Berkeley Energia - Quarterly Report June 2024
31/07/2024 07:00
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RNS Number : 5185Y Berkeley Energia Limited 31 July 2024
NEWS RELEASE | 31 July 2024
Quarterly Report June 2024
Summary:
· Commencement of International Arbitration against Spain
During the quarter, Berkeley Energia Limited (Berkeley or Company) advised
that its wholly owned subsidiary, Berkeley Exploration Limited (BEL), had
filed a Request for Arbitration (Request) for its investments in Spain through
its Spanish subsidiary, Berkeley Minera España SA (BME), initiating
arbitration proceedings against the Kingdom of Spain (Spain) before the
International Centre for Settlement of Investment Disputes (ICSID).
As part of its Request, BEL alleges that Spain's actions against BME and the
Salamanca project have violated multiple provisions of the Energy Charter
Treaty (ECT), and that BEL is seeking preliminary compensation in the order of
US$1 billion (US$1,000,000,000) for these violations.
In November 2022, BEL submitted a written notification of an investment
dispute to the Prime Minister of Spain and the Ministry for the Ecological
Transition and the Demographic Challenge (MITECO) informing them of the nature
of the dispute and the ECT breaches, and that it proposed to seek prompt
negotiations for an amicable solution pursuant to article 26.1 of the ECT. The
Spanish government has not engaged in any discussions related to the dispute
to date, and BEL filed its Request in order to enforce its rights at the
Salamanca project through international arbitration. The Request was jointly
submitted by specialist teams at Herbert Smith Freehills Spain LLP and LCS
Abogados who will represent BEL in the arbitration proceedings.
Notwithstanding the investment dispute, BEL remains committed to the Salamanca
project and continues to be open to a constructive dialogue with Spain. BEL is
ready to collaborate with the relevant Spanish authorities to find an amicable
resolution to the permitting situation and remains hopeful discussions can
take place in the near term.
BEL has now received the Notice of Registration from ICSID, and in the next
phase of proceedings tribunal members will be selected and appointed, thereby
formally establishing the tribunal.
· Global Nuclear Power and Uranium Market:
Global spot market activity declined in the quarter, resulting in the uranium
spot price closing down for the quarter at US$84 per pound.
During June, the 3-yr Forward Price weakened to US$94 per pound while the 5-yr
Forward Price reported at US$101 per pound. The Long-Term Price firmed
slightly reaching US$79 per pound.
The outlook for nuclear power and the uranium market continued to strengthen
during the quarter, with a number of important recent developments, including:
· United States
o President Biden signing into law the "Prohibiting Russian Uranium Imports
Act" which becomes effective on 11 August 2024, when imports of Russian
uranium into the United States are no longer allowed, subject to a waiver
procedure.
The prohibition allows the Secretary of Energy (in consultation with the
Secretary of State and the Secretary of Commerce) to waive temporarily the
prohibition, and permits importation of Russian low-enriched uranium (LEU) if
the Secretary of Energy determines that there is no alternative viable source
of LEU available to sustain the continuing operation of a nuclear reactor or a
US nuclear energy company, or importation of LEU is in the national interest.
However, any waiver by the Secretary of Energy will terminate no later than 1
January 2028 when all Russian uranium importation will be banned through 2040.
o Public support in the USA for nuclear energy is at a record high level,
according to the latest survey by Bisconti Research Inc. The results show that
for four years in a row, more than three-quarters of the US public said that
they favoured the use of nuclear energy.
· Canada
o The Canadian government has announced the release of Building Canada's
Clean Future, an action plan to modernise federal assessment and permitting
processes to help speed up projects to help fight climate change, create and
support jobs, and grow the Canadian economy. The plan includes, amongst other
things, setting an assessment and permitting target of three years for nuclear
projects.
· European Union
o Leaders from across the European nuclear industry published a manifesto
outlining their priorities for the new European Commission. Nuclear energy,
they note, plays a crucial role in providing the EU with secure and affordable
energy.
· Sweden
o Swedish utility, Vattenfall, announced that the company has decided to
pursue operating lifetime extensions for the Forsmark and Ringhals reactors,
which would allow the units to operate for 80 years as compared to the current
60 years. Vattenfall intends to invest an estimated US$4-5 billion to replace
or renovate systems and components.
· Italy
o The Italian Energy Minister voiced the government's support to investigate
the reintroduction of nuclear power, especially small modular reactors (SMRs),
in the country. He cited the need to meet net zero targets by 2050, as well as
energy independence. Previously, Italy operated four reactors but the program
was shut down following the Chernobyl accident in 1986.
o Under Italy's new energy and climate plan, nuclear power will account for
10-11% of the electricity mix, the Environment and Energy Security Minister
told the ANSA news agency. He said the government was finalising the plan and
would submit it to the EU by the end of the month. The plan covers the period
up to 2030.
· Estonia
o Estonian parliament passed a resolution supporting the adoption of nuclear
energy in the country, paving the way for the creation of the necessary legal
and regulatory framework.
· Norway
o The Norwegian government appointed a committee to conduct a broad review
and assessment of various aspects of a possible future establishment of
nuclear power in the country. It must deliver its report by 1 April 2026.
· Georgia
o Georgia Power announced the commercial operation of the Vogtle-4 reactor,
following the completion of the Vogtle-3 reactor in July 2023. Vogtle Units 1
& 2 have been in operation since 1987 and 1989 respectively and are
currently licensed to operate for 60 years.
· Balance Sheet
The Company is in a strong financial position with A$77 million in cash
reserves and no debt.
Classification: 2.2 This announcement contains inside information
For further information please contact:
Robert
Behets
Francisco Bellón
Acting Managing Director
Chief Operations Officer
+61 8 9322
6322
+34 923 193 903
info@berkeleyenergia.com (mailto:info@berkeleyenergia.com)
Salamanca Project and Background to Dispute
The Salamanca project is being developed in a historic uranium mining area in
Western Spain about three hours west of Madrid.
The Project hosts a Mineral Resource of 89.3Mlb uranium, with more than two
thirds in the Measured and Indicated categories. In 2016, Berkeley published
the results of a robust Definitive Feasibility Study (DFS) for Salamanca
confirming that the Project may be one of the world's lowest cost producers,
capable of generating strong after-tax cash flows.
In April 2021, the Spanish Government approved an amendment to the draft
climate change and energy transition bill relating to the investigation and
exploitation of radioactive minerals (e.g. uranium). The Government reviewed
and approved the amendment to Article 10 under which: (i) new applications for
exploration, investigation and direct exploitation concessions for radioactive
materials, and their extensions, would not be accepted following the entry
into force of this law; and (ii) existing concessions, and open proceedings
and applications related to these, would continue as per normal based on the
previous legislation. The new law was published in the Official Spanish State
Gazette and came into effect in May 2021.
BEL's wholly owned subsidiary, BME currently holds legal, valid and
consolidated rights for the investigation and exploitation of its mining
projects, including the 30-year mining licence (renewable for two further
periods of 30 years) for the Salamanca project, however any new proceedings
opened by the Company is now not allowed under the aforementioned new law.
In November 2021, BME received formal notification from MITECO that it had
rejected the construction of the plant as a radioactive facility (NSC II) at
the Company's Salamanca project following an unfavourable report for the grant
of NSC II issued by the Board of the Nuclear Safety Council (NSC) in July
2021.
BEL strongly refutes the NSC's assessment and, in its opinion, the NSC adopted
an arbitrary decision with the technical issues used as justification to issue
the unfavourable report lacking in both technical and legal support.
BME submitted documentation, including an 'Improvement Report' to supplement
its initial NSC II application, along with the corresponding arguments that
address all the issues raised by the NSC, and a request for its reassessment
by the NSC, to MITECO in July 2021.
Further documentation was submitted to MITECO in August 2021, in which BME,
with strongly supported arguments, dismantled all of the technical issues used
by the NSC as justification to issue the unfavourable report. BME again
restated that the project is compliant with all requirements for NSC II to be
awarded and requested its NSC II Application be reassessed by the NSC.
In addition, BME requested from MITECO access to the files associated with the
Authorisation for Construction and Authorisation for Dismantling and Closure
for the radioactive facilities at La Haba (Badajoz) and Saelices El Chico
(Salamanca), which are owned by ENUSA Industrias Avandas S.A., in order to
verify and contrast the conditions approved by the competent administrative
and regulatory bodies for other similar uranium projects in Spain.
Based on a detailed comparison of the different licensing files undertaken by
BME following receipt of these files, it is clear that BME, in its NSC II
submission, has been required to provide information that does not correspond
to: (i) the regulatory framework, (ii) the scope of the current procedural
stage (i.e., at the NSC II stage), and/or (iii) the criteria applied in other
licensing processes for similar radioactive facilities). Accordingly, BEL
considers that the NSC has acted in a discriminatory and arbitrary manner when
assessing the NSC II application for the Salamanca project.
In BEL's strong opinion, MITECO has rejected BME's NSC II Application without
following the legally established procedure, as the Improvement Report has not
been taken into account and sent to the NSC for its assessment, as requested
on multiple occasions by BME.
In this regard, BEL believes that MITECO have infringed regulations on
administrative procedures in Spain but also under protection afforded to BEL
under the ECT, which would imply that the decision on the rejection of BME's
NSC II Application is not legal.
In April 2023, BME submitted a contentious-administrative appeal before the
Spanish National Court in an attempt to overturn the MITECO decision denying
NSC II.
Further, the BME received formal notifications in December 2023 which upheld
appeals submitted by a non-governmental organisation, Plataforma Stop Uranio,
and the city council of Villavieja de Yeltes (the appellants) to revoke the
first instance judgements related to the Authorisation of Exceptional Land Use
(AEUL) and the Urbanism License (UL), which annuled both the AEUL and UL.
The AEUL and the UL were granted to BME in July 2017 and August 2020 by the
Regional Commission of Environment and Urbanism, and the Municipality of
Retortillo respectively.
The appellants subsequently filed administrative appeals against the AEUL and
the UL at the first instance courts in Salamanca. The administrative appeals
against the AEUL and UL were dismissed in September 2022 and January 2023
respectively.
One of the appellants subsequently lodged appeals before the High Court of
Justice of Castilla y León (TSJ), with the TSJ delivering judgements in
December 2023 to revoke the first instance judgements and declare the AEUL and
the UL null.
BME strongly disagrees with the fundamentals of the TSJ's judgement and having
previously submitted cassation appeals against the TSJ judgements before the
Spanish Supreme Court, BME has withdrawn the appeals to preserve BEL's rights
under international arbitration.
Salamanca Project Update
During the quarter, the Company continued with its commitment to health,
safety and the environment as a priority.
During the quarter, an audit of the Environmental Management System according
to ISO 14001 Standards and Sustainable Mining Management System according to
UNE 22470/80 Standards of the Company's activities was carried out. No
compliance issues were identified during the audit and the final report noted
that BME continues to improve its climate change and sustainability processes.
The Company's 2023 Sustainability Report was published during the quarter and
can be viewed at
https://wp-berkeleyenergia-2020.s3.eu-west-2.amazonaws.com/media/2024/06/Sustainable-P-Report-v10r.pdf
(https://wp-berkeleyenergia-2020.s3.eu-west-2.amazonaws.com/media/2024/06/Sustainable-P-Report-v10r.pdf)
. The Company is now working towards setting its sustainability goals for the
upcoming 2024 period.
Solar Power System Study
As previously reported, Berkeley initiated a study evaluating the design,
permitting, construction and operation of a solar power system at the Project.
This study has been finalised, a formal application submitted to the relevant
authorities in Salamanca, and the permitting process continued during the
quarter.
The decision to pursue a solar power system is in line with Berkeley's ongoing
commitment to environmental sustainability and to continue to have a positive
impact on the people, environment and society surrounding the mine.
Exploration
During the quarter, the Company continued with its initial exploration program
focusing on battery and critical metals in Spain. The exploration initiative
is targeting lithium, cobalt, tin, tungsten, rare earths, and other battery
and critical metals, within the Company's existing tenements in western Spain
that do not form part of Berkeley's main undertaking being the development of
the Salamanca project. Further analysis of the mineral and metal endowment
across the entire mineral rich province and other prospective regions in Spain
is also being undertaken, with a view to identifying additional targets and
regional consolidation opportunities.
Investigation Permit Conchas
The Investigation Permit (IP) Conchas is located in the very western part of
the Salamanca province, close to the Portuguese border (Figure 1). The
tenement covers an area of ~31km(2) in the western part of the Ciudad Rodrigo
Basin and is largely covered by Cenozoic aged sediments. Only the
north-western part of the tenement is uncovered and dominated by the Guarda
Batholith intrusion. The tenement hosts a number of sites where small-scale
historical tin and tungsten mining was undertaken. In addition, several
mineral occurrences (tin, tungsten, titanium, lithium) have been identified
during historical mapping and stream sediment sampling programs.
Billiton PLC undertook exploration on the IP Conchas between 1981 and 1983,
with a focus on tin and tantalum (lithium was not taken into account).
Billiton's work programs comprised regional and detailed geological mapping,
geochemistry, trenching and limited drilling.
Soil sampling programs completed by Berkeley in the northern and central
portions of the tenement during 2021 (200m by 200m) and 2022 (100m by 100m)
defined a tin-lithium anomaly covering approximately 1.1km by 0.7km which
correlated with a mapped aplo-pegmatitic leucogranite.
Based on the results of the soil sampling programs and information gleaned
from a review of the available historical data, a small initial drilling
program was implemented in 2022 to test the tin-lithium anomaly. The drill
program comprised five broad spaced reverse circulation (RC) holes for a total
of 282m. Anomalous results for lithium (Li), tin (Sn), rubidium (Rb), caesium
(Cs), niobium (Nb) and tantalum (Ta) obtained from multi-element analysis of
drill samples were reported in the March 2023 quarter, demonstrating IP
Conchas' exploration potential for several critical and strategic raw
materials included in the European Commission's Critical Raw Materials Act.
The occurrence of these six elements is observed to be largely associated with
a sub-horizontal muscovitic leucogranite unit that locally outcrops at
surface. The muscovitic leucogranite has a mapped extent of approximately 2km
(in a NE-SW orientation) by 0.4km (in a NW-SE orientation) (Figure 1) and
varies in thickness from 7m to over 70m in the drill holes (Figure 2).
A number of mineralogical studies have subsequently been undertaken to
determine the mineral species present and understand their characteristics and
properties. Results of these studies indicate the mineralised muscovitic
leucogranite is composed mainly of plagioclase (average content of 55%) and
quartz (average content of 25%), with potassium feldspar, muscovite mica, and
Li-mica making up remainder of the rock. The samples have an average Li-mica
content of 3%.
The Company has advanced plans for a second drilling campaign at IP Conchas
focused on improving confidence in the geology, continuity, and grade
distribution of the zone of multi-element mineralisation.
The planned campaign will comprise 32 RC holes for 1,870m drilled on a
100m-by-100m grid, with depths ranging from 30m to a maximum of 130m. In
addition, four PQ diamond core holes for 500m will be drilled to collect
samples for metallurgical test work purposes.
The drilling campaign is anticipated to commence in early August 2024.
Figure 1: IP Conchas Location Plans and Geology / Drill Hole Location Plan
Figure 2: IP Conchas Cross Section A-A(1)
Oliva and La Majada Projects
These projects comprise three tenements within two project areas in Spain
which are considered prospective for tungsten, cobalt, antimony, and other
metals.
The Company has designed exploration programs for both projects, communicated
with the relevant authorities and commenced any required studies e.g. a
birdlife study at the La Majada Project, to progress the pending grant of the
IPs for two of the tenements.
Additional Information on the Global Nuclear Power and Uranium Market
The outlook for nuclear power and the uranium market continued to strengthen
during the quarter, with several important recent developments, including:
· Total energy investment worldwide is expected to exceed US$3
trillion in 2024 for the first time, with some US$2 trillion set to go toward
clean technologies, the International Energy Agency (IEA) says in its newly
released World Energy Investment 2024. Investments in nuclear power, it says,
are expected to increase in 2024, with its share (9%) in clean power
investments rising after two consecutive years of decline. The IEA expects
total investment in nuclear to reach US$80 billion in 2024, nearly double the
2018 level, which was "the lowest point in a decade.
· Unit 1 of the Ascó nuclear power plant in Spain recently reached
the figure of 300,000 GWh contributed to the electrical grid, as announced by
the operator. It becomes the fourth Spanish electricity production facility to
reach this milestone. Ascó I, a 1030 MWe pressurised water reactor, completed
40 years of operation in August last year. The milestone reached by the plant
represents the generation of as much electrical energy as the city of
Barcelona would consume for 23 years.
· The European Commission has approved, under EU State aid rules, a
EUR300 million (US$320 million) French measure to support EDF subsidiary
Nuward in researching and developing SMRs. Under the measure, the aid will
take the form of a direct grant that will cover the R&D project until
early 2027. The measure will support Nuward in sizing the modules and
components of the SMRs and validating their integration in the SMRs by means
of numerical simulators and laboratory tests. The commission said the measure
"will contribute to the achievement of the strategic objectives of the
European industrial strategy and the European Green Deal.
· French utility EDF has signed green bank loans for a total amount
of about EUR5.8 billion (US$6.3 billion), which will be used to finance the
life extension of its existing nuclear power plant fleet in France.
· Speaking at a conference in Athens, Greece's Prime Minister spoke
about the possibility of constructing SMRs for electricity generation. "There
is no way to achieve carbon neutrality without nuclear energy," he was cited
as saying. "So, as Europeans, are we investing in the next generation of small
nuclear reactors."
· The European Commission has approved Czechia's proposed public
support package for new nuclear - after modifications were made to address
their concerns during an inquiry which began in June 2022.
· Norsk Kjernekraft has submitted a proposal to Norway's Ministry
of Energy for an assessment into the construction of a power plant based on
multiple SMRs in Norway. The company said it marks the first step in the
formal process to establish nuclear power plants.
· Polish industrial group Industria's plan to construct a power
plant based on Rolls-Royce's SMRs was approved by the Ministry of Climate and
Environment.
· The Kyrgyzstan government passed a draft bill which invalidates
the 2019 law on prohibition of geological exploration and development of
uranium deposits. Adoption of amended law will be accompanied by monitoring of
the latest technologies in extraction of uranium, which will aim to minimise
negative impact of mining on the environment.
· The Liberal Party of Australia confirmed that a future Australian
Federal Coalition Government would introduce nuclear energy in the country,
and announced seven locations where plants could be built.
· Australian attitudes towards energy sources have shifted
markedly, the 20(th) edition of the Lowy Institute's annual poll has found,
with six in ten now supportive of Australia using nuclear power to generate
electricity.
· US utilities purchased 27% more uranium in 2023 than 2022,
according to the US Energy Information Administration's latest annual report.
Most of this came from foreign suppliers - US-origin material accounted for 5%
of total deliveries, the same percentage as 2022.
· Thailand's Prime Minister used his first monthly television
address as the country's leader to promote plans for constructing a nuclear
power plant to reduce electricity costs. Nuclear power would also help
Thailand achieve its net-zero carbon emission pledge, the Prime Minister has
said.
· Japan's Nuclear Regulation Authority has approved operating
license extension (20 years) for Kansai Electric Power Company's Takahama 3
& 4 reactor (2 x 830 Mwe). Previously, Kansai's Takahama 1 & 2 (2 x
780 Mwe) were the first two reactors in Japan to receive operating license
extensions.
· Reuters reported during the quarter that the UAE / Emirates
Nuclear Power Corporation is planning to construct a second Nuclear Power
Plant following the recent completion of the Barakah reactors, consisting of
four Korean-built APR-1400 reactors (Barakah-4 was connected to the grid in
March 2024). The associated tender could be distributed sometime this year
with the target date for commercial operations being as early as 2033.
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 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
report.
Competent Persons Statement
The information in this report that relates to Exploration Results is
extracted from the March 2023 Quarterly Report which is available to view on
Berkeley's website at www.berkeleyenergia.com (http://www.berkeleyenergia.com)
. Berkeley confirms that: a) it is not aware of any new information or data
that materially affects the information included in the original announcement;
b) all material assumptions and technical parameters underpinning the
Exploration Results in the original announcement continue to apply and have
not materially changed; and c) the form and context in which the relevant
Competent Persons' findings are presented in this announcement have not been
materially modified from the original announcement.
The information in this report that relates to the Mineral Resource Estimate
is extracted from the announcement dated 30 August 2023 entitled 'Annual
Report 2023', which is available to view on Berkeley's website at
www.berkeleyenergia.com (http://www.berkeleyenergia.com) and is based on, and
fairly represents information compiled by Mr Enrique Martínez, a Competent
Person who is a Member of the Australasian Institute of Mining and Metallurgy.
Berkeley confirms that: a) it is not aware of any new information or data that
materially affects the information included in the original announcement; b)
all material assumptions and technical parameters underpinning the Mineral
Resource Estimate in the original announcement continue to apply and have not
materially changed; and c) the form and context in which the relevant
Competent Persons' findings are presented in this announcement have not been
materially modified from the original announcement.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.
Appendix 1: Mineral Resource at Salamanca
Deposit Resource Category Tonnes U(3)O(8) U(3)O(8)
Name (Mt) (ppm) (Mlbs)
Retortillo Measured 4.1 498 4.5
Indicated 11.3 395 9.8
Inferred 0.2 368 0.2
Total 15.6 422 14.5
Zona 7 Measured 5.2 674 7.8
Indicated 10.5 761 17.6
Inferred 6.0 364 4.8
Total 21.7 631 30.2
Alameda Indicated 20.0 455 20.1
Inferred 0.7 657 1.0
Total 20.7 462 21.1
Las Carbas Inferred 0.6 443 0.6
Cristina Inferred 0.8 460 0.8
Caridad Inferred 0.4 382 0.4
Villares Inferred 0.7 672 1.1
Villares North Inferred 0.3 388 0.2
Total Retortillo Satellites Total 2.8 492 3.0
Villar Inferred 5.0 446 4.9
Alameda Nth Zone 2 Inferred 1.2 472 1.3
Alameda Nth Zone 19 Inferred 1.1 492 1.2
Alameda Nth Zone 21 Inferred 1.8 531 2.1
Total Alameda Satellites Total 9.1 472 9.5
Gambuta Inferred 12.7 394 11.1
Salamanca Project Total Measured 9.3 597 12.3
Indicated 41.8 516 47.5
Inferred 31.5 395 29.6
Total (*) 82.6 514 89.3
Appendix 2: Summary of Mining Tenements
As at 30 June 2024, the Company had an interest in the following tenements:
Location Tenement Name Percentage Interest Status
Spain
Salamanca D.S.R Salamanca 28 (Alameda) 100% Granted
D.S.R Salamanca 29 (Villar) 100% Granted
E.C. Retortillo-Santidad 100% Granted
E.C. Lucero 100% Pending
I.P. Abedules 100% Granted
I.P. Abetos 100% Granted
I.P. Alcornoques 100% Granted
I.P. Alisos 100% Granted
I.P. Bardal 100% Granted
I.P. Barquilla 100% Granted
I.P. Berzosa 100% Granted
I.P. Campillo 100% Granted
I.P. Castaños 2 100% Granted
I.P. Ciervo 100% Granted
I.P. Conchas 100% Granted
I.P. Dehesa 100% Granted
I.P. El Águila 100% Granted
I.P. El Vaqueril 100% Granted
I.P. Espinera 100% Granted
I.P. Horcajada 100% Granted
I.P. Lis 100% Granted
I.P. Mailleras 100% Granted
I.P. Mimbre 100% Granted
I.P. Pedreras 100% Granted
E.P. Herradura* 100% Granted
Cáceres I.P. Almendro 100% Granted
E.C. Gambuta 100% Pending^
I.P. Ibor 100% Granted
I.P. Olmos 100% Granted
Badajoz I.P. Los Bélicos 100% Granted**
I.P.A. Ampliación Los Bélicos 100% Pending**
Ciudad Real I.P.A. La Majada 100% Pending**
*An application for a 1-year extension at E.P. Herradura was previously
rejected however this decision has been appealed and the Company awaits the
decision regarding its appeal.
^The Company has applied for an Exploitation Concession from the existing IP
Almendro.
**Exploracion de Recuros Minerales S.L.U (ERM), a wholly owned subsidiary of
the Company, has entered into a Tenement Sale and Purchase Agreement and
Royalty Deed with COPROMI, to acquire IP Los Bélicos, IPA Ampliación Los
Bélicos, and IPA La Majada.
Appendix 3: Related Party Payments
During the quarter ended 30 June 2024, the Company made payments of $171,000
to related parties and their associates. These payments relate to existing
remuneration arrangements (director and consulting fees plus statutory
superannuation).
Appendix 4: Exploration and Mining Expenditure
During the quarter ended 30 June 2024, the Company made the following payments
in relation to exploration and development activities:
Activity A$000
Permitting related expenditure (including legal costs) 118
Radiological protection, monitoring and other assays 18
Consultants and other expenditure 57
Payment/(return) of VAT and other social taxes in Spain (275)
Total as reported in the Appendix 5B (82)
There were no mining or production activities and expenses incurred during the
quarter ended 30 June 2024.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
Berkeley Energia Limited
ABN Quarter ended ("current quarter")
40 052 468 569 30 June 2024
Consolidated statement of cash flows Current quarter Year to date
$A'000
(12 months)
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for 82 (2,212)
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (371) (1,239)
(e) administration and corporate costs (181) (1,067)
1.3 Dividends received (see note 3) - -
1.4 Interest received 885 3,452
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other (provide details if material) (76) (212)
(a) Business Development (122) (206)
(b) Arbitration related expenses
1.9 Net cash from / (used in) operating activities 217 (1,484)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) exploration & evaluation - -
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing activities - -
3. Cash flows from financing activities - -
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt - -
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities - -
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 78,187 78,776
4.2 Net cash from / (used in) operating activities (item 1.9 above) 217 (1,484)
4.3 Net cash from / (used in) investing activities (item 2.6 above) - -
4.4 Net cash from / (used in) financing activities (item 3.10 above) - -
4.5 Effect of movement in exchange rates on cash held (1,059) 53
4.6 Cash and cash equivalents at end of period 77,345 77,345
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash
$A'000
$A'000
flows) to the related items in the accounts
5.1 Bank balances 77,345 78,137
5.2 Call deposits 50 50
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 77,345 78,187
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included (172)
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements
$A'000
$A'000
available to the entity.
Add notes as necessary for an understanding of the sources of finance
available to the entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other (please specify) - -
7.4 Total financing facilities - -
7.5 Unused financing facilities available at quarter end -
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
Not
app
lic
abl
e
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) 217
8.2 (Payments for exploration & evaluation classified as investing activities) -
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) 217
8.4 Cash and cash equivalents at quarter end (item 4.6) 77,345
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 77,345
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) >10
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7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer: Not applicable
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer: Not applicable
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer: Not applicable
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 31 July 2024
Authorised by: Company Secretary
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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