Berkeley Energia Limited · ASX:BKY
Berkeley Energia — Investor Presentation (September 2016)
23 slides from Berkeley Energia's investor presentation, September 2016
Slide 1: Salamanca: The only major new uranium mine being developed
Salamanca The only major new uranium mine being developed in the world today Low cost producer capable of generating strong cashflow at the bottom of the uranium price cycle A AIM/ASX: BKY ABN: 40 052 468 569
Slide 2: Salamanca mine has enough recoverable uranium to power the UK
THE SALAMANCA MINE HAS ENOUGH RECOVERABLE URANIUM TO POWER THE WHOLE OF THE UK’S ELECTRICITY NEEDS FOR FIVE AND HALF YEARS David Talbot Dundee Securities September 2015
Slide 3: Highly experienced management team has developed three major mines in Spain
HIGHLY EXPERIENCED MANAGEMENT TEAM HAS DEVELOPED THREE MAJOR MINES IN SPAIN
Slide 4: Local community suffering depopulation and inter-generational unemployment
LOCAL COMMUNITY SUFFERING DEPOPULATION AND INTER-GENERATIONAL UNEMPLOYMENT
Slide 5: Rejuvenating the local community
REJUVENTATING THE LOCAL COMMUNITY GOOD NEIGHBOUR AND COMMUNITY BUSINESS PARTNER CO-OPERATION AGREEMENT WITH THE LOCAL MUNICIPALITIES Royalties 0.2% Preference and training to locals for jobs Priority for local businesses Contribute to cultural, tourist and sporting development
Slide 6: Salamanca is highly profitable at current uranium prices
SALAMANCA IS HIGHLY PROFITABLE AT CURRENT URANIUM PRICES Bring into production = NPV £2.01 per share *US$ revenue stream with €uro operating costs Post 2018 when Salamanca comes on line *US utility re-contracting and Chinese new reactor demand expected to drive the uranium price High grade explorati
Slide 7: Rare combination of ultra-low capital and operating costs
RARE COMBINATION OF ULTRA-LOW CAPITAL AND OPERATING COSTS *The only major new uranium mine being developed in the world today “The lowest Capital cost of “Competes with the world’s very lowest any major project worldwide” cost producers both on Cash cost and Total cost” Source for Non-Berkeley Figur
Slide 8: EU funded infrastructure and Zona 7 low operating costs make the difference
EU FUNDED INFRASTRUCTURE AND ZONA 7 LOW OPERATING COSTS MAKE THE DIFFERENCE
Slide 9: Generates strong sustainable earnings
GENERATES STRONG SUSTAINABLE EARNINGS Source: Berkeley DFS Cashflow Model, July 2016
Slide 10: Cash costs half the decade low spot price
CASH COSTS HALF THE DECADE LOW SPOT PRICE TOTAL 15.06 CASH 13.30 Source UxC consulting
Slide 11: China and India commissioning up to 14 new reactors a year
CHINA AND INDIA COMMISSIONING UP TO 14 NEW REACTORS A YEAR From 2018 US utilities will be re-contracting at the same time as Chinese new reactor demand Source: Company Reports, WNA, UxC, Dundee Capital Markets
Slide 12: Source: 2000-2014 data: Rob Chang, Cantor Fitzgerald September 2015 "London Marketing“ Presentation 2015 –
Source: UxC, Bloomberg, Macquarie Research, September 2015 Source: 2000-2014 data: Rob Chang, Cantor Fitzgerald September 2015 "London Marketing“ Presentation 2015 – 2016 data: UxC Consulting USDOE/EIA and ESA reports (data current as of 31 December 2014)
Slide 13: Drilling extending Zona 7 resource
TARGETING MULTIPLE DRILLING EXTENDING ZONA 7’S ZONA 7 RESOURCE ZONA 7 10 kms NEW POTENTIAL HIGH GRADE INTERSECTIONS PROCESS PLANT
Slide 14: Annual exploration to convert 30 million pounds of inferred resources
ANNUAL EXPLORATION TO CONVERT 30 MILLION POUNDS OF INFERRED RESOUCES INTO PRODUCTION
Slide 15: Annual exploration to maintain steady state production rate
ANNUAL EXPLORATION TO MAINTAIN STEADY STATE PRODUCTION RATE
Slide 16: Remains undervalued despite strong 2015/16 share price performance
REMAINS UNDERVALUED DESPITE STRONG 2015/16 SHARE PRICE PERFORMANCE Severstal bid £1.23 in October 2010 (pre ZONA 7 discovery) INFLUENTIAL Targeting NPV SHAREHOLDERS 52% £2.01 per share River and Mercantile 3% Blackrock 5% Anglo Pacific Group 15% Resource Capital Fund 13% First State 3% Majedie Asset
Slide 17: Analyst and shareholder endorsements of the Salamanca Project
“The Salamanca Project is rapidly becoming one of the world’s best undeveloped, near production uranium assets ..this is a very exciting story.” “We look forward to Berkeley’s progress in bringing this exciting David Talbot Dundee Securities project into production.” lists BKY as #1 Pick 2016 Rated
Slide 18: Information Slides
Information Slides
Slide 19: Executive Team & Capital Structure
EXECUTIVE TEAM & CAPITAL STRUCTURE 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 HSBC Australia. Was Chai
Slide 20: Slide 20
Slide 21: Development commences..
Development commences.. BERKELEY *]9]9]
Slide 22: Global Mineral Resource Estimates at a cut-off grade of 200 ppm U3O8
Global Mineral Resource Estimates at a cut-off grade of 200 ppm U3O8 July 2016 Deposit Resource Tonnes U3O8 U3O8 Name Category (Mt) (ppm) (Mlbs) Retortillo Measured 4.1 498 4.5 Indicated 11.3 395 9.8 Inferred 0.2 368 0.2 Total 15.6 422 14.5 Zona 7 Measured 5.2 674 7.8 Indicated 10.5 761 17.6 Inferre
Slide 23: Important notices
Important notices Forward Looking Statements This announcement may include forward-looking statements. These forward-looking statements are based on Berkeley Energia Limited’s (Berkley) expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, un
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