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anglo pacific group plc

Salamanca, the only major new uranium mine being developed in the world today

In July 2016 Berkeley published the results of a Definitive-Feasibility Study confirming that the Salamanca project will be one of the world’s lowest cost producers, capable of generating strong after tax cash flows through the current low point in the uranium cycle.

The project has a Net Present Value of US$531.9 million  with an internal rate of return of 60% based on a discount rate of 8%.

The Definitive Feasibility Study has reported that over an initial ten year period the project is capable of producing an average of 4.4 million pounds of uranium per year at a cash cost of US$13.30 per pound and a total cash cost of US$15.06 per pound during steady state which compares with the current spot price of US$20 per pound and term contract price of US$41 per pound.

With operating costs almost exclusively in Euros and a revenue stream in US dollars the project is expected to continue to benefit from the effects of deflationary pressures within the EU.

Anglo Pacific Group plc (LON:APF) has a 1% life of mine NSR royalty on the Salamanca uranium project located in Spain and operated by ASX-listed Berkeley Energia Limited (‘Berkeley’). The project consists of four main deposits (Retortillo, Alameda, Zona 7 and Gambuta) and is located in Salamanca Province, Spain, approximately 250km west of Madrid.

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.