Berkeley Energia Limited · ASX:BKY
Berkeley Energia — Investor Presentation (November 2016)
30 slides from Berkeley Energia's investor presentation, Nov 4, 2016
Slide 1: Developing the Salamanca project
For personal use only Developing the Salamanca project Europe’s only major uranium mine Low cost producer capable of generating very strong cash flows at the bottom of the uranium price cycle November 2016 1
Slide 2: Salamanca mine has enough recoverable uranium to power the UK
For personal use only THE SALAMANCA MINE HAS ENOUGH RECOVERABLE URANIUM TO POWER THE WHOLE OF THE UK’S ELECTRICITY NEEDS FOR FOUR AND A HALF YEARS David Talbot Dundee Securities September 2015 2
Slide 3: For personal use only
For personal use only 3
Slide 4: The only major new uranium mine being developed in the world today
The only major new uranium mine being developed in the world today For personal use only DUE TO ITS ULTRA-LOW CAPITAL AND OPERATING COSTS Source for Non-Berkeley Figures: Dundee Securities, Public Company Estimates, Company Reports Source for Non-Berkeley Figures: Cantor Fitzgerald “London Marketing
Slide 5: EU funded infrastructure and low operating costs make the difference
EU funded infrastructure and low operating costs make the difference For personal use only 5
Slide 6: Cash costs half the decade-low uranium price
Cash costs half the decade-low uranium price For personal use only 6 Source: UxC consulting, Berkeley Energia Total and Cash Costs (refer Definitive Feasibility Study, July 2016)
Slide 7: Annual exploration expenditure to maintain steady state production
Annual exploration expenditure to maintain steady state production For personal use only Source : Berkley Energia Definitive Feasibility Study, July 2016 7
Slide 8: Over million pounds of uranium in Inferred Resources
Over 30 million pounds of uranium in Inferred Resources For personal use only 8
Slide 9: Post-tax annual free cash flow available for debt service and distribution
Post-tax annual free cash flow available for debt service and distribution For personal use only Capital requirements 2017 US$63 million from equity and strategic partner 2018 US$61 million from strategic partner and debt 2019 US$73 million from cashflow Source : Berkley Energia Definitive Fea
Slide 10: Development and Funding timeline
Development and Funding timeline For personal use only US$10 million in cash as at 30 October 2016 and seeking to raise US$25 million to acquire land and accelerate build of crushing circuit DEVELOPMENT TIMELINE The contracts for the main elements of the crushing circuit will be issued in December
Slide 11: Retortillo site layout
+4 rgia ey ene RETORTILLO SITE LAYOUT
Slide 12: Use of proceeds and transaction timetable
Use of proceeds and transaction timetable For personal use only PLACING TO RAISE US$25.0 MILLION INDICATIVE TIMETABLE OF EVENTS To be structured as a Firm Placing & Conditional Placing to be conducted via an accelerated bookbuild Event Indicative time/date Firm Placing up to extent of existing a
Slide 13: Appendix of supporting information
For personal use only Appendix of supporting information
Slide 14: Highly experienced management team developing their fourth major mine in Spain
For personal use only “Highly experienced management team developing their fourth major mine in Spain” 14
Slide 15: Local community de-populating and suffering inter-generational unemployment
Local community de-populating and suffering inter-generational unemployment For personal use only 15
Slide 16: Rejuvenation of a local community
Rejuvenation of a local community For personal use only BERKELEY IS A GOOD NEIGHBOUR AND A COMMUNITY BUSINESS PARTNER Royalties paid directly to local municipalities Preference given to locals for jobs and training Priority for local businesses Support for culture, tourism and sporting development F
Slide 17: For personal use only
For personal use only Source: UxC, Bloomberg, Macquarie Research, September 2015 17 Source: 2000-2014 data: Rob Chang, Cantor Fitzgerald September 2015 "London Marketing“ Presentation 2015 – 2016 data: UxC USDOE/EIA and ESA reports (data current as of 31 December 2014)
Slide 18: US and EU utility coverage will fall to around 20% of annual requirements
Over five year period from 2018 both US and EU utility coverage will fall to around 20% of annual requirements For personal use only Source: Trade Tech, ‘The EU Nuclear Fuel Market’, July 2016 18
Slide 19: China is spending US$570 billion targeting 10% of electricity from nuclear
China is currently spending US$570 billion targeting 10% of its electricity generation from nuclear For personal use only From 2018 EU and US utilities will be re-contracting at the same time as China is building 60 new reactors Source: ‘Nuclear Power: A Growing Future’,The Economist , September 201
Slide 20: China's nuclear plans will require a five-fold increase in annual uranium demand
China’s nuclear plans will require a five-fold increase in annual uranium demand For personal use only Annual uranium demand million pounds Source: WNA, “Harmony - The role of nuclear energy meeting electricity needs in the 2 degree scenario’, September 2016 [timeframe analysed in report: current da
Slide 21: Discussions with strategic offtake partners well underway
Discussions with strategic offtake partners well underway For personal use only 21
Slide 22: For personal use only
For personal use only 22
Slide 23: Zona is getting bigger
TARGETING MULTIPLE Zona 7 is getting bigger ZONA 7’S For personal use only Z7R-360 10 kms NEW POTENTIAL HIGH GRADE INTERSECTIONS PROCESS PLANT 23
Slide 24: More high grade intersections below Zona
More high grade intersections below Zona 7 For personal use only 24
Slide 25: Executive team & Capital structure
Executive team & Capital structure For personal use only Paul Atherley – Managing Director Mining engineer and MBA with over 25 years industry operating experience. Previously MD of BOARD OF DIRECTORS Leyshon Resources based in Beijing and formerly Executive Director of the Investment Bank arm of HS
Slide 26: Global Mineral Resource Estimates
Global Mineral Resource Estimates at a cut-off grade of 200 ppm U3O8 For personal use only (*) All figures are rounded to reflect appropriate levels of confidence. Apparent differences occur due to rounding. The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modifi
Slide 27: Important notices
Important notices Summary of information: This presentation has been prepared by and is the sole responsibility of Berkeley Energia Limited (Berkeley). This presentation contains general and background information about Berkeley’s activities current as at the date of the presentation and should not
Slide 28: Important notices (continued)
Important notices (continued) Singapore: This presentation has not been and will not be registered as a prospectus with the Monetary Authority of Singapore, and may not contain all the information that a Singapore registered prospectus is required to contain. Accordingly, this presentation and any o
Slide 29: Risks
Risks Key Risks There are a number of risks, both specific to the Company and of a general nature, which may, either individually or in combination, affect the future operational and financial performance of the Company and the value of its securities. These include risks that are widespread and ass
Slide 30: Risks (continued)
Risks (continued) Although Berkeley believes that it is in compliance in all material respects with all applicable environmental laws and regulations, there are certain risks inherent to its activities, such as accidental spills, leakages or other unforeseen circumstances, which could subject Berkel
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