TIDMBKY
RNS Number : 2886R
Berkeley Energia Limited
28 October 2019
BERKELEY ENERGIA LIMITED
NEWS RELEASE | 28 October 2019
Quarterly Report September 2019
Highlights:
-- Management and Strategy Changes:
The Company has now set up its head office in Madrid. The office
is well-located in Madrid's main financial/business district.
The recruitment process of a suitably qualified Spanish National
for the Managing Director and Chief Executive Officer role remains
ongoing.
-- Permitting Update:
The Company continued to engage with the relevant authorities in
a collaborative manner in order to facilitate the timely resolution
of the pending approvals required to commence construction of the
Salamanca mine.
Company representatives have recently met and had constructive
dialogue with officials from the Ministry of Ecological Transition,
the Regional Government of Castilla y Leon, and the Nuclear Safety
Council ("NSC").
The legal challenge that the Company had previously lodged
against the procedure for the 2019 appointments to the Board of the
NSC was withdrawn during the quarter.
The Company has provided the NSC with additional technical
documentation requested in relation to the Authorisation for
Construction (NSC II), and continues to await their recommendation
report.
Subsequent to the end of the quarter, the Spanish National Court
fully dismissed a contentious-administrative appeal filed by a
group of opposition parties against the Initial Authorisation (NSC
I) for the treatment plant as a radioactive facility that was
granted to the Company in 2015.
-- Exploration Program:
The drilling program designed to test for critical battery and
Electric Vehicle ("EV") metals across the Company's large ground
holding in Western Spain commenced.
An initial six-hole drilling program targeting an area is in the
west of the Company's tenement package which has previously been
mined for tin and lithium and has reported significant cobalt
anomalies is well advanced.
Four diamond holes, for approximately 500 metres of drilling,
have been completed to date. Samples from these drill holes have
been sent to the analytical laboratory and final assay results are
pending.
-- Uranium Market:
The uranium price rose 5% during the quarter as the market
continues to await the recommendation from the US nuclear fuel
working group to the Section 232 trade investigation.
The final 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
Management and Strategy Changes:
The Company advises that, consistent with the announcement in
July, it has now set up its new head office in Madrid. The head
office is well-located in Madrid's main financial/business
district.
The recruitment process of a suitably qualified Spanish National
for the Managing Director and Chief Executive Officer role remains
ongoing.
Following on from the Company's 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, Robert Behets,
Non-Executive Director, has assumed the role of Acting Managing
Director and will be assisted in Spain by Francisco Bellón, the
Company's Chief Operations Officer.
Project Update:
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
also holds the relevant status for best practices on Health and
Safety at the Salamanca mine.
During the quarter, the Company completed the annual internal
audits of its Sustainable Mining (UNE 22470-80), Environmental (ISO
14001), and Health and Safety (OHSAS 18001) Management Systems. The
annual external audit of the Company's Health and Safety Management
System was also successfully completed by AENOR.
The annual external audits of the Company's Sustainable Mining
and Environmental Management Systems will be undertaken by AENOR
during the December quarter.
The monitoring programs associated with the NSC approved
pre-operational Surveillance Plan for Radiological and
Environmental Affections and pre-operational Surveillance Plan for
the Control of the Underground Water continued during the
quarter.
Permitting Update:
The Company seeks to engage with the relevant authorities in a
collaborative manner in order to facilitate the timely resolution
of the pending approvals required to commence construction of the
Salamanca mine.
To this end, the Company has recently met and had constructive
dialogue with officials from the Ministry of Ecological Transition,
the Regional Government of Castilla y Leon, and the NSC.
The legal challenge that the Company had lodged against the
procedure for the 2019 appointments to the Board of the NSC was
also withdrawn in early September.
During the quarter, the Company has provided the NSC with
additional technical documentation (e.g. codes and standards
applicable to the proposed fire extinguisher systems) requested in
relation to the Authorisation for Construction, and continues to
await their recommendation report.
Subsequent to the end of the quarter, the Spanish National Court
fully dismissed a contentious-administrative appeal filed by a
group of opposition parties against the Initial Authorisation for
the treatment plant as a radioactive facility that was granted to
the Company in 2015.
In its decision, the National Court stated that the appellants
arguments were limited "to questioning the suitability of the site
and other technical issues through mere value judgments without
providing a minimum technical justification" which was manifestly
insufficient to invalidate the numerous favorable reports and
authorisations already issued by various public administrations to
the Company. In this same context, the National Court ruling
considered and positively recognised the report approved in 2015 by
the NSC for the granting of the Initial Authorisation.
Importantly, the National Court resolution confirms that the
technical documentation provided by the Company during that phase
of the permitting process had included all of the information
required in accordance with the applicable regulations, and that
the assessment carried out by the public administrations had been
and continues to remain valid.
The Company will continue to maintain a consistent approach,
ensuring that the project complies with all applicable laws and
regulations, as it progresses the approvals required to commence
construction of the Salamanca mine and bring it into
production.
Exploration Program:
The drilling program designed to test for critical battery and
EV metals across the Company's large ground holding in Western
Spain commenced during the quarter.
An initial six-hole program, targeting an area is in the west of
the Company's tenement package approximately 50km from Retortillo
which has previously been mined for tin and lithium and has
reported significant cobalt anomalies, is well advanced. Four
diamond holes for approximately 500m of drilling have been
completed to date. These drill holes were planned to test
multi-element anomalies identified along the prominent
northeast-southwest trending structure, known as the Barquilla
Fault, on 400m spaced sections.
The samples from this drilling have been dispatched to the ALS
laboratory in Seville, Spain for sample preparation and have
subsequently sent to the ALS laboratory in Vancouver, Canada for
analysis with the final assay results currently pending.
The overall critical battery and EV metals exploration program
is targeting lithium, cobalt, tin, tungsten and rare earths,
several of which have previously been mined in commercial
quantities in the area.
The Company holds one of the largest exploration ground holdings
in Spain with approximately 1,200km(2) of licences across a mineral
rich province which has had several periods of historic mining for
a number of the metals and minerals being targeted.
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 program. The Ionic
Leach methodology allows for the ultra-low detection of metals and
minerals and significantly reduces the amount of drilling required
by generating highly defined targets.
The results from this initial drilling program will be fed back
into the database and more refined targets interpreted. It will
allow for further analysis of the mineral and metal endowment
across the Company's large ground holding in this mineral rich
province.
Uranium market:
The uranium price rose 5% during the quarter as the market
continues to await the recommendation from the US nuclear fuel
working group to the Section 232 trade investigation.
The final decision is expected to contribute to improved market
conditions moving forward, as US utilities, in particular, continue
their recontracting cycle.
The US Department of Commerce confirmed in July 2018 that it
would initiate a Section 232 trade investigation into uranium
imports which was the result of a petition in mid-January 2018 by
Energy Fuels and Ur-Energy (the only 2 substantive US uranium
producers) and came after a prolonged period of low prices.
The petitioners are seeking a mandated requirement that US
utilities purchase a minimum 25% of their requirements from US
producers. The petition is now under review by the US nuclear fuel
cycle working group which will make a recommendation to the
President by mid-October 2019.
Some market commentators expect that we are likely to see tax
credits offered to utilities for buying domestic uranium and there
may be some mandate to buy a certain amount. The resolution of this
issue is expected to end a period of uncertainty and provide a
boost for uranium prices
The Company has 2.75 million pounds of U(3) O(8) 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.
Balance Sheet:
The Company is in a strong financial position with A$98.2
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 September 2019, the Company had an interest in the
following tenements:
Location Tenement Name Percentage Status
Interest
------------- ------------------------- ------------ --------
Spain
Salamanca D.S.R Salamanca 28 100% Granted
(Alameda)
D.S.R Salamanca 29 100% Granted
(Villar)
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 100% Granted
2
I.P. Ciervo 100% Granted
I.P. Dehesa 100% Granted
I.P. El Águlia 100% Granted
I.P. Espinera 100% Granted
I.P. Horcajada 100% Granted
I.P. Lis 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. El Vaqueril Application Pending
I.P. Lazarillo 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
------------- ------------------------- ------------ --------
No tenements were acquired or disposed of during the quarter
ended 30 September 2019. Applications for Investigation Permits for
Anaya, Dueñas, Dominicos, Rúa and Úrsulas were not granted during
the quarter ended 30 September 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 September 2019
----------------------------------
Consolidated statement of cash Current quarter Year to date
flows $A'000
(3 months)
$A'000
1. Cash flows from operating
activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (1,176) (1,176)
(b) development - -
(c) production - -
(d) staff costs (1,031) (1,031)
(e) administration and corporate
costs (341) (341)
1.3 Dividends received (see note - -
3)
1.4 Interest received 486 486
1.5 Interest and other costs of - -
finance paid
1.6 Income taxes paid - -
1.7 Research and development refunds - -
Other (provide details if
material):
1.8 - Business Development (69) (69)
---------------- -------------
Net cash from / (used in)
1.9 operating activities (2,131) (2,131)
----- ------------------------------------- ---------------- -------------
2. Cash flows from investing
activities
2.1 Payments to acquire:
(a) property, plant and equipment (3) (3)
(b) tenements (see item 10) - -
(c) investments - -
(d) other non-current assets - -
2.2 Proceeds from the disposal
of:
(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): - -
---------------- -------------
Net cash from / (used in)
2.6 investing activities (3) (3)
------- ----------------------------------- ---------------- -------------
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 - -
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 - -
------- ----------------------------------- ---------------- -------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 96,584 96,584
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (2,131) (2,131)
Net cash from / (used in)
investing activities (item
4.3 2.6 above) (3) (3)
4.4 Net cash from / (used in)
financing activities (item
3.10 above) - -
Effect of movement in exchange
4.5 rates on cash held 3,767 3,767
---------------- -------------
Cash and cash equivalents
4.6 at end of period 98,217 98,217
------- ----------------------------------- ---------------- -------------
5. Reconciliation of cash and Current quarter Previous quarter
cash equivalents $A'000 $A'000
at the end of the quarter
(as shown in the consolidated
statement of cash flows) to
the related items in the accounts
5.1 Bank balances 4,738 6,952
5.2 Call deposits 93,479 89,632
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
---------------- -----------------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 98,217 96,584
---- ----------------------------------- ---------------- -----------------
6. Payments to directors of the entity and Current quarter
their associates $A'000
Aggregate amount of payments to these parties
6.1 included in item 1.2 (567)
----------------
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 Current quarter
and their associates $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 available Total facility Amount drawn
Add notes as necessary for amount at quarter at quarter end
an understanding of the position end $A'000
$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 $A'000
quarter
9.1 Exploration and evaluation (1,000)
9.2 Development -
9.3 Production -
9.4 Staff costs (500)
9.5 Administration and corporate costs (200)
9.6 Other (provide details if material) -
--------
9.7 Total estimated cash outflows (1,700)
---- ------------------------------------ --------
10. Changes in tenements Tenement Nature of Interest Interest
(items 2.1(b) reference interest at beginning at end of
and 2.2(b) above) and location of quarter quarter
10.1 Interests in Spain
mining tenements I.P. Anaya Application - Denied
and petroleum I.P. Dominicos Application - Denied
tenements lapsed, I.P. Rúa Application - Denied
relinquished I.P. Úrsulas Application - Denied
or reduced
----- --------------------- ------------------- -------------- -------------- -----------
10.2 Interests in - - - -
mining tenements
and petroleum
tenements acquired
or increased
----- --------------------- ------------------- -------------- -------------- -----------
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:
28 October 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
QRFDMMZGKRNGLZG
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October 28, 2019 03:00 ET (07:00 GMT)
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