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Published on Oct 27, 2016
Berkeley Energia Limited’s (LON:BKY) uranium mine in Salamanca is scheduled to
come on line in 2018, round about the time the spot price should be
picking up.
Berkeley’s managing director, Paul Atherley, told Proactive Investors that the company is talking to potential off-take partners – mainly US utilities, but also some European and Asian companies.
With the price of uranium low, the utilities have been able to buy on the spot market but Atherley said that, with demand expected to grow, US and EU utilities are expected to start contracting for medium-to-long-term supply, which is where Berkeley comes in.
“They see us as a potential supplier, so they are banging on our door,” Atherley said.
In September, the company signed a Letter of Intent with commodity trader Interalloys relating to the sale of the first million pounds of production from the Salamanca mine over a five year period commencing in 2019.
The average uranium price being contemplated by Berkeley and Interalloys is above US$41 per pound, according to commentary put out by Berkeley in a quarterly report to end September.
“Given that we are going to be producing it at around US$15 a pound, that’s obviously very, very good, but it is going to be interesting to see … as we get closer to production, what the subsequent ones come in at,” Atherley remarked.
http://www.4-traders.com/BERKELEY-ENERGIA-LTD-6496751/
berkeleyenergia.com/
Berkeley’s managing director, Paul Atherley, told Proactive Investors that the company is talking to potential off-take partners – mainly US utilities, but also some European and Asian companies.
With the price of uranium low, the utilities have been able to buy on the spot market but Atherley said that, with demand expected to grow, US and EU utilities are expected to start contracting for medium-to-long-term supply, which is where Berkeley comes in.
“They see us as a potential supplier, so they are banging on our door,” Atherley said.
In September, the company signed a Letter of Intent with commodity trader Interalloys relating to the sale of the first million pounds of production from the Salamanca mine over a five year period commencing in 2019.
The average uranium price being contemplated by Berkeley and Interalloys is above US$41 per pound, according to commentary put out by Berkeley in a quarterly report to end September.
“Given that we are going to be producing it at around US$15 a pound, that’s obviously very, very good, but it is going to be interesting to see … as we get closer to production, what the subsequent ones come in at,” Atherley remarked.
http://www.4-traders.com/BERKELEY-ENERGIA-LTD-6496751/
berkeleyenergia.com/
#BKY Quarterly Report on mine development at Salamanca - fastracking to production into growing Uranium demand https://t.co/lV1C386y9M— Berkeley Energia (@BKYEnergia1) October 26, 2016
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