Berkeley Energia Limited Salamanca Capital costs reduced by 1% to EUR 82.3M (2589K)
July 06 2017 - 2:00AM
UK Regulatory
TIDMBKY
RNS Number : 2589K
Berkeley Energia Limited
06 July 2017
BERKELEY ENERGIA LIMITED
NEWS RELEASE | 6 July 2017 | AIM/ASX: BKY
Capital costs for Salamanca reduced by 1% to EUR 82.3
million
The capital cost for the construction of Berkeley Energia's
("Berkeley" or "the Company") Salamanca mine has reduced to EUR
82.3 million (US$ 93.8 million), a 1% reduction over previous
estimates, confirming the project's status as one of the lowest
cost uranium mine developments in the world today.
The project benefits from well-established EU infrastructure and
a highly competitive cost environment combined with short lead
times for major equipment items.
The estimate for bringing the Retortillo deposit into production
was prepared as part of the Front-End Engineering and Design
("FEED") by Amec Foster Wheeler Group, one of the world's largest
engineering groups.
The FEED is the execution phase of the project during which the
overall engineering and process design is translated into equipment
procurement packages and awards to specialist sub-contractors. A
number of Spain's most reputable engineering groups have provided
their input into the Company's study work, including Madrid IBX-35
listed companies Ferrovial and OHL.
The final capital costs reflect all detailed design work carried
out during the FEED, and resulted in an update to the nature and
quantity of materials required to build the Salamanca mine, with
costs from contractors and suppliers being amended based on final
bidding packages.
The FEED study reported that final up-front direct costs for the
Salamanca mine are EUR 74.7 million (US$ 85.1 million), 1% below
estimates from the Definitive Feasibility Study ("DFS") released in
July 2016 (which used 1 April 2016 as the CAPEX estimating base
date).
The main drivers of the optimisation were:
-- An improved sequencing of the project
-- An update to the design of the Leach Pad
-- Improved materials handling
-- Optimised design of civils based on detailed ground conditions
-- Extensive procurement exercise optimising the sourcing of
materials and contractor / supplier negotiations
Breakdown of updated Retortillo capital costs
Cost (EUR
Description million)
-------------------------------- ----------
Mining 4.2
Waste Dumps, Water Management,
etc. 3.3
Process Plant 60.8
Other Capex 4.3
G&A 2.1
-------------------------------- ----------
Total Direct Costs 74.7
-------------------------------- ----------
Indirect Costs 7.6
-------------------------------- ----------
TOTAL COSTS 82.3
-------------------------------- ----------
The Company will continue to pursue cost optimisation
opportunities as it commences full construction this summer, which
includes the evaluation of the indirect costs.
Managing Director, Paul Atherley, commented:
"The FEED has confirmed Salamanca as one of the world's lowest
cost uranium mines to develop.
"Since our successful fundraise late last year, the site has
been prepared for full construction and we now have nearly 70 staff
and contractors on site. The strong support from local communities
is at the heart of the Salamanca mine. Berkeley is fully committed
to further its recruitment drive and training programmes for the
significant expansion of the business over the coming months as
construction accelerates."
For further information please contact:
Berkeley Energia Limited +44 20 3903 1930
Paul Atherley, Managing info@berkeleyenergia.com
Director
Hugo Schumann, Chief Commercial
Officer
Peel Hunt LLP (Joint Broker) +44 20 7418 8900
Matthew Armitt
Ross Allister
Chris Burrows
WH Ireland Limited (Nominated
Adviser) +44 20 7220 1666
Paul Shackleton
Jay Ashfield
Buchanan +44 207 466 5000
Bobby Morse, Senior Partner BKY@buchanan.uk.com
Anna Michniewicz, Account
Director
Competent Persons Statement
The information in this announcement that relates to the FEED
costs is based on, and fairly represents, information compiled by
Mr Francisco Bellon, a Competent Person who is a member of the
Australasian Institute of Mining and Metallurgy. Mr Bellon is the
Chief Operating Officer for Berkeley and a holder of shares,
options and performance rights in Berkeley. Mr Bellon has
sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Mr Bellon consents to the inclusion in the announcement
of the matters based on his information in the form and context in
which it appears.
Forward Looking Statements
Statements regarding plans with respect to Berkeley's mineral
properties are forward-looking statements. There can be no
assurance that Berkeley's plans for development of its mineral
properties will proceed as currently expected. There can also be no
assurance that Berkeley Energia will be able to confirm the
presence of additional mineral deposits, that any mineralisation
will prove to be economic or that a mine will successfully be
developed on any of Berkeley mineral properties. These
forward-looking statements are based on Berkeley's expectations and
beliefs concerning future events. Forward looking statements are
necessarily subject to risks, uncertainties and other factors, many
of which are outside the control of Berkeley, which could cause
actual results to differ materially from such statements. Berkeley
makes no undertaking to subsequently update or revise the
forward-looking statements made in this announcement, to reflect
the circumstances or events after the date of that
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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