Berkeley Energia Share Discussion Threads

[casapinos] 11/1/2017 13:18

News articles today "Uranium soars after Kazakh cutback", spot uranium prices rose 10% after Kazakhstan , which produces 40% of world supply announced a reduction in production of about 3%.

[herlat1] 11/1/2017 05:42

Nice jump on ASX today to $1.10 ~68pence..

[liambilson] 11/1/2017 04:16

Storming ahead on ASX!

[houxty] 10/1/2017 17:33

The feature in the Telegraph is sponsored so presumably written by the company's PR machine rather than an independent financial journalist.

It's nothing we don't know and that isn't priced in already.

[snickerdog] 10/1/2017 14:57

New video from BKY posted on Twitter



Berkeley Energia: Find Out How it Secured a Contract for US$43 Uranium

hxxp://smallcappower.com/videos/companies-to-watch/berkeley-energia-090117/

[snickerdog] 10/1/2017 14:54

BKY Feature in Telegraph:



Uranium mine heralds new energy era

Major new mines in post-industrial Europe are rare enough. One dedicated to a commodity currently wallowing close to historic low prices, amid global oversupply, is surely unique.

The Salamanca mine, three hours’ drive west of Madrid, currently in construction by Berkeley Energia, is the only new mine of its kind and size being developed in the world today. Its quarry is uranium, and when it is operating will be Europe’s only major source of the element.

Uranium has had a tough time of late. Nearly all production is used as reactor fuel, and so the commodity has tracked the varying fortunes of the nuclear power industry. Early optimism in the 1960s cooled off rapidly in the 1970s owing to increasing costs and public resistance; nearly two-thirds of new reactors commissioned by 1970 were eventually cancelled. The uranium mining industry, which had developed on the promise of strong growth in power generation, found itself oversupplying the market and stockpiling reserves; mines closed and production was scaled back.

However, things are changing. Governments’ reticence about commissioning replacement plants and expansion of nuclear power capacity has changed, largely because of increased demand for electricity bolstered by decarbonisation treaties. But building new reactors takes time, so the Salamanca project finds itself alone at the new uranium mine party.

But it has good reasons to exist. Its unique circumstances promise uniquely low production costs. The uranium ore is high-grade and very near the surface – only four metres in places – and located in an area of Europe that has already had considerable investment in communication and power grids.

Paul Atherley, Berkeley Energia chief executive, says: “European citizens have already invested in a modern infrastructure, so they might as well get a return on that”. He says the mine’s pre-production capital expenditure of $100m (about £81m at current rates) will be under half that of industry norms.

Mr Atherley says operating costs of $13.30 per pound of uranium make it among the world’s lowest-cost producers, very economic even with the current spot price at 12-year lows of around $18 per pound. Uranium prices look like they are about to turn this corner, with industry giant Cameco’s share price jumping 40pc in the past few weeks after a multiyear decline. If predictions for future uranium demand materialise – a Cantor Fitzgerald report says that oversupply will end by 2020 and there will be a major supply deficit for the next decade – then Mr Atherley expects Salamanca will become a key producer.

He says: “Currently two-thirds of demand comes from OECD countries and three-quarters of supply from Kazakhstan, Russia and Niger. Having a reliable long-term new supplier in the heart of the European Union is proving to be very attractive to the US and EU utilities who are looking to diversify supply away from the non-OECD suppliers.”

This is not the first time uranium has been mined in this area of Spain, although the previous state-owned mine ran from the early 1970s and closed in the early 2000s before the full geological potential of the new site was known. About 60 million pounds of uranium have been confirmed, with a further 30 million expected – offering a possible 4.4 million pounds produced annually through to 2032. Such bounty could produce enough cash flow to cover capital expenditure and move to profit by 2019; until then, the company is funded by a mix of strategic partnerships and equity, and is listed on the London Alternative Investment Market and in Australia.

The local population also stands to benefit. The company received more than 20,000 applications for the first 200 jobs and says the fully active mine will create about 450 direct jobs and more than 2,000 indirect ones, with local communities gaining from training and recruitment, and local suppliers being supported. Development of infrastructure such as community Wi-Fi are among the advantages.

When the mine is fully operational, its predicted output will make it one of the top 10 global producers, with enough uranium to supply the equivalent of the UK’s total power requirements for more than four years. It will bring Europe’s domestic production (currently just 3pc of demand and met by the by-products of other industrial processes) up to 10pc.

The company is keen to stress the quality of production from Salamanca compared with the likes of Niger and Kazakhstan. Europe has high regard for strict health and safety, advanced environmental regulation and strong labour laws. Mr Atherley says: “People want fair-trade coffee and clothes, so why not fair-trade uranium from sources that respect workers and the environment?”

New nuclear

Nuclear energy looks set to take an important role in a carbon-free energy market.

Berkeley Energia will be opening a mine in Salamanca, Spain, to supply uranium for the world's nuclear power.

[tromso1] 08/1/2017 10:55

"INN: What do you expect for the uranium market in 2017?

TOC: For uranium, you can sense the bottom is here. No producers can make money at current spot uranium price and demand will continue to increase due to new reactor builds and more re-starts expected in Japan. Existing and future producers are starting to contract again, at above $40 per pound prices, which is well above both the published spot, and term uranium prices

CP: Leading indicators are pointing to a resurgent bull market. The downturn we have been through has seen little invested in new supply and less in exploration than should have been and this coupled with an improving global outlook for business growth suggests to me that we may be about to enter a bull market that may put the last one in the shade."

[marvelman] 08/1/2017 06:37

....prefer Carole Kirkwood BBC weather girl Shavian...now thats a class act.

Must say I was not so impressed with the lady's presentational skills but certainly a good plug for BKY. Her points (no pun intended) were certainly very valid on uranium generally.

[shavian] 08/1/2017 00:06

Her comany Paternoster has had its fair share of disastrous investments in the past, hence their enormous discount to NAV. Almost all their present investments are in the 'jam tomorrow' category, with no early prospects of income. A prime example is their continuing devotion to Andiamo, since linked to Ortac, a basket case if ever I saw one ( I have the scars to prove it). I think she has a winner in BKY though, as well as a pleasing figure

[ukgeorge] 06/1/2017 14:57

That lady knows f all about mining, she like petrpavlosk ffs

[tromso1] 06/1/2017 13:38

Uranium stocks really starting to pick up now.

This can be seen reflected in the Geiger Counter Investment Trust (GCL) in the UK and the Global X Uranium ETF in the US.

Certainly a positive backdrop for BKY if the Uranium spot price trends up and the uranium sector sees continued interest.

[sir andrew ffoulkes] 06/1/2017 12:34

BKY a favourite of this lady, around 7m in:

[marvelman] 06/1/2017 09:03

Thank you GWR (a railway man?)....wish I had seen this one earlier but not never be too arrogant to admit when you missed the low entry points as there is clearly huge potential here for the patient investor. Chart looking very good. Regards.

[gwr7] 05/1/2017 13:14

Welcome marvelman. The thread is civilized nowadays. We used to have a resident troll, Que Passa, but time has shown him to be an idiot spending many hours bashing a stock that just keeps giving for its investors. Good luck with your investment.

[tromso1] 04/1/2017 08:48

And here's the source...

[tromso1] 04/1/2017 08:18

From the LSE BB...

----

Berkeley Energia’s (BKY) Salamanca mine moves into construction as uranium price rises strongly after multi-year decline

Berkeley Energia’s (BKY) Salamanca mine is the only major uranium mine in the world commencing construction this year just as uranium prices have begun rising after multi-year lows and Donald Trump's inauguration is expected to rejuvenate US nuclear power generation capacity. A recent Financial Times poll has forecast parity for the Euro against the US dollar which will boost the Salamanca mine's profit margins, as its costs are in Euros and its revenue will be in US dollars. The positive political sentiment towards nuclear power continues to grow with investors such as Bill Gates and Li Ka-shing as well as Greenpeace founder, Patrick Moore, backing nuclear power as the key to the world's clean energy future.

Following the start of initial infrastructure works and the ordering of major equipment for the crushing circuit late last year the Salamanca mine, with first production expected in 2018, is ideally placed to service the expected uranium supply/demand deficit, which is forecast to be the greatest the world has ever experienced.

Sentiment regarding the uranium market was turning towards the end of last year and is likely to remain on the up as we head into 2017. In mid-December the spot price jumped above the $20 mark with Ux reporting that several utilities have entered the market, causing the spot price to increase. Since October, industry leader Cameco's (CCJ.T) share price has risen 40% highlighting a potential turnaround in the sector.

The inauguration of Donald Trump later this month could bring more good news for the uranium market. In December the President Elect commented “The US must greatly strengthen and expand its nuclear capability” which led to a spike in uranium stocks. Trump has already indicated his support for the nuclear power industry, during his campaign he said it is “a valuable source of energy and should be part of a program for providing power for America long into the future.”

It is now widely acknowledged that nuclear is an essential part of the energy mix for a zero carbon future and the nuclear industry is finding supporters in all spheres of business, even those that were traditionally sceptical of it. Patrick Moore, founder of Greenpeace, said when he founded the organisation he believed that ‘nuclear energy was synonymous with nuclear holocaust’.

Decades later, he is now strongly in favour of it, claiming: “nuclear energy may just be the energy source that can save our planet from another possible disaster: catastrophic climate change.” Private investors such as Bill Gates and Chinese billionaire Li Ka-shing have been pouring money in nuclear research – and uranium mining – for years now and in December Gates, Jeff Bezos, Richard Branson and others revealed a new $1 billion investment.

With operating costs almost exclusively in Euros and a revenue stream in US dollars the Salamanca mine is expected to continue to benefit from the effects of deflationary pressures within the European Union. The Euro is down 5% against the dollar since the Company published its DFS in July 2016. According to a Financial Times poll of economists, the dollar will attain the same value as the euro during the course of the year, buoyed by higher US interest rates.

Nuclear power is now universally accepted as part of the clean energy future and Berkeley Energia’s Salamanca mine will play a vital role in powering the world in the decades to come. It will be Europe’s only major uranium mine and once in production it will be one of the world’s biggest producers supplying over four million pounds of uranium concentrate a year, equivalent to approximately 10% of the continent’s total requirement.

[tromso1] 03/1/2017 10:28

Yes, quite the move up today. Strongest in a while.

[maffoo] 03/1/2017 10:12

WOW. What a performance today. Excited about this one.

[tromso1] 03/1/2017 09:20

A strong start to the new year with a break to new highs.

[jswjsw] 31/12/2016 23:55

S. Cawkwell (Evil Knievel) assessed BKY NAV at 320p, but I always doubted that. 200p, however, is quite realistic.
I follow EK, but his record on PANR and CHL this year is unfortunate.

j

[maffoo] 31/12/2016 16:36

@herlat1 - Wow, interesting stuff. When they say about the price target I assume they mean by around 2018? It's always very vague the timescale when they talk about price targets...

[herlat1] 30/12/2016 14:31

@maffoo According to Peel Hunt it could treble..Berkeley Energia can triple in value says brokerShare 19:38 01 Nov 2016Peel Hunt's initiation price target is 93p but 159p is a possibility reckons the broker.picture of uranium drumsBerkeley can be one of the lowest cost producers anywhereUranium group Berkeley Energia (LON:BKY) is potentially one of the world's lowest cost producers and worth double its current price reckons broker Peel Hunt.Berkeley's asset is at Salamanca in Spain but Peel Hunt, the house broker, believes costs are similar to the in-situ leach production in Kazakhstan, which is widely acknowledged as the lowest cost uranium address currently.Having an asset such as Salamanca in an OECD country such as Spain is a highly attractive proposition for major utilities that want security of supply.The fact it is being developed when uranium spot prices are at a ten–year low further underlines he quality of the asset.The broker expects US utilities and Chinese groups to compete for offtake deals especially as a significant number of new Chinese reactors are set shortly to come online.On the likely margins, cash flow in each of first five years will be US$150mln or more than the current market value.Once in production, scheduled to be 2018, this cash flow will also allow exploration to increase the predicted 14-year mine life and resource.Peel Hunt's initiation price target currently is 93p, versus a market price of 47p, but as the various permit, finance and development milestones are ticked off the target rises to 159p.

[maffoo] 30/12/2016 13:37

I have faith that this will get very big; how big, I don't know. Could it double?