3094 days ago
I know that the news from Salamanca last week was big but this big? Big enough for Numis to up its target price for shares in Berkeley Energy (BKY) from 40p to 100p? The shares are now 26.5p? Really?
I think the shares are cheap but my target price is only 36p. But then I am not paid to act as corporate broker to this company. Numis is. The note is worth a read but 100p? Numis is surely 'avin' a bubble.
3097 days ago
In an announcement entitled “Zona 7 transforms Salamanca project economics”, Berkeley Energy (BKY) has announced the results of a pre-feasibility study which shows “the project now has a Net Present Value of $871.3 million (£580.9 million) with an internal rate of return of 93% based on a discount rate of 8% and a long term uranium price of $65 per pound”
3098 days ago
On today's podcast I start with a couple of risers: Berkeley Energy (BKY) - where's my apology Brokerman Dan? And Optibiotix (OPTI) - you know I am not totally useless at long tips. Then onto the losers: Galasys (GLS), TyraTech (TYR), Northern Petroleum (NOP). Then it is Golden Saint Resources (GSR) where I also try to help out hapless compliance officer the Northern Slum refugee Richard "Gollum" Gill by explaining the rules about a financial promotion. I missed out FastJet (FJET) - down on weak passenger data, can anyone remember anyone involved in its IPO who might be a red flag? Then I turn my attention to David Lenigas, the boiler room and Inspirit (INSP).
3115 days ago
Investment Case: As noted last month with Berkeley Energy, it is not a surprise to see eye-watering share price declines over previous years for stocks with sector: “Mining”. Shares in *Petropavlovsk plc, formerly Peter Hambro Mining, (POG) have particularly suffered – they down from more than 400p at the commencement of 2011 and more than 100p at the commencement of 2013 to a current 6.47p offer price – amidst a combination of sector-wide and company-specific challenges, the latter including a vast debt pile. However, a recent refinancing and refocusing – with production now being optimised from a cash generation point of view – now offer the promise of a decent recovery from current levels and the shares are a buy…the target price to sell is 19p within three years.
3122 days ago
Berkeley Energy (BKY) has announced an updated JORC compliant mineral resource and reiterated that “the inclusion of the important Zona 7 deposit is expected to fundamentally improve the economics of the Salamanca project, even at current uranium prices, by significantly increasing the mine life, the production rates and by reducing the operating costs”
3142 days ago
Investment Case: Sector: “Mining”. Therefore, it is not a surprise that, having been above 100p just over 4½ years ago and 30p 2½ years ago, shares in what was Berkeley Resources, now Berkeley Energy (BKY), traded down towards 11p earlier this year. However, the last few months have seen a recovery to a current 21p offer price and, having largely (and correctly) avoided the sector here thus far, we now sense investor confidence is at least near the bottom. This together with recent developments at Berkeley give us the confidence to now add the shares to the Gold (really mining) portfolio, considering there the potential for further good gains from here in even just a relatively stable investment environment for the industry. Should sentiment actually decently improve – as it will at some point – we should be really off to the races here… Our initial target price to sell is 30p.
