The average uranium price being contemplated by Berkeley Energia Limited (LON:BKY) and Interalloys for the first million pounds of uranium to come out of Berkeley’s Salamanca mine is above US$41 per pound, according to commentary put out by Berkeley in a quarterly report to end September.
That compares very well with the current spot price of US$22 per pound and illustrates the sometimes opaque nature of pricing in the uranium market, in which the spot price is not always reflective of what people are really paying in longer-term deals.
Discussions are underway to finalise the non-binding agreement with Interalloys, a European commodities trading business. A full off-take deal is anticipated before the end of the year.
Other discussions are also ongoing with Asian and US utilities.
Meanwhile, development at Salamanca continues, and early stage infrastructure work is now underway.
The company had A$13.4 mln in the bank at the end of September, and no debt.
Story by ProactiveInvestors