Berkeley Energia Loss Significantly Widens In First Half

LONDON (Alliance News) - Berkeley Energia Ltd on Thursday reported a fall in revenue, and a widening loss due to the fair value movements on non-cash settled financial liabilities resulting from convertible notes and options.

The energy company recorded a pretax loss of USD40.7 million for the half year to the end of December, widened from USD6.5 million for the same period the year before. The revenue was USD140,000 for the period, down from USD179,000 the prior year.

Berkeley Energia shareholders voted to approve the strategic investment agreement with the Oman sovereign wealth fund involving an investment of up to USD120.0 million.

The widening loss was due to a non-cash fair value movements of USD24.9 million from the convertible note and unlisted options. The rise of share price by over 22% since attributed to the issue of the convertible note and options at the end of the half year, the fair value loss attributable to the financial liabilities has increased "materially". When the convertible note and Options convert into shares, "the liabilities will be reclassified to equity and will require no cash settlement by the company".

"The Salamanca mine, the only major uranium mine to be in construction in the world this year, is scheduled to reach production in 2019 as the market enters the long awaited supply/demand deficit that industry experts have called both fundamental and unavoidable," the company said. "The project continues to receive strong support among key stakeholders in Spain."

Berkeley Energia ended the half year with a cash of USD105.4 million versus USD43.2 million a year ago.

Shares were down at 51.03 pence on Friday morning.

Berkeley Eng