Quarterly Report December 2018
· Permitting Update:
o The Company has received a number of favourable assessments from various regulatory bodies including two from the Nuclear Safety Council relating to the pre-operational Surveillance Plan for Radiological and Environmental Affections and the pre-operational Surveillance Plan for the Control of the Underground Water. The Company awaits the recommendation report from the Nuclear Safety Council to the relevant Minister.
o The Company has been informed that the local municipality remains unable to grant the Express Resolution on the award of the Urbanism Licence due to a number of outstanding items. These outstanding items have been previously disclosed and are currently being addressed by the Company.
o The Salamanca mine is being developed to the highest international standards and the Company’s commitment to the environment remains a priority. It holds certificates in Sustainable Mining and Environmental Excellence which were awarded by AENOR, an independent Spanish government agency. The Company has been re-awarded both certificates following a consultation process with the agency.
· Uranium market:
o The spot uranium price continued to strengthen during the quarter, ending at US$28.50 per pound, up 4% since 30 September 2018.
o The fundamentals for uranium remain very strong with continued supply disruption being met by a recontracting cycle for US and EU utilities; and continued increases in global nuclear capacity.
o The Company has 2.75 million pounds of U3O8 under contract for the first six years, with a further 1.25 million pounds of optional volume, at an average price above US$42 per pound.
o Soil samples collected near the Salamanca mine has, in addition to uranium, noted significant anomalies for other elements such as gold, lithium, cobalt, tin and rare earths.
o The company has applied for twelve new investigation permits for all the other elements covering more than 350 km2
· Engineering Studies:
o The Company continues to undertake reviews of the engineering design of the project.
· Balance Sheet:
o The Company is in a strong financial position with A$100 million in cash.
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