Strength to \strength24 Jul 2017 16:16
See WH Irelands comment on today's quarterly figures:
June quarter update – Salamanca uranium mine development progressing wel
Berkeley has issued its quarterly update today showing that all remains on track, with the planned early infrastructure work at the Salamanca mine project in Spain nearly completed and the first of the capital equipment delivered to site. The Front-End Engineering and Design has highlighted a reduction in capex for the mine in what was already one of the lowest capital intensity uranium projects globally. Corporately, the board has been strengthened with two new NEDs, one of whom has strong relationships in uranium marketing after his time at Rio Tinto. Contracted offtake has increased to 2.75Mlbs (from 2Mlbs), at terms similar to before, in other words over $42/lb U3O8; much higher than current spot and term prices. Longer term, Berkeley has commenced its exploration campaign to find new “Zona 7s” and has prioritised two key areas for further follow up. We maintain our Buy recommendation and 128p price target.