Berkeley Energia's (BKY) description of its Salamanca project in Western Spain as the world's "only major new uranium mine" under development should not light up investor eyes, per se. After all, uranium only adds extreme political and price volatility to the roll call of risks inherent to any natural resources investment. But we're prepared to make the argument for Berkeley, because its key project has a strong answer for almost any question one can throw at it.
- Huge discount to risked NPV
- Encouraging offtake agreements
- Growing global demand for uranium
- Potential for further deposits
- Uranium price volatilitysw
- Project development and funding risk
Manageable capital and operating costs? Possibly the lowest anywhere, and profitable even at today's historically weak uranium prices. A stable permitting regime? Yes, with huge local and national backing further cemented by the European Union's desire for secure, homegrown sources of nuclear material. Capital market support for the miner's funding needs? Affirmative, if November's oversubscribed $30m (£23.9m) placing at 45p a share is any indication.