Berkeley Energia Share Discussion Threads

[bookwormrobert] 24/2/2017 12:30

FWIW, I've copied this from the LSE board.

There has been some discussion on ADVFN about a pending court case so I contacted the Company and the reply I got was as follows

'Many thanks for your email.

As far as the Company is aware there are no current or future legal actions that are expected to have any impact on the development of the mine.

Kind regards,

Katie

[rougepierre] 24/2/2017 12:16

Indeed, those articles are out of date...

There is NO mention of any legal challenges in the latest quarterly report, which reiterates the above statement...

[rougepierre] 24/2/2017 12:08

Bagged some more at 55.3p....

PS Why would BKY need a placing when they've recently said this:

"Following the successful and oversubscribed capital raising completed in December, the Company is fully funded through the development phase with US$31 million in cash and no debt as at 31 December 2016."

Deramper alert...?

[rougepierre] 24/2/2017 12:05

Three months after that last article, BKY published its quarterly results with no mention of the legal challenge...

It also said:

"The Company has to date received over 20,000 applications for the first 200 direct jobs it will create. Once developed, the mine is expected to create 450 direct jobs. The University of Salamanca has estimated that there will be a multiplier of 5.1 indirect jobs for every direct job created, resulting in over 2,700 jobs being created as a result of the investment."

Shades of SXX....but a far better, more imminent, prospect...

AIMHO as usual...

[marvelman] 24/2/2017 10:53

This does have the look of a placing now. FWI I believe it is likely that the court case/protester issues have had an influence on the ability to raise funds from blue chip investors willing to take a chance on making a decent margin in a timely manner. A placing does the job.

Edit

Even with a placing at a lower entry point I would want to wait until these issues are dealt with once and for all.

[marvelman] 24/2/2017 08:44

I agree Robert the share price fall is unlikely to be linked to the court case. This company has overcome huge obstacles to get to this position. However, a court case, no matter how spurious, is an obstacle in obtaining funding from my experience. This share is high on my watchlist and would dearly love to get back in but only with a clear vision that is not obstructed by a potential game changer such as an adverse judgement in the politically correctness environment of the court system. Regards.

[bookwormrobert] 24/2/2017 08:31

I don't think BKY's current share price weakness is linked in any way to the fairly spurious court case. It's sectoral - all the big uranium miners are down this week, most of them by more than BKY. My guess it's linked to the sudden softness of the U3O8 spot price (it fell from $26.50 to $24). Hopefully, Monday will bring a new and better spot price. Perhaps also the Toshiba scandal is affecting sentiment. None of this really matters in the big picture. If the share price does tank more, I'll just buy more.

[marvelman] 24/2/2017 08:14

Well I am out and truly annoyed. There is no mention of a court case pending in any announcements made as far as I can see and had no idea that this was still rolling on. Very unlikely funding can be achieved with a judgement pending in the Spanish courts.

[paleje] 23/2/2017 19:13

Yes I knew Cates' angle, Robert, I thought it was relevant though and highlighted the quality of what's on offer at BKY. Also, for those worried about a placing, it's been known funding had to happen but last time they raised it was at a tiny discount which was testament to the quality of the project and the management, it doesn't have to be an issue at all.

[bookwormrobert] 23/2/2017 17:41

Hi langostino! Thanks for posting the links. You're right, it's always good to know these things. Having read them, I can't say that I'm too worried, though.

[langostino] 23/2/2017 17:06

FYI the ABC article is from yesterday and the El Pais article referring to the Audiencia Nacional (High Court) hearing is yet to be adjudicated, as far as I know.

hxxp://www.abc.es/espana/castilla-leon/abci-berkeley-dice-sentirse-perseguida-mina-uranio-salamanca-201702220920_noticia.html


hxxp://politica.elpais.com/politica/2016/04/27/actualidad/1461782078_062445.html

Surely sensible investors would wish to be as well informed as possible

[bookwormrobert] 23/2/2017 16:43

Hi Paleje - the one thing I'd say about that podcast is that David Cates is shilling for his own projects, in particular for an explorer called Govriex. In particular, he omits mentioning the inconvenient facts (for him) that BKY is coming into production and that it will have the lowest cost production of all uranium producers. But, still, it's good background info.

[paleje] 23/2/2017 15:51

Yellowcake entrepreneur David Cates argues that uranium has made a move toward rationality, although he warns it still has a long way to go. There is now real price movement, volume and thus benefits to price discovery. What is exciting about the long bear market, is the detrimental effect it had on the uranium industry. There are very few good uranium projects out there. When utilities go looking for supplies there will be a real pinch, they won’t be able find any.

He believes that 2017 is similar to the beginning of the last commodity super cycle of 2004, which was largely driven by China. China is looking to expand their clean nuclear industry with upwards of 200 reactors from the current 35. China will therefore become the largest consumer of uranium, he thinks this is the beginning of a uranium super cycle. David is very excited about the speculative potential in the coming market.

David discusses how there are no uranium mines in the world that can make money at the $18.00 level and why it made sense to call that as a market bottom. He says $40 dollar uranium looks to be the necessary price for production to begin. In the longer term, going out to 2025, prices will need be a lot higher. This is all explained in this week's podcast from Palisade Radio.

[bookwormrobert] 23/2/2017 15:46

It's worth saying that BKY's share price decline is sectoral: Cameco is down about 16%, Global ETX down 11%, Paladin down 15%, ERA down 17%, and our own BKY down 12% over the last five days. Presumably it is linked to short term softness in the uranium spot market price, but that doesn't really change anything about the long term solidity of BKY's basic investment proposition.

This is a buying opportunity, and one I intend to take, but only when the share price has stopped falling and found a floor. Never try and catch a falling knife!

[plasybryn] 23/2/2017 15:45

Sorry no...I just read the post on the ATYM thread. Strange place for someone to post this info. I agree!
I sent a copy to the Co. but no response.

[paleje] 23/2/2017 12:26

I think there is much more support than opposition locally and nationally. There has been an action group against the project for some time (aren't there always) but powerful players are in favour. I haven't searched for recent media but here's a piece from November.



Do you have a link to the rumour, Plasbryn?

[plasybryn] 23/2/2017 12:11

Presumably this post on the ADVFN board about BKY is rubbish.
If true the Co. would have issued an RNS.
But could this rumour be behind the unexpected sells?
Buying opportunity?

I am sure you will have done your research on BKY and are keeping a close watch on the Spanish press. There is terrific opposition locally to this project and a case against it pending in the High Court. It has been a tremendous momentum play which I have taken advantage of very profitably, but am now out. It may go ahead. About 50/50 I would say.

[marvelman] 23/2/2017 12:07

Hate to say it but is a funding in the wind...havn't we seen this share action time and time again on AIM.

[pj 1] 23/2/2017 11:34

Hi tightfist
Not that I can remember. I knew nothing of the Company before the presentation so I was unaware of any possible 'mine-in'!

The Presentation, imo, centered more around Uranium, the Market and future Market.

There is a good chance I will be seeing them again in a few weeks in Leeds, so if I have bought in or its still on the w/l I will be more prepared!

[tightfist] 23/2/2017 11:27

Hi PJ1,Thanks for your report-out from the ShareSoc meeting and your impression of the CEO. Did they give any insight to how far they are through the potential-partner Due Diligence?Until that phase is complete and a deal struck and announced (months away?) I wasn't anticipating BKY going very far although U tailwind/headwind will doubtless play a part.A bit bemused by the current share price weakness. I am not sure that the arrival of an ETF as a substantial Holder is good news, there must be a lot of sentiment around trading of a Uranium ETF. If we get forced ETF selling into a weak stock price........Cheers, tightfist

[pj 1] 22/2/2017 18:56

Not in those words. I asked if they were fully funded to which the answer is no. However, the goal is to raise non-dilutive finance.

[rotors] 22/2/2017 15:50

On Feb 8th (first announcement of Global X having a large stake) BKY dipped in price down to 59p. Same again with the new announcement - price down to around 60p.

I suppose the MMs are squaring away their books prior to this stock resuming its inevitable upward climb towards 80p (minimum)

[rotors] 22/2/2017 15:46

AIM RELEASE | 20 February 2017 | AIM: BKY

Notice of change of interests of substantial holder

On 20 February 2017, Berkeley Energia Limited (Company) was notified via the filing of a Form 604 with ASX that Global X Management Company (Global X) had provided notice of change of interests of substantial holder (as defined by the Corporations Act 2001) of the Company as of 15 February 2017, having purchased an additional 2,542,000 ordinary shares on market. Global X now holds 15,441,458 ordinary shares in the Company representing 6.07% of the Company's issued share capital.

[rougepierre] 22/2/2017 15:18

Just doubled my holding...again...