BERKELEY ENERGIA (ASX:BKY)
(Up on no news)
This Spain based uranium stock now has gained 170% since the start of March to reach 9-month highs. On no news.
In response to a recent price query BKY points to Russia invasion of Ukraine and a high uranium price as catalysts.
“The company further notes that is light of Russia’s invasion in Ukraine and the current high energy prices in Europe, particularly in Spain which has seen spot electricity prices increase significantly to record highs in March, there have been news articles in the Spanish and European press referring to nuclear power being assessed as a viable alternative to decrease Europe’s dependence on Russian energy,” it says.
“This has already seen the French government order its state energy company, EDF, to establish new reactors as part of plan to strengthen France’s energy security and to sell more nuclear power into the European energy market, and other European governments commence reviews of their existing energy policies.”
“This has led to the significant strengthening of the uranium spot price which currently stands at US$55 per pound and represents a year-to-date increase of over 30%.”
The problem for BKY is that Spanish authorities have already rejected its plans to build its flagship uranium project at ‘Salamanca’.
This decision followed the unfavourable NSC II report issued by the Board of the Nuclear Safety Council (“NSC”) in July 2021, which sent the stock price plummeting.
BKY continues to appeal, but at this point there no indication the Gov will change its mind.
Those investors currently pumping up the share price are either dumb, very smart, or know something the rest of us don’t.
It probs important to note that with $78m in the bank at the end of December, the $250m market cap stock certainly has the cash on hand to complete a solid acquisition or two.
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