”A year ago we’d just done a feasibility study [on Salamanca] and I think we were trading at about half the share price we are today”, says Paul Atherley, chief executive of Berkeley Energia Ltd (LON:BKY, ASX:BKY)
With regard to their latest fundraise, Atherley tells Proactive: ”We had a couple of options – we could go to private equity, we could look at debt, but in the end we went to the equity market because there was so much demand. We needed $15 mln to start constructing our crushing circuit and in the end we raised it to 25, took 30 but could’ve taken $50 mln.”
”That was the demand for the investment in the stock by major institutions in London and at a time when the Uranium price is at 12 year lows and has come off 40%”.
”Although the spot price is very low, about $18/pound and we can produce at around $15/pound we’ve just signed off take agreements over a 5 year term at over $40/pound – so we’re looking at a very substantial margin at over 100% at the bottom of the cycle”.
Story by ProactiveInvestors