Last checked at 31 Jul 2019 07:00
BERKELEY ENERGIA LIMITED
NEWS RELEASE | 31 July 2019
Quarterly Report June 2019
Highlights:
·; Strategy Change:
The Company's primary focus continues to be on progressing the approvals required to commence construction of the Salamanca mine and bring it into production
The Company is now in the process of setting up its head office in Madrid and will ultimately seek to recruit a suitably qualified Spanish National for the Managing Director and CEO role
Following on from the Company's successful listing on the Spanish Stock Exchanges in 2018, these initiatives are aimed at further enhancing the Company's strong engagement with its key stakeholders in Spain
·; Management Changes:
Subsequent to the end of quarter, Mr Paul Atherley resigned as Managing Director and CEO to concentrate on his other investments in the resource sector
Mr Robert Behets, Non-Executive Director, has now assumed the role of Acting Managing Director on an interim basis and will be assisted in Spain by Mr Francisco Bellón, the Company's Chief Operations Officer
·; Exploration:
The Company will continue to advance the recently announced battery and EV metals exploration strategy which includes an initial six-hole drill programme in licence areas indicated to be prospective for the battery and EV metals lithium, cobalt, tin, tungsten and rare earth elements
·; Permitting Update:
The Company continues to await the Express Resolution on the award of the Urbanism Licence from the local municipality
The Company has provided the Nuclear Safety Council with all requested documentation and continues to await their recommendation report, the timing of which remains uncertain
·; Uranium Market:
The uranium price weakened during the quarter due to uncertainty surrounding President Trump's decision on the Section 232 Petition
However subsequent to the quarter, a decision by the President to decline issuing quotas for US domestic uranium production was announced
The decision is expected to contribute to improved market conditions moving forward, as US utilities, in particular, continue their recontracting cycle
For further information please contact:
Berkeley Energia Limited | |
Robert Behets, Acting Managing Director | +61 8 9322 6322 |
Sean Wade, Chief Commercial Officer | +44 203 903 1930 |
info@berkeleyenergia.com | |
Berenberg (Joint Broker) | +44 203 207 7800 |
Matthew Armitt | |
Detlir Elezi | |
Tamesis Partners (Joint Broker) | +44 203 882 2868 |
Charles Bendon | |
Richard Greenfield | |
Strategy and Management Changes
Subsequent to the quarter, the Company advised shareholders that Mr Paul Atherley had resigned as Managing Director and CEO of the Company to concentrate on his other investments in the resource sector.
Mr Atherley had been Managing Director and CEO of Berkeley Energia since June 2015 and had been instrumental in its growth and development.
The Company's focus continues to be on progressing the approvals required to commence construction of the Salamanca mine and bring it into production, as well as advancing the recently announced battery and EV metals exploration strategy.
The Company will now establish a head office in Madrid and ultimately seek to recruit a suitably qualified Spanish National for the Managing Director and CEO role.
Following on from the Company's successful listing on the Spanish Stock Exchanges in 2018, these initiatives are aimed at further enhancing the Company's strong engagement with its key stakeholders in Spain.
While the recruitment process for a suitable candidate for the Managing Director and CEO position takes place, Mr Robert Behets, Non-Executive Director, has assumed the role of Acting Managing Director and will be assisted in Spain by Mr Francisco Bellón, the Company's Chief Operations Officer.
Drill programme for critical battery and EV metals
During the quarter, the Company announced the commencement of its initial (six hole) drill programme to test for critical battery and EV metals across its large licence holding in Western Spain.
The targets have been generated through detailed exploration for a wide range of minerals over the past two years and further refined by the use of the innovative Ionic Leach programme.
the results from this drill programme will be fed back into the database and more refined targets interpreted which will allow for further analysis of the mineral and metal endowment across the Company's large licence holding in this mineral rich province.
The Company was awarded with three new licenses during the quarter covering an area of 266 km2, located 40 km from Retortillo.
Previous geochemical analysis using ionic leach methodology has shown the licence areas to be prospective for the battery and EV metals lithium, cobalt, tin, tungsten and rare earth elements.
In addition to the new licences recently announced, the Company has been awarded a 31 km2 licence which includes some former lithium and titanium operations and is adjacent to one of the areas being drilled in the current programme.
Permitting Update
The Company has resubmitted its Urbanism Licence application to the local municipality following the resolution of two outstanding items and continues to await the Express Resolution on the award of the licence.
The Company has provided the Nuclear Safety Council with all requested documentation and continues to await their recommendation report, the timing of which remains uncertain.
The Salamanca mine is being developed to the highest international standards and the Company's commitment to the environment remains a priority. It holds certificates in Sustainable Mining and Environmental Excellence which were awarded by AENOR, an independent Spanish government agency. The Company has been re-awarded both certificates following a consultation process with the agency. The Company holds the relevant status for best practices on Health and Safety at the Salamanca mine.
Uranium market
The uranium price weakened during the quarter due to uncertainty surrounding President Trump's decision on the Section 232 Petition.
However subsequent to the end of the quarter, a decision by the President to decline issuing quotas for US domestic uranium production was announced.
The decision is expected to contribute to improved market conditions moving forward, as US utilities, in particular, continue their recontracting cycle.
The Company has 2.75 million pounds of U3O8 under contract for the first six years, with a further 1.25 million pounds of optional volume, at an average price above US$42.
The Company will continue to progressively build its offtake book and has granted the Oman sovereign wealth fund the right to match any future long-term offtake transactions.
Commitment to the community
The Company has invested more than €80 million developing the Salamanca mine over the past decade and plans to invest an additional €250 million over the life of the project.
The Company has signed Cooperation Agreements with the highly supportive local municipalities, demonstrating its commitment to fostering positive relationships with these communities.
To date, through these agreements, the Company has provided Wifi networks for local villages, built play areas for children, repaired sewage water plants, upgraded sports facilities, and sponsored various sporting events and local festivals.
The Company has worked tirelessly over the past decade to develop positive and mutually beneficial relationships with the local communities and will continue to do so as construction ramps up.
Balance Sheet
The Company is in a strong financial position with A$97 million in cash.
Forward Looking Statements
Statements regarding plans with respect to Berkeley's mineral properties are forward-looking statements. There can be no assurance that Berkeley's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Berkeley will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Berkeley mineral properties. These forward-looking statements are based on Berkeley's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Berkeley, which could cause actual results to differ materially from such statements. Berkeley makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.
Appendix 1: Summary of Mining Tenements
As at 30 June 2019, the Company had an interest in the following tenements:
Location | Tenement Name | Percentage Interest | Status |
Spain | |||
Salamanca | D.S.R Salamanca 28 (Alameda) | 100% | Granted |
D.S.R Salamanca 29 (Villar) | 100% | Granted | |
E.C. Retortillo-Santidad | 100% | Granted | |
E.C. Lucero | 100% | Pending | |
I.P. Abedules | 100% | Granted | |
I.P. Abetos | 100% | Granted | |
I.P. Alcornoques | 100% | Granted | |
I.P. Alisos | 100% | Granted | |
I.P. Bardal | 100% | Granted | |
I.P. Barquilla | 100% | Granted | |
I.P. Berzosa | 100% | Granted | |
I.P. Campillo | 100% | Granted | |
I.P. Castaños 2 | 100% | Granted | |
I.P. Ciervo | 100% | Granted | |
I.P. Dehesa | 100% | Granted | |
I.P. El Águlia | 100% | Granted | |
I.P. El Vaqueril | 100% | Granted | |
I.P. Espinera | 100% | Granted | |
I.P. Horcajada | 100% | Granted | |
I.P. Lis (partial) | 100% | Granted | |
I.P. Mailleras | 100% | Granted | |
I.P. Mimbre | 100% | Granted | |
I.P. Oñoro | 100% | Granted | |
I.P. Pedreras | 100% | Granted | |
E.P. Herradura | 100% | Granted | |
I.P. Conchas | Application | Pending | |
I.P. Úrsulas | Application | Pending | |
I.P. Lazarillo | Application | Pending | |
I.P. Anaya | Application | Pending | |
I.P. Dueñas | Application | Pending | |
I.P. Dominicos | Application | Pending | |
I.P. Rúa | Application | Pending | |
Cáceres | I.P. Almendro | 100% | Granted |
I.P. Ibor | 100% | Granted | |
I.P. Olmos | 100% | Granted | |
Badajoz | I.P. Don Benito Este | 100% | Granted |
I.P. Don Benito Oeste | 100% | Granted |
Investigation/Exploration Permits for El Vaqueril, Lis (partial) and Herradura were granted and Investigation Permit Halcón was disposed of during the quarter ended 30 June 2019. Applications for Investigation Permits for Calixto, Melibea, Clerecía and Clavero were denied during the quarter ended 30 June 2019. There were no other changes to beneficial interest in any mining tenements due to farm-in or farm-out agreements. No beneficial interest in farm-in or farm-out agreements were acquired or disposed during the quarter.
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity | ||
Berkeley Energia Limited | ||
ABN | Quarter ended ("current quarter") | |
40 052 468 569 | 30 June 2019 | |
Consolidated statement of cash flows | Current quarter $A'000 | Year to date(12 months)$A'000 | ||
1. | Cash flows from operating activities | - | - | |
1.1 | Receipts from customers | |||
1.2 | Payments for | (1,046) | (4,832) | |
(a) exploration & evaluation | ||||
(b) development | - | - | ||
(c) production | - | - | ||
(d) staff costs | (1,179) | (4,675) | ||
(e) administration and corporate costs | (344) | (1,181) | ||
1.3 | Dividends received (see note 3) | - | - | |
1.4 | Interest received | 1,017 | 2,677 | |
1.5 | Interest and other costs of finance paid | - | - | |
1.6 | Income taxes paid | - | - | |
1.7 | Research and development refunds | - | - | |
1.8 | Other (provide details if material): - Business Development - London and Spain Listing Costs | (93) - | (558) (536) | |
1.9 | Net cash from / (used in) operating activities | (1,645) | (9,105) | |
2. | Cash flows from investing activities | (1) | (19) | |
2.1 | Payments to acquire: | |||
(a) property, plant and equipment | ||||
(b) tenements (see item 10) | - | - | ||
(c) investments | - | - | ||
(d) other non-current assets | - | - | ||
2.2 | Proceeds from the disposal of: | - | 28 | |
(a) property, plant and equipment | ||||
(b) tenements (see item 10) | - | - | ||
(c) investments | - | - | ||
(d) other non-current assets | - | - | ||
2.3 | Cash flows from loans to other entities | - | - | |
2.4 | Dividends received (see note 3) | - | - | |
2.5 | Other (provide details if material): | - | - | |
2.6 | Net cash from / (used in) investing activities | (1) | 9 | |
3. | Cash flows from financing activities | - | - | |
3.1 | Proceeds from issues of shares | |||
3.2 | Proceeds from issue of convertible notes | - | - | |
3.3 | Proceeds from exercise of share options | - | - | |
3.4 | Transaction costs related to issues of shares, convertible notes or options | (2) | (27) | |
3.5 | Proceeds from borrowings | - | - | |
3.6 | Repayment of borrowings | - | - | |
3.7 | Transaction costs related to loans and borrowings | - | - | |
3.8 | Dividends paid | - | - | |
3.9 | Other (provide details if material) | - | - | |
3.10 | Net cash from / (used in) financing activities | (2) | (27) | |
4. | Net increase / (decrease) in cash and cash equivalents for the period | 97,369 | 100,846 | |
4.1 | Cash and cash equivalents at beginning of period | |||
4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (1,645) | (9,105) | |
4.3 | Net cash from / (used in) investing activities (item 2.6 above) | (1) | 9 | |
4.4 | Net cash from / (used in) financing activities (item 3.10 above) | (2) | (27) | |
4.5 | Effect of movement in exchange rates on cash held | 863 | 4,861 | |
4.6 | Cash and cash equivalents at end of period | 96,584 | 96,584 | |
5. | Reconciliation of cash and cash equivalentsat the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts | Current quarter$A'000 | Previous quarter$A'000 |
5.1 | Bank balances | 6,952 | 6,207 |
5.2 | Call deposits | 89,632 | 91,162 |
5.3 | Bank overdrafts | - | - |
5.4 | Other (provide details) | - | - |
5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 96,584 | 97,369 |
6. | Payments to directors of the entity and their associates | Current quarter$A'000 |
6.1 | Aggregate amount of payments to these parties included in item 1.2 | (204) |
6.2 | Aggregate amount of cash flow from loans to these parties included in item 2.3 | - |
6.3 | Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 | |
Payments include directors' fees, superannuation and consulting fees. | ||
7. | Payments to related entities of the entity and their associates | Current quarter$A'000 |
7.1 | Aggregate amount of payments to these parties included in item 1.2 | - |
7.2 | Aggregate amount of cash flow from loans to these parties included in item 2.3 | - |
7.3 | Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2 | |
Not applicable. | ||
8. | Financing facilities availableAdd notes as necessary for an understanding of the position | Total facility amount at quarter end$A'000 | Amount drawn at quarter end$A'000 |
8.1 | Loan facilities | - | - |
8.2 | Credit standby arrangements | - | - |
8.3 | Other (please specify) | - | - |
8.4 | Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. | ||
Not applicable. | |||
9. | Estimated cash outflows for next quarter | $A'000 |
9.1 | Exploration and evaluation | (1,000) |
9.2 | Development | - |
9.3 | Production | - |
9.4 | Staff costs | (800) |
9.5 | Administration and corporate costs | (200) |
9.6 | Other (provide details if material) | - |
9.7 | Total estimated cash outflows | (2,000) |
10. | Changes in tenements(items 2.1(b) and 2.2(b) above) | Tenement reference and location | Nature of interest | Interest at beginning of quarter | Interest at end of quarter |
10.1 | Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced | Spain I.P. Halcón I.P. Calixto I.P. Melibea I.P. Clerecía I.P. Clavero |
Direct Application Application Application Application |
100% - - - - |
- Disposed Disposed Disposed Disposed |
10.2 | Interests in mining tenements and petroleum tenements acquired or increased | Spain I.P. El Vaqueril I.P. Lis (partial) E.P. Herradura |
Direct Direct Direct |
Application Application Application |
100% 100% 100% |
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
[lodged electronically without signature]
Sign here: ............................................................ Date: 31 July 2019
(Director/Company secretary)
Print name: Dylan Browne
Notes
1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.