BERKELEY ENERGIA
LIMITED
Interim Financial Report for
the Half Year Ended 31 December 2023
Informe financiero
provisional correspondiente al semestre terminado el 31 de
diciembre de 2023
abn 40 052 468
569
CORPORATE
DIRECTORY | DIRECTORIO CORPORATIVO
Directors
Mr Ian
Middlemas
Chairman Mr
Robert Behets
Acting Managing Director
Mr
Francisco Bellón
Executive Director
Mr Adam Parker
Non-Executive Director
Company
Secretary
Mr Dylan Browne
Spanish
Office
Berkeley
Minera España, S.A.
Carretera
SA-322, Km 30
37495
Retortillo
Salamanca
Spain
Telephone:
+34 923 193 903
London
Office
Unit 3C,
Princes House
38 Jermyn
Street
London SW1Y
6DN, United Kingdom
Registered
Office Level 9, 28 The
Esplanade
Perth WA 6000
Australia
Telephone:
+61 8 9322 6322
Facsimile: +61 8 9322
6558
Website
www.berkeleyenergia.com
Email
info@berkeleyenergia.com
Auditor
Spain
Ernst &
Young España
Australia
Ernst and
Young Australia - Perth
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Solicitors
Spain
Herbert
Smith Freehills,
S.L.P
United
Kingdom
Simmons
& Simmons LLP
Australia
Thomson
Geer
Bankers
Spain
Santander
Bank
Australia
National
Australia Bank Ltd
Australia
and New Zealand Banking Group Ltd
Share Registry
Spain
Iberclear
Plaza de la
Lealtad, 1
28014
Madrid, Spain
United
Kingdom
Computershare Investor Services PLC
The
Pavilions, Bridgewater Road, Bristol BS99 6ZZ
Telephone:
+44 370 702 0000
Australia Computershare Investor
Services Pty Ltd
Level 17,
221 St Georges Terrace
Perth
WA 6000
Telephone: +61 8 9323 2000
Stock Exchange
Listings Spain Madrid, Barcelona, Bilboa
and Valencia Stock Exchanges (Code: BKY)
United
Kingdom London Stock Exchange -
Main Board(LSE Code: BKY)
Australia
Australian Securities Exchange (ASX Code: BKY)
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CONTENTS | CONTENIDO
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Directors' Report
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Directors' Declaration
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Consolidated Statement of Profit or Loss and Other
Comprehensive Income
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Consolidated Statement of Financial
Position
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Consolidated Statement of Changes in
Equity
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Consolidated Statement of Cash
Flows
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Condensed Notes to the Financial
Statements
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Auditor's Independence
Declaration
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Auditor's Review Report
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The Board of Directors of Berkeley
Energia Limited present their report on the consolidated entity of
Berkeley Energia Limited ("the Company" or "Berkeley") and the
entities it controlled during the half year ended 31 December 2023
("Consolidated Entity" or "Group").
DIRECTORS
The names of the Directors of
Berkeley in office during the half year and until the date of this
report are:
Mr Ian
Middlemas
Chairman
Mr Robert
Behets
Non-Executive Director (Acting Managing Director)
Mr
Francisco Bellón
Executive
Director
Mr Adam
Parker
Non-Executive Director
Unless otherwise disclosed,
Directors were in office from the beginning of the half year until
the date of this report.
OPERATING AND FINANCIAL
REVIEW
Summary
Summary for and subsequent to the
half year end include:
·
Project
Update
During the period, Berkeley received
formal notifications from the High Court of Justice of Castilla y
León ("TSJ") which upheld the 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 Authorization of
Exceptional Use of the Land ("AEUL") and the Urbanism Licence
("UL"), and annules both the AEUL and UL.
The AEUL and the UL were granted to
the Company 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 TSJ, with the TSJ delivering judgements
in December 2023 to revoke the first instance judgements and
declare the AEUL and the UL null.
The Company strongly disagrees with
the fundamentals of the TSJ's judgement and has submitted appeals
against the TSJ judgements before the Supreme Court under Spanish
law to defend its position and take all necessary actions to
preserve its rights.
The Company also previously
submitted a contentious-administrative appeal before the Spanish
National Court following notification from the Ministry for
Ecological Transition and the Demographic Challenge ("MITECO") in
relation to the rejection of the administrative appeal filed by the
Company against MITECO's rejection of the Authorisation for
Construction for the uranium concentrate plant as a radioactive
facility ("NSC II") at the Salamanca project.
Whilst the Company's focus is on
resolving the current permitting situation, and ultimately
advancing the Salamanca project towards production, the Company
will continue to strongly defend its position and take all
necessary actions to preserve its rights.
·
Global Nuclear
Power and Uranium Market:
Spot uranium prices continued to
demonstrate extreme upside as the near-term price indicator
increased by 27% during the period and ended December at US$91 per
pound. In January 2024 the uranium price surpassed US$100 per pound
and is currently ~US$100 per pound.
Price indicators reflecting the
longer-term uranium market strengthened over the period as the
3-year forward price increased to US$96 per pound with the 5-year
forward price increasing to US$101 per pound by the end of
December. The Long-Term Price continued to rise incrementally
reaching US$68 per pound at the end of December.
The outlook for nuclear power and the
uranium market continued to strengthen during the period, with a
number of important recent developments, including:
·
European
Union
o The
European Parliament adopted its official position on the proposed
Net-Zero Industry Act ("NZIA"), which is designed to support
Europe's manufacturing output in technologies needed for
decarbonisation. The Members of the European Parliament included
nuclear fission and fusion amongst the list of 17 technologies
addressed by the legislation.
o The
NZIA sets a target for Europe to produce 40% of its annual
deployment needs in net zero technologies by 2030 and to capture
25% of the global market value for these technologies.
o In
response to calls from the nuclear industry, research community and
nuclear safety regulators, the European Commission will establish
an Industrial Alliance dedicated to small modular reactors in early
2024, the European Commissioner for Energy announced.
o The
European Investment Bank's new president has signalled openness to
fund new nuclear projects. In an interview with the Financial
Times, Nadia Calviño, a former Spanish economy minister who took
over the EIB presidency last month, said Europe "needs to be active
because [it] cannot be behind the curve" on "modular reactors",
which are still in a research and development stage in the
bloc.
·
International
Energy Agency
o The
general director of the International
Energy Agency ("IEA") has said that nuclear energy works in an
"impeccable way" and that countries planning to leave the sector,
such as Spain and Germany, should "think twice" since the
alternatives increase polluting emissions or dependence on third
parties.
·
COP28
o During the World Climate Action Summit of the 28th Conference
of the Parties to the U.N. Framework Convention ("COP28"), more
than 20 countries lead by the United States, France, Japan Republic
of Korea, United Arab Emirates and the United Kingdom, launched the
Declaration to Triple Nuclear Energy. The Declaration "recognises
the key role of nuclear energy in achieving global net-zero
greenhouse gas emissions by 2050 and keeping the 1.5-degree goal
within reach."
·
Sweden
o The
Swedish government presented its climate policy action plan to meet
net zero by 2045. The climate action plan contains some 70
"concrete proposals" to achieve emission reductions in all sectors
and says "expanded nuclear power is the single most important
measure" to reduce emissions through electrification, with the
government's recently published roadmap for new nuclear "one
crucial piece of the puzzle.
The government also tabled a
proposed amendment to the country's nuclear energy regulations
(Environmental Code) which would remove the current stipulation
that any new nuclear reactor can only be authorized if it replaces
a permanently closed reactor and must be built on a site where one
of the existing reactors is located. The recently-elected
government is also pursuing legislation which would address the
potential development of small modular reactors.
o Sweden's Climate and Environment Minister announced the launch
of an investigation to abolish the country's ban on uranium mining.
The ministry said the purpose of the investigation is "to remove a
ban that is not needed". "Extraction of uranium must be handled in
the same way as extraction of other metals, where the environmental
assessment determines the conditions under which it can be
permitted," it noted. "If the European Union is to become the first
climate-neutral continent, access to sustainable metals and
minerals must be ensured," the Climate and Environment Minister
said. The result of the investigation must be reported by 15 May at
the latest, at which point the government can choose to proceed
with a legislative proposal to parliament to lift the ban on
uranium mining
·
U.S.A
o In
December 2023, the U.S. House of Representatives passed the
"Prohibiting Russian Uranium Imports Act (H.R. 1042). If enacted,
the bill would ban Russian uranium imports 90 days after enactment,
but would allow individual utilities to request a waiver from the
U.S. Department of Energy if there are no other viable fuel sources
available to support the operation of a specific nuclear reactor or
nuclear company. A companion bill must now be passed by the U.S.
Senate before the legislation can be signed into law by President
Biden.
·
Balance
Sheet
The Company is in a strong financial
position with A$75 million in cash reserves and no debt.
Operations
Salamanca Project
Summary
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 2021, the Company received formal
notification from MITECO that it had rejected the NSC II
application at Salamanca. This decision followed the unfavourable
NSC II report issued by the NSC in July 2021.
Berkeley strongly refutes the NSC's
assessment and, in the Company's opinion, the NSC has adopted an
arbitrary decision with the technical issues used as justification
to issue the unfavourable report lacking in both technical and
legal support.
Berkeley submitted documentation,
including an 'Improvement Report' to supplement the Company's
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 the Company, with strongly
supported arguments, dismantled all of the technical issues used by
the NSC as justification to issue the unfavourable report. The
Company 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, the Company 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 the Company following
receipt of these files, it is clear that Berkeley, 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, the Company considers that the
NSC has acted in a discriminatory and arbitrary manner when
assessing the NSC II application for the Salamanca
project.
In Berkeley's strong opinion, MITECO
has rejected the Company'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 the Company.
In this regard, the Company believes
that MITECO have infringed regulations on administrative procedures
in Spain but also under protection afforded to Berkeley under the
Energy Charter Treaty ("ECT"), which would imply that the decision
on the rejection of the Company's NSC II Application is not
legal.
In April 2023, the Company's wholly
owned Spanish subsidiary, Berkeley Minera España ("BME") submitted
a contentious-administrative appeal before the Spanish National
Court in an attempt to overturn the MITECO decision denying NSC
II.
Whilst the Company's focus is on
resolving the current permitting situation, and ultimately
advancing the Salamanca project towards production, the Company and
BME will continue to strongly defend its position and take all
necessary actions to preserve its rights.
Initiation of the
contentious-administrative appeal is necessary to preserve BME's
rights however, the Company reiterates that it is prepared to
collaborate with the relevant authorities and remains hopeful that
the permitting situation can be resolved amicably.
in December 2023, the TSJ delivered
adverse judgements and declared the AEUL and the UL null. The
Company strongly disagrees with the fundamentals of the TSJ's
judgements and has submitted cassation appeals against the TSJ
judgements before the Supreme Court under Spanish law.
Project
Update
During the period, the Company
continued with its commitment to health, safety and the environment
as a priority.
![Text Description automatically generated](https://dw6uz0omxro53.cloudfront.net/2990038/ace123ff-56b2-4ba8-94d7-a79de6f1e8d7.gif)
Following the annual Internal Audit
(IA) of the Environmental and Sustainable Mining Management Systems
completed in the September quarter, AENOR, an independent Spanish
institution, completed the External Audit ("EA") during
November 2023.
The EA successfully verified that the
Company's management system complies with the requirements of ISO
Standards 14001:2015 "Environmental Management" and UNE
22480/70:2019 "Sustainable Mining Management", and remains
implemented in an adequate and effective manner.
The conclusions of the EA highlighted
the significant progress made towards achievement of the Company's
2023 Sustainability Goals including involvement in the management system at all levels of the
organisation and the integration of Sustainable Development Goals (SDGs) into the
Company's strategy.
The certification process to obtain
ISO 45001 certification for Health and Safety Management is
ongoing, with the internal audit and the integration of the SDGs
into the Company's strategy being successfully
completed.
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 period.
The Project's location has a natural
abundance of sunlight which is conducive to solar power generation,
which will become a reliable source of low cost and carbon-free
energy for the Project. In addition to making a significant
contribution to reduce carbon emissions, the proposed solar power
system will potentially contribute to reducing the Project's power
related operating costs.
The proposed facility will have an
installed power of 20.1MW and will be able to supply up to 75% of
the power requirements at the Project. There is flexibility with
regard to storage capacity versus capital and operational costs to
ensure the optimal outcome for the Project.
The engineering, design, and cost
estimation workstreams were completed and the overall project was
delivered during the period. The environmental studies are well
advanced, and once the scope of the environmental document is
confirmed by the Administration, the Environmental Assessment will
be formally submitted.
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 period, 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 uranium 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 ~31km2 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 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), cesium (Cs), niobium (Nb) and tantalum (Ta) obtained
from multi-element analysis of drill samples were reported in the
March 2023 quarter.
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).
Mineralogical studies have been
undertaken on 25 samples from the drilling at ALS Laboratories
(Perth, Australia) and the University of Oviedo (Oviedo, Spain), to
determine the mineral species present and understand their
characteristics and properties.
The results of the mineralogical
study carried out by ALS Laboratories on the samples of mineralised
muscovitic leucogranite indicate they are 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%.
Based on the conclusions of the
studies carried out at the University of Oviedo, IP Conchas
demonstrates exploration potential for several critical and
strategic raw materials included in the European Commission's
Critical Raw Materials Act1, particularly Li, Nb and Ta.
Results from the mineralogical study report conclude that the
Li-bearing minerals in the mineralised leucogranite are mainly
Li-rich muscovites.
The Department of Geology at the
Universidad del País Vasco (Spain) has also undertaken an optical
mineralogy and petrography study on thin sections from six samples
collected from surface outcrops of the Conchas mineralisation. Four
of the collected samples are representative of the main muscovitic
leucogranite and two are the same leucogranite but completely
greisenised. The study concludes that among the mineral phases
identified within the leucogranite and greisen samples, the micas
can be considered as aluminum-rich micas and they are the only
minerals to contain Li. The micas also hosting the highest contents
of Rb and Cs.
The Company is currently advancing
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.
Figure 1: IP Conchas
Location Plans and Geology / Drill Hole Location
Plan
![Diagram Description automatically generated](https://dw6uz0omxro53.cloudfront.net/2990038/95f74667-5392-44c0-94fa-d46f0707d56a.gif)
Figure 2: IP Conchas Cross
Section A-A1
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 and communicated with the relevant
authorities to progress the pending grant of the Investigation
Permits for two of tenements.
Permitting
During the period, the Company
received formal notifications from the TSJ which upheld the 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
AEUL and the UL, and annules both the AEUL and UL.
The AEUL and the UL were granted to
the Company 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 TSJ, with the TSJ delivering judgements to revoke the
first instance judgements and declare the AEUL and the UL
null.
The Company strongly disagrees with
the fundamentals of the TSJ's judgement and it has submitted
cassation appeals against the TSJ judgements before the Supreme
Court under Spanish law to defend its position and take all
necessary actions to preserve its rights.
Given the current permitting
situation at the Salamanca project, the Company applied for, and
has been granted, a temporary suspension of activity work at the
C.E Retortillo-Santidad ('Retortillo mining licence') by the
regional mining authorities, whilst the NSC II related and
abovementioned appeals processes are ongoing. All environmental,
health and safety measures will continue to be maintained by the
Company.
Spanish Politics
Following a failed vote in Congress
for the Partido Popular (PP) leader, Alberto Núñez Feijóo, to
become Prime Minister in September 2023, the Spanish Socialist
Workers' Party (PSOE) leader, Pedro Sánchez, won parliamentary
support during the period to be re-elected as Spain's Prime
Minister, after striking a controversial agreement with Catalan
separatists.
In exchange for supporting Sanchez's
PSOE, nationalists from the Spanish region of Catalonia secured a
commitment from the PSOE to pass an amnesty law that would pardon
those linked to a failed Catalan bid for independence six years
ago. PSOE also struck controversial agreements with other
nationalist parties, including from the Basque Country, to secure
their support.
Additional Information on the Global Nuclear Power and Uranium
Market
The outlook for nuclear power and the
uranium market continued to strengthen during the period, with
several important recent developments, including:
·
The International Atomic Energy Agency ("IAEA")
released its latest nuclear power forecast up to 2050. The
international nuclear regulatory agency now foresees a high case
installed nuclear generating capacity in 2050 of 890GWe (compared
with today's 369GWe), an increase over the 2020 forecast of
24%.
Large-scale reactors remain the
dominant form of nuclear power in all scenarios, including advanced
reactor designs, but the development of and growing interest in
small modular reactors increases the potential for nuclear
power.
·
The Swedish government unveiled a roadmap which
envisages the construction of new nuclear generating capacity
equivalent to at least two large-scale reactors by 2035, with up to
ten new large-scale reactors coming online by 2045.
The parliament subsequently approved
a bill that will clear the way for new nuclear power in the country
by removing the current limit on the number of nuclear reactors in
operation, as well as allowing reactors to be built on new sites.
The amendment entered into force on 1 January 2024.
Sweden and France also signed a
declaration of intent to develop long-term cooperation in the field
of nuclear energy.
·
Norsk Kjernkraft, submitted a proposal to Norway's
Ministry of Oil and Energy for an assessment into the construction
of a power plant based on multiple small modular reactors in the
municipalities of Aure and Heim. The company said it marks the
first formal step towards the possible construction of the
country's first nuclear power plant. Once approved by the
government agency, the environmental impact assessment phase could
begin.
·
Slovenia's Ministry of the Environment, Climate
and Energy presented a draft resolution on the long-term peaceful
use of nuclear energy in the country, which envisages long-term use
of nuclear energy, a second reactor at the Krško nuclear power
plant and a secure electricity supply through a mix of nuclear and
renewable energy sources, the Slovenian Press Agency
reported.
·
The Estonian government's Nuclear Energy Working
Group concluded that introducing nuclear energy to the country
would help to meet climate goals and increase energy security, with
small modular reactors deemed to be the most suitable for the
country.
·
The Council of Ministers of Bulgaria have approved
the construction of two additional reactors. The target date for
commercial operation of the first reactor is set at 2033 while the
second reactor would follow 2-3 years later. The planned capacity
of the two reactors will total 2,300MWe.
·
The British government launched a roadmap for
reaching its ambition for the UK to have 24GWe of nuclear
generating capacity by 2050, representing about 25% of the
country's projected electricity demand.
·
The EURATOM Supply Agency ("ESA") distributed its
Annual Report for 2022 which documents various aspects of the
nuclear fuel cycle within the European Union.
According to the ESA's survey of the
103 reactors operating in 13 Member Countries as of the end of
2022, future uncovered uranium requirements through 2031 range from
a minimum of 51.9 million pounds (assuming all current supply
agreements are honoured) and a maximum of 87.5 million pounds
(assuming Russian-sourced agreements are not completed as
scheduled).
Total uranium inventories held by EU
utilities at the end of 2022 approximated 92.8 million pounds, a
decrease from the aggregate inventories held at the end of 2021
(95.7 million pounds).
During 2022, the purchases of
Russian-origin uranium declined by 16% to 5.2 million pounds as
compared to 2021 buying levels.
·
Kazatomprom released its September 2023 quarter
Operations and Trading Update, which reported a slight decline in
Kazakh uranium production for the first nine months of the year
(2023 - 39.8 million pounds. compared to 2022 - 40.2 million
pounds), but reconfirming the 2023 guidance at 53.3 - 55.9 million
pounds. However, the world's largest producer of uranium cautioned
that "issues associated with limited access to certain key
materials, such as sulfuric acid, remain persistent, and might
potentially have a negative impact on 2024 production."
·
Orano took the decision to expand uranium
enrichment capacity at the Georges Besse 2 Uranium Enrichment
Plant, located at Tricastin, France. The facility entered operation
in 2011 reaching its current full production capacity of 7.5
million Separative Work Units (SWU) in 2016, based on centrifuge
technology. The Orano Board approved the planned expansion of 2.5
million SWU at a cost of €1.7 billion.
Results of Operations
The net loss of the Consolidated
Entity for the half year ended 31 December 2023 was $3,451,000 (31
December 2022: $849,000). Significant items contributing to the
current half year loss and the substantial differences from the
previous half year include the following:
(i)
Interest income of $1,668,000
(31 December 2022: $268,000), this is largely attributable to the increase in
interest rates from 0.0% to 4.6% on the US$49 million held in cash
by the Company;
(ii)
Exploration and evaluation
expenses of $1,897,000 (31 December 2022: $1,494,000), which are
attributable to the Group's accounting policy of expensing
exploration and evaluation expenditure incurred subsequent to the
acquisition of the rights to explore and up to and until a decision
to develop or mine is made;
(iii)
Non-cash share-based payment expense of $437,000
(31 December 2022: $374,000) was recognised in respect of incentive
securities granted to directors, employees and key consultants of
the Group as part of the long-term incentive plan to reward
directors, employees and key consultants for the long-term
incentive of the Group. The Company's policy is to expense the
incentive securities over the vesting period. During the period the
Company issued 1,900,000 (31 December 2022: nil) incentive options
("Incentive Options") which relates to the current period
expense;
(iv)
Fair value movement gain of $251,000 (31 December
2022: gain of $633,000) on unlisted options that expired during the
period. These financial liabilities increase or decrease in size as
the share price of the Company fluctuates. During the period,
25,221,562 (31 December 2022: 10,088,625) unlisted options expired;
and
(v)
Foreign exchange loss of
$2,304,000 (31 December 2022: gain of $1,220,000) largely
attributable on the US$49 million held in cash by the Group
following the strengthening of the AUD against the USD by some 3%
during the half year period.
Financial Position
At 31 December 2023, the Group is in
a strong financial position with cash reserves of $75,134,000 (30
June 2023: $78,776,000). The Company had cash outflows during the
year totalling $1,350,000, plus a foreign exchange loss of
$2,292,000 following the movement of the AUD against the USD by
some 3% during the period.
The Group had net assets of
$84,121,000 at 31 December 2023 (30 June 2023: $87,316,000), a
decrease of 3.8% compared with 30 June 2023. The decrease is
consistent with the decrease in cash which has been offset by the
decrease in total liabilities.
Business Strategies and Prospects
for Future Financial Years
Berkeley's strategic objective is to
create long-term shareholder value with the Company's primary focus
continuing to be on progressing the approvals required to commence
construction of the Salamanca mine and bring it into
production.
To achieve its strategic objective,
the Company currently has the following business strategies and
prospects:
·
Continue in the defence of
the Company's rights with respect to the Salamanca
project;
·
Continue to assess other
business development and investment opportunities at the Salamanca
project; and
·
Continue to assess other
business and development opportunities in the resources
sector.
All of these activities are
inherently risky and the Board is unable to provide certainty that
any or all of these activities will be able to be achieved. The
material business risks faced by the Company that are likely to
have an effect on the Company's future prospects, and how the
Company manages these risks, include but are not limited to the
following:
·
Litigation
risk - All industries, including the
mining industry, are subject to legal and arbitration claims.
Specifically, in November 2022, the Company submitted a written notification of an investment dispute to
the Prime Minister of Spain and the MITECO informing the Kingdom of
Spain of the nature of a dispute and the ECT breaches relating to
the Company's rejection of NSCII, and that it proposes to seek
prompt negotiations for an amicable solution pursuant to article
26.1 of the ECT. The Company remains open to resolving the dispute
with the Spanish government amicably, however, as of the date of
this report, the Spanish government has declined to participate in
any discussions related to the dispute and as a result
Berkeley will continue to strongly defend its
position and take relevant actions to pursue its legal rights
regarding the Salamanca project. However, there is no certainty
that any claim, should it be made in the future, will be
successful.
·
Mining licences
and government approvals required -
In 2021, received formal notification from MITECO that it had
rejected the NSC II application at the Salamanca project. This
decision followed the unfavourable NSC II report issued by the NSC
in July 2021.
Berkeley strongly refutes the NSC's
assessment and, in the Company's opinion, the NSC has adopted an
arbitrary decision with the technical issues used as justification
to issue the unfavourable report lacking in both technical and
legal support.
Berkeley submitted documentation,
including an 'Improvement Report' to supplement the Company's
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 the Company, with strongly
supported arguments, dismantled all of the technical issues used by
the NSC as justification to issue the unfavourable report. The
Company 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, the Company 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 the Company following
receipt of these files, it is clear that Berkeley, 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, the Company considers that the
NSC has acted in a discriminatory and arbitrary manner when
assessing the NSC II application for the Salamanca
project.
In Berkeley's strong opinion, MITECO
has rejected the Company'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 the Company.
In this regard, the Company believes
that MITECO have infringed regulations on administrative procedures
in Spain but also under protection afforded to Berkeley under the
ECT, which would imply that the decision on the rejection of the
Company's NSC II Application is not legal.
In April 2023, the Company's wholly
owned Spanish subsidiary, BME submitted a
contentious-administrative appeal before the Spanish National Court
in an attempt to overturn the MITECO decision denying NSC
II.
Whilst the Company's focus is on
resolving the current permitting situation, and ultimately
advancing the Salamanca project towards production, the Company and
BME will continue to strongly defend its position and take all
necessary actions to preserve its rights.
Initiation of the
contentious-administrative appeal was necessary to preserve BME's
rights however, the Company reiterates that it is prepared to
collaborate with the relevant authorities and remains hopeful that
the permitting situation can be resolved amicably.
Further, Berkeley received formal
notifications from the TSJ in December 2023 which upheld the
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
Authorization of AEUL and the UL, and annules both the AEUL and
UL.
The AEUL and the UL were granted to
the Company 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 TSJ, with the TSJ delivering judgements
in December 2023 to revoke the first instance judgements and
declare the AEUL and the UL null.
The Company strongly disagrees with
the fundamentals of the TSJ's judgement and has submitted cassation
against the TSJ judgements before the Supreme Court under Spanish
law to defend its position and take all necessary actions to
preserve its rights. However, there is no guarantee that the
cassation appeals will be admitted by the Supreme Court or be
successful.
Further, various appeals and adverse
judgements have also been made against other permits and approvals
(such as the waste water discharge permit) the Company had
previously received for the Salamanca project, as allowed for under
Spanish law. The Company expects that further appeals will be made
against these and any future permits and approvals.
However, the successful development
of the Salamanca mine will be dependent on the granting, or
re-granting of all permits and licences necessary for the
construction and production phases, in particular the grant of NSC
II, UL and AEUL which will allow for the construction of the plant
as a radioactive facility.
However, with any development
project, there is no guarantee that the Company will be successful
in applying for and maintaining all required permits and licences
to complete construction and subsequently enter into production. If
the required permits and licences are not granted, or are granted,
appealed against and withdrawn (as in the case of the UL, AEUL and
surface water capture and waste water discharge permits), then this
could have a material adverse effect on the Group's financial
performance, which has led to a reduction in the carrying value of
assets which may materially jeopardise the viability of the
Salamanca project and the price of its ordinary shares.
·
The Company may
not successfully acquire new projects - In conjunction with seeking to overturn the negative MITECO
and TSJ decisions, the Company is also searching for and assessing
other new business opportunities at the Salamanca project, as
well as new business opportunities in the resources sector which
could have the potential to build shareholder value. These new
business opportunities may take the form of direct project
acquisitions, joint ventures, farm-ins, acquisition of
tenements/permits, or direct equity participation.
The Company's success in its
acquisition activities depends on its ability to identify suitable
projects, acquire them on acceptable terms, and integrate the
projects successfully, which the Company's Board is experienced in
doing. However, there can be no guarantee that any proposed
acquisition will be completed or be successful and the Directors
are not able to assess the likelihood or timing of a successful
acquisition. If a proposed acquisition is completed the usual risks
associated with a new project and/or business activities will
remain. Further, any new acquisition may require the establishment
of a new business. The Company's ability to generate revenue from a
new business will depend on the Company being successful in
exploring, identifying mineral resources and establishing mining
operations in relation to a new project. Whilst the Directors have
extensive industry experience, there is no guarantee that the
Company will be successful in exploring and developing a new
project;
·
The Company's
activities are subject to Government regulations and approvals
- The Company's exploration and any
future mining activities are dependent upon the maintenance and
renewal from time to time of the appropriate title interests,
licences, concessions, leases, claims, permits, environmental
decisions, planning consents and other regulatory consents which
may be withdrawn or made subject to new limitations. The
maintaining or obtaining of renewals or attainment and grant of
title interests often depends on the Company being successful in
obtaining and maintaining required
statutory approvals for its proposed activities. The mining licence
for the Salamanca Project was granted in April 2014 and is valid
until April 2044 (and renewable for two further periods of 30 years
each). Given the current permitting situation at the Salamanca
project, the Company applied for, and has been granted a temporary
suspension of activity work at the Retortillo mining licence by the
regional mining authorities, whilst the NSC II related and
abovementioned appeals processes are ongoing.
The Company closely monitors the
status of its mining and exploration permits and licences and works
closely with the relevant government departments in Spain (as
discussed above) to ensure the various licences are maintained and
renewed when required. However, there is no assurance that such
title interests, licenses, concessions, leases, claims, permits,
decisions or consents will not be revoked, significantly altered or
not renewed to the detriment of the Company or that the renewals
and new applications will be successful.
If such title interests, licences,
concessions, leases, claims, permits, environmental decisions,
planning consents and other regulatory consents are not maintained
or renewed then this could have a material adverse effect on the
Company's financial performance and the price of its Ordinary
Shares.
There can also be no assurances that
the Company's interests in its properties and licences are free
from defects. The Company has investigated its rights and believes
that these rights are in good standing. There is no assurance,
however, that such rights and title interests will not be revoked
or significantly altered to the detriment of the
Company.
In April 2021, the parliament in
Spain (the "Spanish Parliament") 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 Spanish Parliament 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.
The Company 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. This
could create uncertainty and pose a risk on future applications,
renewals or proceedings the Company may have to make in the future
at the Salamanca project or elsewhere, which if unfavourable could
have a detrimental effect on the viability of the Salamanca project
or the Company's pursuit of other development
opportunities.
Therefore, there can be no
assurances that the Company's rights and title interests will not
be challenged or impugned by third parties or governments in the
future. To the extent that any such rights or title interests are
revoked or significantly altered to the detriment of the Company,
then this could have a material adverse effect on the Group's
financial performance and the price of its ordinary
shares;
·
The Company may
be adversely affected by fluctuations in commodity prices
- The price of uranium has
fluctuated widely since the Fukushima nuclear power plant disaster
in March 2011 and is affected by further numerous factors beyond
the control of the Company. Future production, if any, from the
Salamanca project will be dependent upon the price of uranium being
adequate to make these properties economic. The Company currently
does not engage in any hedging or derivative transactions to manage
commodity price risk, but as the Company's Salamanca Project
advances, this policy will be reviewed periodically;
·
The Group's
projects are not yet in production - As a result of the substantial expenditures involved in mine
development projects, mine developments are prone to material cost
overruns versus budget. The capital expenditures and time required
to develop new mines are considerable and changes in cost or
construction schedules can significantly increase both the time and
capital required to build the mine; and
·
Global financial
conditions may adversely affect the Company's growth and
profitability - Many industries,
including the mineral resource industry, are impacted by these
market conditions. Some of the key impacts of the current financial
market turmoil include contraction in credit markets resulting in a
widening of credit risk, devaluations and high volatility in global
equity, commodity, foreign exchange and energy markets, and a lack
of market liquidity. A slowdown in the financial markets or other
economic conditions may adversely affect the Company's growth and
ability to finance its activities.
SIGNIFICANT EVENTS AFTER THE
REPORTING PERIOD
There were no significant events
occurring after balance date requiring disclosure.
ROUNDING
The amounts contained in the half
year financial report have been rounded to the nearest $1,000
(where rounding is applicable) where noted ($000) under the option
available to the Company under ASIC Corporations (Rounding in
Financial/Directors' Reports) Instrument 2016/191. The Company is
an entity to which this legislative instrument applies.
AUDITOR'S INDEPENDENCE
DECLARATION
Section 307C of the Corporations Act 2001 requires our
auditors, Ernst & Young, to provide the Directors of Berkeley
Energia Limited with an Independence Declaration in relation to the
review of the half year financial report. This Independence
Declaration is on page and forms part
of this Directors' Report.
Signed in accordance with a
resolution of Directors.
Robert Behets
Acting Managing Director
13 March 2024
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.
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
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.
Mineral Resource at the
Salamanca project
Deposit
Name
|
Resource Category
|
Tonnes
(Mt)
|
U3O8
(ppm)
|
U3O8
(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
Indicated
|
5.2
10.5
|
674
761
|
7.8
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
|
*rounding errors may occur
DIRECTORS'
DECLARATION
In accordance with a resolution of
the Directors of Berkeley Energia Limited, I state that:
In the opinion of the
Directors:
(a) the
financial statements and notes are in accordance with the
Corporations Act 2001, including:
(i)
complying with Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001; and
(ii)
giving a true and fair view of the Consolidated Entity's
financial position as at 31 December 2023 and of its performance
for the half year ended on that date.
(b) the
Directors Report, which includes the Operating and Financial
Review, provides a fair review of:
(i) important
events during the first six months of the current financial year
and their impact on the half year financial statements, and a
description of the principal risks and uncertainties for the
remaining six months of the year; and
(ii) related party
transactions that have taken place in the first six months of the
current financial year and that have materially affected the
financial position or performance of the Group during that period,
and any changes in the related party transactions described in the
last annual report that could have such a material effect;
and
(c) there
are reasonable grounds to believe that the Company will be able to
pay its debts as and when they become due and payable.
On behalf of the Board
Robert Behets
Acting Managing Director
13 March 2024
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 31 DECEMBER
2023
|
Note
|
Half Year Ended
31 December
2023
$000
|
Half Year Ended
31 December
2022
$000
|
|
|
|
|
Interest
income
|
|
1,668
|
268
|
Exploration
and evaluation costs
|
|
(1,897)
|
(1,494)
|
Corporate
and administration costs
|
|
(602)
|
(582)
|
Prospectus
preparation costs
|
|
-
|
(393)
|
Business
development expenses
|
|
(129)
|
(127)
|
Share based
payments expenses
|
9(a)
|
(437)
|
(374)
|
Fair value
movements on financial liabilities
|
5
|
251
|
633
|
Foreign
exchange movements
|
|
(2,305)
|
1,220
|
Loss before income
tax
|
|
(3,451)
|
(849)
|
Income tax
expense
|
|
-
|
-
|
Loss after income
tax
|
|
(3,451)
|
(849)
|
|
|
|
|
Other comprehensive income,
net of income tax:
|
|
|
|
Items that may be
reclassified subsequently to profit or loss:
|
|
|
|
Exchange
differences arising on translation of foreign operations
|
|
(181)
|
387
|
Other comprehensive income,
net of income tax
|
|
(181)
|
387
|
Total comprehensive loss for
the half year attributable to Members of Berkeley Energia
Limited
|
|
(3,632)
|
(462)
|
|
|
|
|
Basic and
diluted loss per share (cents per share)
|
|
(0.77)
|
(0.19)
|
The above
Consolidated Statement of Profit or Loss and Other Comprehensive
Income should be read in conjunction with the accompanying
notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
|
Note
|
31 December 2023
$000
|
30 June 2023
$000
|
|
|
|
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and
cash equivalents
|
|
75,134
|
78,776
|
Other
receivables
|
|
824
|
880
|
Total Current
Assets
|
|
75,958
|
79,656
|
|
|
|
|
Non-current
Assets
|
|
|
|
Property,
plant and equipment
|
6
|
9,420
|
9,594
|
Other
financial assets
|
|
106
|
107
|
Total Non-Current
Assets
|
|
9,526
|
9,701
|
|
|
|
|
TOTAL
ASSETS
|
|
85,484
|
89,357
|
|
|
|
|
LIABILITIES
|
|
|
|
Current
Liabilities
|
|
|
|
Trade and
other payables
|
|
799
|
1,221
|
Financial
liabilities
|
7
|
-
|
248
|
Other
liabilities
|
|
564
|
572
|
Total Current
Liabilities
|
|
1,363
|
2,041
|
|
|
|
|
TOTAL
LIABILITIES
|
|
1,363
|
2,041
|
|
|
|
|
NET ASSETS
|
|
84,121
|
87,316
|
|
|
|
|
EQUITY
|
|
|
|
Issued
capital
|
8
|
206,404
|
206,404
|
Reserves
|
9
|
(1,216)
|
(1,268)
|
Accumulated
losses
|
|
(121,067)
|
(117,820)
|
|
|
|
|
TOTAL
EQUITY
|
|
84,121
|
87,316
|
The above Consolidated Statement of
Financial Position should be read in conjunction with the
accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE
HALF YEAR ENDED 31 DECEMBER 2023
|
Issued
Capital
|
Share Based Payments
Reserve
|
Foreign Currency Translation
Reserve
|
Accumulated
Losses
|
Total
|
|
$000
|
$000
|
$000
|
$000
|
$000
|
|
|
|
|
|
|
As at 1 July
2023
|
206,404
|
613
|
(1,881)
|
(117,820)
|
87,316
|
Total comprehensive income
for the period:
|
|
|
|
|
|
Net loss
for the period
|
-
|
-
|
-
|
(3,451)
|
(3,451)
|
Other comprehensive
income/(loss):
|
|
|
|
|
|
Exchange
differences arising on translation of foreign operations
|
-
|
-
|
(181)
|
-
|
(181)
|
Total comprehensive
loss
|
-
|
-
|
(181)
|
(3,451)
|
(3,632)
|
Expiry of
Incentive Options
|
-
|
(204)
|
-
|
204
|
-
|
Recognition
of share-based payment expense
|
-
|
437
|
-
|
-
|
437
|
As at 31 December
2023
|
206,404
|
846
|
(2,062)
|
(121,067)
|
84,121
|
|
|
|
|
|
|
As at 1 July
2022
|
206,404
|
341
|
(2,528)
|
(116,584)
|
87,633
|
Total comprehensive income
for the period:
|
|
|
|
|
|
Net loss
for the period
|
-
|
-
|
-
|
(849)
|
(849)
|
Other comprehensive
income/(loss):
|
|
|
|
|
|
Exchange
differences arising on translation of foreign operations
|
-
|
-
|
387
|
-
|
387
|
Total comprehensive
income/(loss)
|
-
|
-
|
387
|
(849)
|
(462)
|
Expiry of
Incentive Options
|
-
|
(137)
|
-
|
137
|
-
|
Recognition
of share-based payment expense
|
-
|
374
|
-
|
-
|
374
|
As at 31 December
2022
|
206,404
|
578
|
(2,141)
|
(117,296)
|
87,545
|
The above Consolidated Statement of
Changes in Equity should be read in conjunction with the
accompanying notes.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE
HALF YEAR ENDED 31 DECEMBER 2023
|
Half Year Ended
31 December
2023
$000
|
Half Year Ended
31 December
2022
$000
|
|
|
|
Cash flows from operating
activities
|
|
|
Payments to
suppliers and employees
|
(3,018)
|
(2,666)
|
Interest
received
|
1,668
|
268
|
Net cash outflow from
operating activities
|
(1,350)
|
(2,398)
|
|
|
|
Net
decrease in cash and cash equivalents held
|
(1,350)
|
(2,398)
|
Cash and
cash equivalents at the beginning of the period
|
78,776
|
79,943
|
Effects of
exchange rate changes on cash and cash equivalents
|
(2,292)
|
1,315
|
Cash and cash equivalents at
the end of the period
|
75,134
|
78,860
|
The above Consolidated Statement of
Cash Flows should be read in conjunction with the accompanying
notes.
CONDENSED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER
2023
1.
REPORTING ENTITY
Berkeley Energia Limited is a
company domiciled in Australia. The interim financial report of the
Company is as at and for the six months ended 31 December
2023.
The annual financial report of the
Company as at and for the year ended 30 June 2023 is available upon
request from the Company's registered office or is available to
download from the Company's website at www.berkeleyenergia.com.
2.
STATEMENT OF COMPLIANCE
The interim financial report is a
general purpose financial report which has been prepared in
accordance with Accounting Standard AASB 134: Interim Financial Reporting and the
Corporations Act
2001.
This interim financial report does
not include all the information of the type normally included in an
annual financial report. Accordingly, this report is to be read in
conjunction with the annual report of Berkeley Energia Limited for
the year ended 30 June 2023 and any public announcements made by
Berkeley Energia Limited during the interim reporting period in
accordance with the continuous disclosure requirements of the
Corporations Act
2001.
(a)
Basis of Preparation of Half Year Financial
Report
The amounts contained in the half
year financial report have been rounded to the nearest $1,000
(where rounding is applicable) under the option available to the
Company under ASIC Corporations (Rounding in Financial/Directors'
Reports) Instrument 2016/191.
The financial statements have been
prepared on the going concern basis, which contemplates the
continuity of normal business activity and the realisation of
assets and the settlement of liabilities in the normal course of
business.
(b)
Historical cost convention
These financial statements have been
prepared under the historical cost convention, as modified where
applicable by the revaluation of certain financial assets and
liabilities at fair value through profit or loss.
3.
MATERIAL ACCOUNTING POLICIES
Accounting policies applied by the
Consolidated Entity in this consolidated interim financial report
are the same as those applied by the Consolidated Entity in its
consolidated financial report for the year ended 30 June
2023.
In the current period, the Group has
adopted all of the new and revised Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board
(the AASB) that are relevant to its operations and effective for
annual reporting periods beginning on or after 1 July
2023.
New and revised Standards and
amendments thereof and Interpretations effective for the current
half year that are relevant to the Group include:
·
AASB 2020-6 Amendments to Australian
Accounting Standards - Classification of Liabilities as Current or
Non-Current - Deferral of Effective Date
·
AASB 2021-2 Amendments to Australian
Accounting Standards - Disclosure of Accounting Policies and
Definition of Accounting Estimates
·
AASB 2021-5 Amendments to Australian
Accounting Standards - Deferred Tax related to Assets and
Liabilities arising from a Single Transaction
·
AASB 2023-2 Amendments to AASs -
International Tax Reform Pillar Two Model Rules 29
The adoption of the aforementioned
standards has resulted in no impact on interim financial statements
of the Group as at 31 December 2023.
(a)
Issued standards and
interpretations not early adopted
Australian Accounting Standards and
Interpretations that have recently been issued or amended but are
not yet effective have not been adopted by the Group for the
reporting period ended 31 December 2023. Those which may be
relevant to the Group are set out in the table below, but these are
not expected to have any significant impact on the Group's
financial statements:
Standard/Interpretation
|
Application Date of
Standard
|
Application Date for
Company
|
AASB 2020-1
Amendments to Australian
Accounting Standards - Classification of Liabilities as Current or
Non-Current
|
1 January
2024
|
1 July
2024
|
AASB
2021-7(a-c) Amendments to Australian Accounting Standards - Effective Date
of Amendments to AASB 10 and AASB 128 and Editorial
Corrections
|
1 January
2025
|
1 July
2025
|
4.
SEGMENT INFORMATION
AASB 8 requires operating segments
to be identified on the basis of internal reports about components
of the Consolidated Entity that are regularly reviewed by the chief
operating decision maker in order to allocate resources to the
segment and to assess its performance.
The Consolidated Entity operates in
one operating segment, being exploration for mineral resources
within Spain. This is the basis on which internal reports are
provided to the Directors for assessing performance and determining
the allocation of resources within the Consolidated Entity. All
material non-current assets excluding financial instruments are
located in Spain.
5.
FAIR VALUE MOVEMENTS
|
Consolidated
31 December 2023
$000
|
Consolidated
31 December 2022
$000
|
|
|
|
Fair value
movement on financial liabilities through profit and
loss
|
251
|
633
|
Please refer to note
7 for further
disclosure.
6.
NON-CURRENT ASSETS - PROPERTY, PLANT AND
EQUIPMENT
|
Land
|
|
$000
|
Carrying amount at 1 July
2023
|
9,594
|
Foreign
exchange differences
|
(174)
|
Carrying amount at 31
December 2023
|
9,420
|
- at
cost
|
9,420
|
-
accumulated depreciation, amortisation and impairment
|
-
|
7.
FINANCIAL LIABILITIES
|
Consolidated
31 December 2023
$000
|
Consolidated
30 June 2023
$000
|
(a) Financial
liabilities at fair value through profit and loss:
|
|
|
Unlisted
Options
|
-
|
248
|
|
-
|
248
|
|
Consolidated
30 June
2023
|
|
|
Consolidated
31 December 2023
|
|
Opening Balance
$000
|
Fair Value Change
$000
|
Foreign Exchange Loss
$000
|
Total
$000
|
|
|
|
|
|
(b)
Reconciliation:
|
|
|
|
|
Unlisted
Options
|
248
|
(251)
|
3
|
-
|
Total fair
value
|
248
|
(251)
|
3
|
-
|
(c)
Fair Value
Estimation
The fair value of the unlisted
options was determined using a binomial option pricing model. The
fair value movement of the unlisted options has been recognised in
the Statement of Profit and Loss. Fair value measurements are a
Level 2 valuation in the fair value hierarchy. Given all unlisted
options expired prior to the end of 31 December 2023, no fair value
estimations were required.
8.
CONTRIBUTED EQUITY
(a)
Issued and Paid Up Capital
|
Consolidated
31 December 2023
$000
|
Consolidated
30 June 2023
$000
|
445,797,000
(30 June 2023: 445,797,000) fully paid ordinary shares
|
206,404
|
206,404
|
(b)
Movements in Ordinary Share Capital during the Six Month
Period ended 31 December 2023:
There were no movements in fully
paid ordinary shares during the past six months.
9.
RESERVES
|
Consolidated
31 December 2023
$000
|
Consolidated
30 June 2023
$000
|
|
|
|
Share based
payments reserve (Note 10(a))
|
846
|
613
|
Foreign
currency translation reserve
|
(2,062)
|
(1,881)
|
|
(1,216)
|
(1,268)
|
(a)
Movements in Options during the Six Month Period ended 31
December 2023:
Date
|
Details
|
Number of Options
'000
|
$000
|
|
|
|
|
1 Jul 23
|
Opening
Balance
|
11,400
|
613
|
24 Jul
23
|
Issue of
Incentive Options
|
1,900
|
-
|
31 Dec
23
|
Expiry of
Incentive Options
|
(3,700)
|
(204)
|
Jul 23 to
Dec 23
|
Share based
payment expense
|
-
|
437
|
31 Dec 23
|
Closing
Balance
|
9,600
|
846
|
10.
DIVIDENDS PAID OR PROVIDED FOR
No dividend has been paid or
provided for during the half year (2022: nil).
11.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The majority of the Group's
financial instruments consist of those which are measured at
amortised cost including trade and other receivables, security
bonds, trade and other payables and other financial
liabilities. The carrying amount of these financial assets and
liabilities approximate their fair value. Please refer to
notes 5 and
7 for details on the fair
value of non-cash settled financial liabilities classified as fair
value through profit and loss.
12.
CONTINGENT LIABILITIES
There have been no changes to
contingent liabilities since the date of the last annual
report.
13.
RELATED PARTY DISCLOSURE
Balances and transactions between
the Company and its subsidiaries, which are related parties to the
Company, have been eliminated on consolidation. There have been no
other transactions with related parties during the half-year ended
31 December 2023, other than remuneration with Key Management
Personnel.
14.
SUBSEQUENT EVENTS AFTER BALANCE DATE
There were no significant events
occurring after balance date requiring disclosure.
AUDITOR'S INDEPENDENCE DECLARATION
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AUDITOR'S REVIEW REPORT
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