Berkeley plunges on Spain permit uncertainty

17th October 2018 By: Mariaan Webb - Creamer Media Senior Researcher and Deputy Editor Online

Berkeley plunges on Spain permit uncertainty

The stock of triple listed Berkeley Energia plunged on Wednesday, after news reports that the Spanish government has decided not to issue the permits needed for its Salamanca uranium mine.

Berkeley, which on Monday alerted investors to a delay in receiving an urbanisation licence, traded nearly 30% down on the ASX on Wednesday at A$0.34 a share and fell 45% on the main market of the LSE to 14.25p a share.

In Madrid, Berkeley’s share price fell 10% on Tuesday and continued its decline on Wednesday with a 22% drop.  

Citing anonymous sources, news organisation Reuters reported on Tuesday that the new socialist government would not approve the licences required for the opencast mine and stated that the operation was unlikely to ever see the light of day.

Berkeley said in its quarterly report on Monday that the timing of the urbanisation licence was uncertain and, as a result, it had initiated a cost reduction programme, focusing on local and corporate costs, as well as sponsorship arrangements.

The Australian company is hoping to build a mine capable of producing 4.4-million pounds a year over a ten-year period.