to start operating.

NSC I for the Retortillo deposit was obtained on 15 September 2015. The authorisation was challenged
before the contentious-administrative Courts and proceedings are ongoing however, NSC I remains valid
47 and fully enforceable and has not been suspended.

The application for NSC II was filed on 7 September 2016 and is currently pending. The term of the
proceedings were suspended by Resolution of 18 January 2017 until the NSC issues its mandatory report
on the NSC II application.
30 May '18

Here's a link to today's SOH interview if it's not been posted already by the way:

30 May '18

This comes as no surprise to me after last year's results, but I agree that this is actually very good news despite previous assurances that no placing was required. If this increases the pace of progress of the projects, it's going to add value here in a shorter timescale and most importantly bring forward revenue. Good to see strong II interest as you say.

My guess is that we could see a sustained rise in the SP in the following months if the good news flow regarding new deals is maintained.
26 May '18

Valid comments NigWit and Baht. If secure supply is paramount, this is bound to lessen the chance of them agreeing to a takeover. The reasons I think takeover talk will resurface is the sheer level of interest we are bound to attract once the price of Uranium rises.

Referring to 2010, I believe that this deal was very close to being agreed with Severstal but was ultimately taken off the table by BKY mainly due to a spike in U3O8 prices around that time (c.$60). The offer was AUS$2 (�1.23) per share, valuing us at around �200m even then. There was strong interest from KEPCO as well. The BKY project has advanced dramatically since of course.


25 May '18

Fair comment, but if any contracts have been signed with regard to supply over a period of time, any party taking over would be obliged to honour these agreements. Their aim is to achieve above average returns on investment as any other similar fund.

The Omanis are an investment fund with a diverse portfolio; some of OIF's largest investments include Ireland's Jurys Inns Hotels, the United Arab Emirates' Dubai Mercantile Exchange, and India's Quippo Infrastructure Equipment, Nimbus Communications and Housing Development Finance Corporation. Pretty diverse.
25 May '18

Really good news for us! Not unexpected.


"Supply curtailments such as the one represented with this announcement, together with actions of global peers such as Cameco, Orano and KazAtomprom, could serve to accelerate the anticipated market normalisation"

Agree with your takeover theory Stroan....hope we're right!
23 May '18

Hmm..lacks much in the way of detail about potential revenues in the short/ medium term. We need to see this or the possibility of a cash raise within the next year may arise. Could see a slip back in SP today, though I hope I'm wrong.

Great outlook looking forward though with multiple new deals signed and in the pipeline.
22 May '18

I don't expect revenues to be great either, boyzee, maybe �500-600k? We'll find out tomorrow! SP dipped a bit last year (about 10% within a fortnight) on the announcement of the results but was trading higher the following week.

The good news flow continues strong and fast; the revenues will begin to be booked soon enough. I'm sure we'll be looking at massively different figures in a year or two!
22 May '18

We might also receive an update on the drilling/ exploration programme before the new listings. Good news here or even a resource upgrade would give the launch a welcome boost.
18 May '18

Some good news to cheer us all up a bit. Japanese media are reporting that the British government are offering �13.3bn in financial support to Hitachi to build nuclear reactors in Wales.

16 May '18

Yes indeed, it's a massive market. I'm enjoying this steady stream of good news each month from OPTI; the building blocks are certainly being laid for an exciting future.
15 May '18

I've been looking at the progress of the proposed Kazatomprom IPO (ie. their Swiss marketing subsidiary as I understand it) as a bit of a bellwether for the prospects of a recovery in the uranium price in the next few months and find a lot of encouragement from the indication that the IPO still seems to be on track for Q4 this year.

I wonder if there may be any political machinations involved in the Kazakh sell-offs as hinted at in this article, though surely an IPO would not be affected by its very nature. Interesting if it's offered on the Moscow Exchange, though maybe unlikely. Any thoughts?

"Rakhmetov [MD of Kazakh Sovereign Wealth Fund] said that his fund does not focus on investors from specific states or regions, the maximum price and the buyer�s reliability being the priority. The U.S. sanctions are an issue of close consideration while choosing an investor, an individual approach is necessary in each case"


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