Berkeley Energia Limited · ASX:BKY
Berkeley Energia — Investor Presentation (July 2016)
23 slides from Berkeley Energia's investor presentation, Jul 26, 2016
Slide 1: Salamanca: The only major new uranium mine being developed
For personal use only 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 July 2016 A AIM/ASX: BKY ABN: 40 052 468 569
Slide 2: Salamanca has enough recoverable uranium to power the UK's electricity needs
For personal use only 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
For personal use only HIGHLY EXPERIENCED MANAGEMENT TEAM HAS DEVELOPED THREE MAJOR MINES IN SPAIN
Slide 4: Local community suffering depopulation and unemployment
LOCAL COMMUNITY SUFFERING DEPOPULATION AND INTER-GENERATIONAL UNEMPLOYMENT For personal use only
Slide 5: Rejuvenating the local community
REJUVENTATING THE LOCAL COMMUNITY For personal use only 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 deve
Slide 6: Salamanca is highly profitable at current uranium prices
SALAMANCA IS HIGHLY PROFITABLE AT CURRENT URANIUM PRICES For personal use only 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 pric
Slide 7: Rare combination of ultra-low capital and operating costs
RARE COMBINATION OF ULTRA-LOW CAPITAL AND OPERATING COSTS For personal use only *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
Slide 8: EU funded infrastructure and Zona low operating costs make the difference
EU FUNDED INFRASTRUCTURE AND ZONA 7 LOW OPERATING COSTS MAKE THE DIFFERENCE For personal use only
Slide 9: Generates strong sustainable earnings
GENERATES STRONG SUSTAINABLE EARNINGS For personal use only 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 For personal use only TOTAL 15.06 CASH 13.30 Source UxC consulting
Slide 11: China and India commissioning up to new reactors a year
CHINA AND INDIA COMMISSIONING UP TO 14 NEW REACTORS A YEAR For personal use only 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: For personal use only
For personal use only 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's resource
TARGETING MULTIPLE DRILLING EXTENDING ZONA 7’S For personal use only ZONA 7 RESOURCE ZONA 7 10 kms NEW POTENTIAL HIGH GRADE INTERSECTIONS PROCESS PLANT
Slide 14: Annual exploration to convert inferred resources into production
ANNUAL EXPLORATION TO CONVERT 30 MILLION POUNDS OF INFERRED RESOUCES For personal use only INTO PRODUCTION
Slide 15: Annual exploration to maintain steady state production rate
ANNUAL EXPLORATION TO MAINTAIN STEADY STATE PRODUCTION RATE For personal use only
Slide 16: Remains undervalued despite strong 2015/16 share price performance
REMAINS UNDERVALUED DESPITE STRONG 2015/16 SHARE PRICE PERFORMANCE For personal use only 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
Slide 17: Analyst and shareholder endorsements
“The Salamanca Project is For personal use only 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
Slide 18: Information Slides
For personal use only Information Slides
Slide 19: 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 20: For personal use only
For personal use only
Slide 21: Development commences..
Development commences.. For personal use only
Slide 22: Global Mineral Resource Estimates
Global Mineral Resource Estimates at a cut-off grade of 200 ppm U3O8 July 2016 For personal use only 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
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