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Berkeley shares skyrocket on positive court decision in Spain

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Image credit: Berkeley.

(Kitco News) - Local media sources reported today that the Supreme Court of Spain dismisses appeal against authorization for Berkeley Energy’s (LSE:BKY) Retortillo uranium mine project, located in western Spain, about three hours west of Madrid.

The Supreme Court has confirmed the prior authorization granted by the Government to Berkeley Minera Spain for its uranium concentrates plant in Retortillo (Salamanca), after rejecting the appeal submitted by Foro de Izquierdas - Los Verdes and Adeco - Ecologistas en Acción groups.

In September 2019, the National Court rejected the claims of both groups, which alleged that the environmental impact statement was granted by the Junta de Castilla y León when the State itself should have done so.

In July 2016, Berkeley published the results of a Definitive-Feasibility Study confirming that the Salamanca project will be one of the world’s lowest cost uranium producers, capable of generating strong after-tax cash flows through the current low point in the uranium cycle.

The project has a Net Present Value of US$531.9 million with an internal rate of return of 60% based on a discount rate of 8%.

The Definitive Feasibility Study has reported that over an initial ten year period the project is capable of producing an average of 4.4 million pounds of uranium per year at a cash cost of US$13.30 per pound and a total cash cost of US$15.06 per pound during steady state which compares with the current spot price of US$29.5 per pound.

Berkeley shares were up 39.52% this morning.

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