ENERGY MINERALS

Berkeley hits permitting roadblock in Spain

The bad news is Ian Middlemas-chaired Berkeley Energy may have dusted more than a decade and untold millions trying to develop the Salamanca uranium project in Spain. The positive news is Berkeley is estimated to have more than A$75 million cash to go looking for a new project if indeed it comes to pass that the venture in Spain has been in vain.

Michael Quinn
 A mining development at Salmanca in Spain is currently looking problematic

A mining development at Salmanca in Spain is currently looking problematic

Berkeley today reported authorities have evidently knocked back a permit to build a uranium plant at Salamanca.

Berkeley said it was "extremely disappointed" with the news and would strongly defend its position, with a "range of legal options" to be considered.

Investor confidence in the venture collapsed on the news, with the ASX company's enterprise value reducing to less than $20 million.

Salamanca has shaped as a highly profitable development because of its size, grade and other characteristics, with shareholders' cruelly crushed hopes being compounded given the recently thawing investor sentiment towards the uranium sector.

Middlemas, who has been at the company since 2012, is believed to hold about 3.6% of Berkeley.

However, as well as having plenty of cash, the other positive news for shareholders is Middlemas' track record and connections in the resources sector, offering hope that if Salamanca can't be salvaged, a quality new opportunity could yet emerge.

Shares in Berkeley were down 41% to 37c in morning trade, capitalising the company at $95 million.

Berkeley started the recently completed June quarter with $80 million cash.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.