TIDMBKY
RNS Number : 5438U
Berkeley Energia Limited
30 July 2020
BERKELEY ENERGIA LIMITED
NEWS RELEASE | 30 July 2020
Quarterly Report June 2020
Summary:
-- Permitting Update:
The Company's focus continues to be on progressing the approvals
required to commence construction of the Salamanca mine and bring
it into production.
The Company continued to engage with the relevant authorities in
a collaborative manner to facilitate the timely resolution of the
pending approvals required to commence construction of the
mine.
The Company's Spanish executives and advisors have met and
continued to have constructive dialogue with officials from the
Nuclear Safety Council ("NSC"), the Federal Government, the
Regional Government of Castilla y Leon and the Municipality of
Retortillo, as well as other key stakeholders, during the
quarter.
In late March, the Company formally submitted the updated
official documentation in relation to the Authorisation for
Construction ("NSC II") to the NSC. During the quarter, the Company
held a number of teleconference meetings with the NSC technical
team to discuss and clarify minor queries on the updated
documentation. The Company also provided written responses and/or
additional technical information to the NSC when requested. The
next step in the process is for the NSC technical team to finalise
its report and submit it to the NSC Board for ratification.
In late July, the NSC issued a favourable report for the
extension of the validity of the Initial Authorisation ("NSC I").
NSC I was granted in September 2015, with a 5-year validity period.
The next step is for the Ministry for Ecological Transition and the
Demographic Challenge ("MITECO") to approve this authorisation and
set its duration period.
With regard to the Urbanism Licence ("UL"), the Ministry of
Environment and Development of the Regional Government of Castilla
y León informed the Municipality of Retortillo and the Company in
March that the previously granted Authorisation of the Exceptional
Land Use, a prerequisite for the award of the UL, remains fully
valid and enforceable. This resolution allows the Municipality of
Retortillo to advance the processing of the Company's UL
application. The Company has met with the relevant officials of the
Municipality of Retortillo during the quarter to ensure that they
have all the required information to be able to award the UL.
-- Uranium Market:
During the quarter, the uranium spot price rose to a high of
US$33.40 per pound and currently stands at US$32.20 per pound which
represents a year to date price increase of 30%.
Uncertainty surrounding COVID-19 impacts to the nuclear fuel
supply chain continued, with supply disruptions being experienced
by a number of major uranium producers including Kazatomprom
(Kazakhstan operations), Cameco (Cigar Lake mine), CNNC (Rössing
mine) and Swakop Uranium (Husab mine).
Analysts expect further tightening of market conditions as the
current structural supply deficit in the global uranium market is
exacerbated by these, and possible other, COVID-19 supply
disruptions. The current market uncertainty is also expected to
heighten concerns about the security of future supply and continued
upward movement in the spot price may be a trigger for increased
term market activity.
-- COVID-19:
During the quarter, the Spanish Government declared that the
National 'State of Alarm' relating to the COVID-19 pandemic, which
began on 14 March, would end on 21 June with its borders reopening
to Europe and free movement being allowed within the country.
Towards the end of July, Spain began experiencing another surge
in COVID-19 cases, with spikes in new daily infection rates forcing
the Government to reinstate both voluntary guidelines and mandatory
restrictions and place parts of the country, particularly in the
north-eastern region of Catalonia, under temporary lockdown
again.
All of the Berkeley team based in Spain are safe and well.
Consistent with current Government guidelines, the Company has
maintained a 'work from home' policy. Subject to the status of the
COVID-19 pandemic and related Government policy and guidelines, it
is expected that the team will recommence working from the Madrid
and Retortillo offices following the end of the European
summer.
Despite the Spanish Government suspending the term of all
administrative and legal proceedings while the 'State of Alarm' was
active, the Spanish Administration was still functioning during
this time and Berkeley was able to maintain regular communication
with the relevant officials from the NSC and the federal, regional
and local governments to ensure the permitting processes continued
to advance.
For further information please contact:
Robert Behets Franciso Bellón
Acting Managing Director Chief Operations Officer
+61 8 9322 6322 +34 91 555 1380
info@berkeleyenergia.com
Project Update:
The Salamanca mine is being developed to the highest
international standards and the Company's commitment to health,
safety and the environment remains a priority. It holds
certificates in Sustainable Mining (UNE 22470-80), Environmental
Management (ISO 14001), and Health and Safety (OHSAS 18001) which
were awarded by AENOR, an independent Spanish government
agency.
During the quarter, planning continued in advance of the annual
internal and external audits of the Company's Sustainable Mining
and Environmental Management Systems which are scheduled to take
place in the coming months.
The annual evaluation of Environmental Aspects ("EA"), which was
completed during the quarter, highlighted that significant
reductions had been achieved in a number of target areas, including
a 38% reduction in fuel consumption, a 48% reduction in printer
toner consumption, and a 85% reduction in fluorescent residue. New
targets have been set for 2020-21, with a focus of further reducing
the consumption of electricity, water, paper and printer toner.
As part of its commitment to Sustainable Mining, the Company has
commenced a Life Cycle Analysis of its operational processes, in
order to determine the environmental impact of the products
associated with these processes from their origin (raw materials)
through to the end of their useful life. During the quarter, this
initiative has focused on the analysis of the environmental impact
of carbon dioxide ("CO(2) ") emissions generated by exploration
drilling activities.
To facilitate an enhanced understanding of the environmental
impact of CO(2) emissions and to determine which phase/activity of
the life cycle is responsible for generating the most CO(2)
emissions, a series of graphics providing visual representation of
the information were designed during the quarter.
The determination and quantification of the direct environmental
aspects derived from the consumption of raw materials and the
production of waste that occurs during the different phases of the
life cycle of exploration drilling activities was also
completed.
The Company continued the migration its Health and Safety
Management System from OHSAS 18001 to its replacement standard, ISO
45001, a process which is targeted for completion in the second
half of 2020. As part of this process, an internal audit is planned
for the first week of August, and the external audit (by AENOR) for
the first week of September.
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 continues to engage with all 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.
During the quarter, the Company's Spanish executives and
advisors have met with (via teleconference calls or in person once
COVID-19 restrictions were lifted) and had constructive dialogue
with relevant officials from the NSC, the Federal Government, the
Regional Government of Castilla y León, the Municipality of
Retortillo, and other key stakeholders.
As previously reported, at the request of the NSC, Berkeley
consolidated the Company's responses to all of the NSC's technical
queries into the official documentation, expanded the description
of some sections (e.g. waste management, analysis of potential
accidents, environmental radiological impact assessment,
hydrological modelling), and formally submitted the updated
official documentation to the NSC at the end of March.
During the current quarter, the Company held a number of
meetings with the NSC technical team to discuss and clarify minor
queries on the updated documentation. The Company has also provided
written responses and/or additional technical information to the
NSC when requested.
The next step in this process is for the NSC technical team to
finalise their report and submit it to the NSC Board for approval.
Once approved by the NSC Board, the NSC report and recommendation
which is 'compulsory and binding on radiological matters' is
provided to MITECO, who is the substantive authority responsible
for the granting NSC II.
In late July, the NSC issued a favourable report for the
extension of the validity of NSC I for the process plant as a
radioactive facility at the Salamanca project. NSC I was granted by
the then Ministry of Industry, Energy and Tourism in September
2015, with a 5-year validity period. The favourable report issued
by NSC considered that the circumstances and characteristics of the
process plant are the same as those contained in the Initial
Authorisation issued in 2015. The next step is for the MITECO to
approve this authorisation and set its duration period.
With regard to the award of the UL, the Municipality of
Retortillo and the Company were informed by the Ministry of
Environment and Development of the Regional Government of Castilla
y León in March that the previously granted Authorisation of the
Exceptional Land Use (a prerequisite for the award of the UL)
remains fully valid and enforceable. This resolution by the
Minister of Environment and Development allows the Municipality of
Retortillo to advance the processing of the Company's UL
application. The Company has met with the relevant officials of the
Municipality of Retortillo during the quarter to ensure that they
have all the required information to be able to award the UL, and
to demonstrate that the application fulfils all technical and legal
requirements.
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.
Uranium market:
Uranium spot price continues to rise on uncertainty surrounding
COVID-19 impacts to the nuclear fuel supply chain.
COVID-19 related supply disruptions have been experienced by a
number of major uranium producers, including by Kazatomprom
(Kazakhstan operations), Cameco (Cigar Lake mine), CNNC (Rössing
mine) and Swakop Uranium (Husab mine). As a result, the uranium
spot price increased to a high of US$33.40 per pound during the
quarter and currently stands at US$32.20 per pound, representing a
year to date increase of 30%.
Analysts expect further tightening of market conditions as the
current structural supply deficit in the global uranium market is
exacerbated by these, and possible other, COVID-19 supply
disruptions.
The current market uncertainty is also expected to heighten
concerns about the security of future supply. Continued upward
movement in the spot price may be a trigger for increased term
market activity. Nuclear fuel buyers for utilities typically look
to secure contracts a minimum of two years ahead of use. With a
number of contracts dropping off from 2021, buyers may step into
the market, providing another possible prop to uranium prices.
COVID-19:
During the quarter, the Spanish Government declared that the
National 'State of Alarm' relating to the COVID-19 pandemic, which
began on 14 March, would end on 21 June with its borders reopening
to Europe and free movement being allowed within the country.
Towards the end of July, Spain began experiencing another surge
in COVID-19 cases, with spikes in new daily infection rates forcing
the Government to reinstate both voluntary guidelines and mandatory
restrictions and place parts of the country, particularly in the
north-eastern region of Catalonia, under temporary lockdown
again.
Specifically, with regard to Berkeley, all of its Spanish team
are safe and well. Consistent with current Government guidelines,
the Company has maintained its 'work from home' policy. Subject to
the status of the COVID-19 pandemic and related Government policy
and guidelines, it is expected that the Berkeley team will
recommence working from the Madrid and Retortillo offices following
the end of the European summer.
Despite the Spanish Government suspending the term of all
administrative and legal proceedings while the 'State of alarm' was
active, the Spanish Administration was still functioning during
this time and Berkeley and its advisors were able to maintain
regular communication with the NSC, federal, regional and local
government officials, and other key stakeholders, to ensure the
permitting processes continued to advance.
Balance Sheet:
The Company is in a strong financial position with A$92 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.
This announcement has been authorised for release by Mr Robert
Behets, Director.
To view the full report including all figures and illustrations,
please visit
https://www.berkeleyenergia.com/investor-relations/company-reports/
.
Appendix 1: Summary of Mining Tenements
As at 30 June 2020, 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. Casta ñ 100% Granted
os 2
I.P. Ciervo 100% Granted
I.P. Dehesa 100% Granted
I.P. El Á guila 100% Granted
I.P. El Vaqueril 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. O ñ oro 100% Granted
I.P. Pedreras 100% Granted
E.P. Herradura 100% Granted
I.P. Conchas Application Pending
C á ceres 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 June 2020. There were no other changes to beneficial
interest, acquired or disposed of, in any mining tenements due to
farm-in or farm-out agreements.
Appendix 2: Related Party Payments
During the quarter ended 30 June 2020, the Company made payments
of $172,029 to related parties and their associates. These payments
relate to existing remuneration arrangements (director and
consulting fees plus statutory superannuation).
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
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