As of June 6, Berkeley Energia will be the only Spanish mining company listed on the main board of the London Stock Exchange.
As of Wednesday (June 6), Berkeley Energia (LSE:BKY,ASX:BKY) will be the only Spanish mining company listed on the main board of the London Stock Exchange (LSE). The listing comes after the uranium firm received approval from the UK Listing Authority.
The company will also begin trading on the Spanish Stock Exchange (IBEX) on Thursday (June 7).
“We are pleased to be listing Berkeley on both the Main Board of the London Stock Exchange and the Spanish Stock Exchanges,” said Paul Atherley, Berkeley’s managing director and CEO.
“The company will be Spain’s only listed mining company and we look forward to being a part of the country’s modern mining history and creating long-term shareholder value,” he added.
Berkeley’s primary focus is the Salamanca uranium project located in Western Spain. According to a definitive feasibility study commissioned by the company in 2016, Salamanca has a net present value of US$531.9 million with an internal rate of 60 percent.
It is estimated that within the first decade of operation the project has the potential to produce 4.4 million pounds of uranium annually. This positive outlook has led Berkeley to assert that the Salamanca project will be one of the world’s lowest-cost producers, capable of generating strong after-tax cashflow even during the current low point in the uranium cycle.
Last year, Berkeley penned a US$120-million strategic investment deal with the sovereign wealth fund of the Sultanate of Oman to bring Salamanca into production.
Atherley, who was delighted to welcome Oman’s sovereign wealth fund on as a long-term strategic investor, said in a 2017 press release, “[t]he Salamanca mine is one of the only major uranium mines in development in the world today at a time when spot uranium prices are at a decade low.”
The advancement of the Salamanca project isn’t only good news for Berkeley and Oman — it is also positive news for the EU. European nations are increasingly turning to nuclear power as a viable energy alternative as part of a push to reduce carbon emissions by 95 percent.
In addition to offering greener energy to the EU grid, the Spanish project will also revitalize the local economy.
“It represents a major step forward for the company as we progress with the Salamanca project, providing economic stimulus and creating badly needed jobs in a region with some of the highest levels of unemployment in Europe,” Berkeley’s CEO noted.
Berkeley’s share price opened on the LSE at GBX 46.08 on Wednesday.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.