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Berkeley Energia highlights strong share trading in Madrid as mine permitting activity progresses

In Madrid, the company's shares are up by around 70% this week

Berkeley Energia Ltd - Berkeley Energia highlights strong share trading in Madrid as mine permitting activity progresses
Image credit: 4kclips / Shutterstock

Berkeley Energia Ltd (LON:BKY), responding to an ASX query, has said it is not aware of any information not already announced that would explain the recent rise in its share price, and, then, detailed a number of positive factors that are price supportive.

The company is presently advancing permitting efforts for its uranium mine development project in western Spain - about three hours away from Madrid - and it has been putting increasing emphasis on its presence in Spain.

It noted, in the statement, the recently strong performance of its shares on the Madrid Stock Exchange where the price has risen by some 70% since June 15, with more than 115mln shares traded.

READ: Berkeley Energia highlights higher uranium prices

“The company continues to engage with the relevant authorities in a collaborative manner in order to facilitate the timely resolution of the pending approvals required to commence construction of the mine,” the group added.

Presently, the next step in the permitting process will be the submission of a technical report by the Nuclear Safety Council (NSC) and its ratification. The company previously, in late March, sent its documentation to the NSC.

Berkeley also pointed to the strength in the underlying uranium price, which stands presently at around US$32.85 per pound, up more than 30%.

The company at the same time noted some uranium supply disruptions caused by the coronavirus (COVID-19) pandemic, including those announced by Kazatomprom, Cameco, CNNC and Swakop Uranium.

It also highlighted that analysts are expecting a further tightening of market conditions as the structural supply deficit in the global uranium market is exacerbated by these and possible other COVID-19 disruptions.

More generally, Berkeley Energia added: “This increase in uranium prices has also generated increased media interest and corporate activity, which has improved the general sentiment in the uranium sector in recent months.”

Quick facts: Berkeley Energia Ltd

Price: 24.5 GBX

Market: LSE
Market Cap: £63.36 m

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