UK-based, Berkeley Energia
(ASX:BKY), has signed a Letter of Intent to sell its first 1 million pounds of uranium. Currently, it is a non-binding agreement with European-based commodity trading company called ‘Interalloys Trading’. The uranium sales would happen over a 5 year period, and will be sourced from Berkeley’s Salamanca mine in western Spain.
The company is expecting the average sale price to be above US$41 per pound of uranium – compared with the much lower, current spot price of US$25 per pound.
Berkeley believes that uranium prices will remain flat in the near-term, but from 2018, expects prices to rise when Salamanca is scheduled to come into production.
The company is also still in discussion with Interalloy to progress the non-binding Agreement into an offtake contract by the end of the year.
Berkeley reported a net loss of $5.8 million at 31 December 2015.
