trending Market Intelligence /marketintelligence/en/news-insights/trending/hMWtD5OEoO1IPxcsj1diAw2 content esgSubNav
In This List

Berkeley: DFS confirms Salamanca as one of the lowest-cost uranium producers


Japan M&A By the Numbers: Q4 2023


Infographic: The Big Picture 2024 – Energy Transition Outlook

Case Study

An Oil and Gas Company's Roadmap for Strategic Insights in a Quickly Evolving Regulatory Landscape


Essential IR Insights Newsletter Fall - 2023

Berkeley: DFS confirms Salamanca as one of the lowest-cost uranium producers

BerkeleyEnergia Ltd. said July 14 that an independent definitivefeasibility study confirmed the Salamanca uranium project in Spain as one of the world'slowest-cost producers.

The study found that over an initial 10-year period,Salamanca is capable of producing an average of 4.4 million pounds of uraniumper year at a total cash cost of US$15.06 per pound.

This compares with the current spot price of US$26 per poundand term contract price of US$41 per pound.

The project is expected to generate an average annual after-taxnet profit of US$116 million over the said 10-year steady state period.

Over the mine's 14-year life, annual saleable productionwill be 3.5 million pounds of uranium at a total cash cost of US$17.15 perpound.

The initial capital cost is US$95.7 million, with firstproduction targeted in 2018.

The DFS pegged a posttax net present value of US$531.9million, at a discount rate of 8%, and an internal rate of return of 60%.

"We have commenced initial infrastructure works and areaiming to establish the operation as one of the world's top 10 producers,reliably supplying long-term customers from the heart of the EuropeanUnion," said Managing Director Paul Atherley.

The total resource at Salamanca is estimated at 89.3 millionpounds of U3O8. The study was based solely on measured and indicated resourcestotaling 59.8 million pounds of U3O8 and did not incorporate any inferredresources, which total 29.6 million pounds of U3O8.