TIDMBKY

RNS Number : 1109A

Berkeley Energia Limited

31 January 2022

BERKELEY ENERGIA LIMITED

NEWS RELEASE | 31 January 2022

Quarterly Report December 2021

Summary:

Permitting Update:

During the quarter Berkeley Energia Limited ("Berkeley" or the "Company") received formal notification from the Ministry for Ecological Transition and the Demographic Challenge ("MITECO") that it had rejected the Authorisation for Construction for the uranium concentrate plant as a radioactive facility ("NSC II") at the Company's Salamanca project. This decision followed the unfavourable NSC II report issued by the Board of the Nuclear Safety Council ("NSC") in July 2021.

The Company 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.

In this regard, Berkeley submitted an administrative appeal against MITECO's decision under Spanish law during the quarter.

In Berkeley's strong opinion, MITECO has rejected the Company's NSC II application without following a legally established procedure and the Company believes that MITECO has infringed regulations on administrative procedures in Spain, as well as Berkeley's right of defense, which would imply that the decision on the rejection of the Company's NSC II application is not legal.

The Company will continue to strongly defend its position in relation to the adverse resolution by MITECO and update the market on any material developments.

OIA / SGRF Claim:

During the quarter, the Company was served with a writ commencing legal proceedings in the Supreme Court of Victoria, brought by Singapore Mining Acquisition Co Pte Ltd ("SGRF") (a subsidiary of the Oman Investment Authority ("OIA")) in relation to the investment agreement and convertible note entered into in 2017.

The Company is defending the legal proceedings and has filed its statement of defence to SGRF's claim. The Company also applied to have the legal proceedings transferred from the Supreme Court of Victoria to the Supreme Court of Western Australia, which occurred in January 2022. A directions hearing is currently scheduled for 8 February 2022.

As previously advised, the Company strongly disputes the allegations and claims made by SGRF and will update the market with any material developments.

Uranium Market:

The outlook for nuclear power strengthened further during the quarter, with a number of important developments, including:

 
      --   China planning at least 150 new reactors in the next 15 years, which would 
            be more than the rest of the world has built in the past 35 years. 
      --   A bipartisan infrastructure bill was passed by the US Congress which includes 
            US$6 billion to support existing zero-carbon nuclear facilities under 
            threat of early retirement due to economic factors and US$2.5 billion 
            for advanced nuclear reactors through the Department of Energy's Advanced 
            Reactor Demonstration Program. 
      --   France vowing to build more nuclear reactors to meet climate goals, with 
            President Macron stating, "To guarantee France's energy independence, 
            to guarantee our country's electricity supply, and to reach our goals 
            -- notably carbon neutrality in 2050 -- we will for the first time in 
            decades revive the construction of nuclear reactors in our country, and 
            continue to develop renewable energy." 
      --   The European Commission announcing that consultations had begun with the 
            Member States Expert Group on Sustainable Finance and the Platform on 
            Sustainable Finance on a draft text of a "Taxonomy Complementary Delegated 
            Act" covering gas and nuclear activities. The Commission stated, "there 
            is a role for natural gas and nuclear as a means to facilitate the transition 
            towards a predominately renewable-based future." 
 

The Uranium spot price closed at US$42.10 per pound at the end of December having reached a high of US$47.40 per pound at the end of October. However, near-term demand slowed as the end of the quarter approached with the spot price decreasing slightly at the end of December to US$42.10 per pound.

Uranium price indicators reflective of the longer-term uranium market also rose during the quarter ending December at US$40.50 per pound (Long-Term); US$43.75 per pound (3-year forward price); and US$44.75 per pound (5-year forward price).

For further information please contact:

   Robert Behets                                            Franciso Bellón 
   Acting Managing Director                            Chief Operations Officer 
   +61 8 9322 6322                                          +34 91 555 1380 

info@berkeleyenergia.com

Permitting Update:

During the quarter Berkeley received formal notification from MITECO that it had rejected the NSC II application at the Company's Salamanca project. This decision followed the unfavourable NSC II report issued by the NSC in July 2021.

The Company 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 of the issues raised by the NSC, and a request for its reassessment by the NSC, to MITECO in late July (see announcement dated 23 July 2021).

The Improvement Report was complemented by an Independent Expert's technical opinion on the hydrogeological aspects of the project produced by Prof. Rafael Fernández Rubio, Emeritus Professor of Hydrogeology at the Polytechnic University of Madrid.

Further documentation was submitted to MITECO in early August, 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 (see announcement dated 5 August 2021).

These submissions to MITECO were made as part of the previously disclosed hearing process in relation to the unfavourable NSC II decision.

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.

These additional arguments were detailed in a further letter sent to MITECO in which Berkeley requested that the additional arguments be incorporated into its file and, in view of the outlined deficiencies of the NSC's unfavourable report, the procedure be returned to the NSC for a new report to be issued correcting these deficiencies (see announcement dated 29 October 2021).

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, as well as Berkeley's right of defence, which would imply that the decision on the rejection of the Company's NSC II Application is not legal.

Taking this into account, Berkeley has submitted an administrative appeal against MITECO's decision under Spanish law during the quarter.

The Company will continue to strongly defend its position in relation to the adverse resolution by MITECO and update the market on any material developments.

Following the receipt of MITECO's rejection of NSC II, the Company's previously submitted Initial Authorisation ('NSC I') applications for Zona 7 and Alameda have been dismissed by MITECO. In conjunction with the appeal against the rejection of NSC II, the Company will also strongly defend its position in relation to the NSC I dismissals and has submitted administrative appeals against the NSC I decisions for Alameda and Zona 7.

Project Update:

The Company continued with its commitment to health, safety and the environment as a priority.

During the upcoming March 2022 quarter, the Company will measure and report its performance against the planned 2021 objectives in the areas of health, safety, environment and sustainability.

Uranium Market:

The outlook for nuclear power strengthened further during the quarter, with a number of important developments, including:

 
      --   China planning at least 150 new reactors in the next 15 years, which would 
            be more than the rest of the world has built in the past 35 years. 
      --   A bipartisan infrastructure bill was passed by the US Congress which includes 
            US$6 billion to support existing zero-carbon nuclear facilities under 
            threat of early retirement due to economic factors and US$2.5 billion 
            for advanced nuclear reactors through the Department of Energy's Advanced 
            Reactor Demonstration Program. 
      --   France vowing to build more nuclear reactors to meet climate goals, with 
            President Macron stating, "To guarantee France's energy independence, 
            to guarantee our country's electricity supply, and to reach our goals 
            -- notably carbon neutrality in 2050 -- we will for the first time in 
            decades revive the construction of nuclear reactors in our country, and 
            continue to develop renewable energy." 
      --   The European Commission announcing that consultations had begun with the 
            Member States Expert Group on Sustainable Finance and the Platform on 
            Sustainable Finance on a draft text of a "Taxonomy Complementary Delegated 
            Act" covering gas and nuclear activities. The Commission stated, "there 
            is a role for natural gas and nuclear as a means to facilitate the transition 
            towards a predominately renewable-based future." 
 

The Uranium spot price closed at US$42.10 per pound at the end of December having reached a high of US$47.40 per pound at the end of October. However, near-term demand slowed as the end of the quarter approached with the spot price decreasing slightly at the end of December to US$42.10 per pound.

Uranium price indicators reflective of the longer-term uranium market also rose during the quarter ending December at US$40.50 per pound (Long-Term); US$43.75 per pound (3-year forward price); and US$44.75 per pound (5-year forward price).

OIA / SGRF Claim and Convertible Note:

During the quarter, the Company announced that it had received a writ, for proceedings in the Supreme Court of Victoria at the Melbourne Commercial Court, brought by SGRF in relation to the investment agreement and convertible note entered into in 2017. The writ alleges that the principal amount of US$65 million of the unsecured and interest free convertible note ("Convertible Note") is immediately payable by the Company due to allegations that the investment agreement and convertible note have been frustrated, repudiated and/or an event of default has occurred.

The Company is defending the legal proceedings and has filed its statement of defence to SGRF's claim. The Company also applied to have the legal proceedings transferred from the Supreme Court of Victoria to the Supreme Court of Western Australia, which occurred in January 2022. A directions hearing is currently scheduled for 8 February 2021.

As previously advised, the Company strongly disputes the allegations and claims made by SGRF and will update the market with any material developments.

On 30 November 2021, the Company issued 186,814,815 fully paid ordinary shares in the capital of the Company to SGRF following the automatic conversion of the Convertible Note.

The Convertible Note has been converted in accordance with the terms of the Investment Agreement and Convertible Note entered in with SGRF in 2017.

The Company's issued ordinary share capital following conversion of the Convertible Note is 445,796,715 ordinary shares.

COVID-19 Update:

Authorities in Spain continue to maintain COVID-19 restrictions amid rising case numbers attributed to the COVID-19 Omicron variant.

Regional authorities are responsible for setting localised restrictions, though they must petition local courts for authority to impose curfews, travel controls, and COVID-pass requirements mandating proof of vaccination, recovery, or a recent negative COVID-19 test for access to certain venues. Many regions are considering relaxing measures due to declining infection rates. Generally, most businesses and services are permitted to operate but must adhere to social distancing or capacity requirements, gatherings are limited, and nightlife venues must close at a certain hour. Some regions have implemented COVID-pass rules for certain facilities. Facemasks remain mandatory in public spaces across Spain.

Nonessential travel to Spain is only permitted for travellers from EU/EEA-associated states, Argentina, Australia, Bahrain, Canada, Chile, China, Colombia, Indonesia, Kuwait, New Zealand, Peru, Qatar, Rwanda, Saudi Arabia, South Korea, Taiwan, UAE, and Uruguay. Nonessential travel is also permitted from all countries except those listed above for individuals who possess a certificate of vaccination confirming they have completed a full course of a COVID-19 vaccine authorized by the European Medicines Agency ("EMA") or World Health Organization ("WHO") no less than 14 days before entry.

EU citizens arriving from countries designated as "risk-countries" must present a certificate of vaccination, a certificate of having recovered from COVID-19 within the previous 11-180 days, a negative COVID-19 PCR test taken in the 72 hours before arrival, or a negative antigen test taken in the 48 hours before arrival.

Travelers from designated "safe countries," including Bahrain, Chile, China, Colombia, Indonesia, Kuwait, New Zealand, Peru, Qatar, Rwanda, Saudi Arabia, South Korea, Taiwan, UAE, and Uruguay, may enter Spain without additional requirements. Permitted unvaccinated travellers from all other non-EU countries must possess a certificate of recovery or negative test meeting the above requirements.

All of the Berkeley team based in Spain are safe and well.

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 announcement.

Appendix 1: Summary of Mining Tenements

As at 31 December 2021, the Company had an interest in the following tenements:

 
 Location         Tenement Name                  Percentage   Status 
                                                  Interest 
---------------  -----------------------------  -----------  -------- 
 Spain 
 Salamanca        D.S.R Salamanca 28 (Alameda)      100%      Granted 
                  D.S.R Salamanca 29 (Villar)       100%      Granted 
                  E.C. Retortillo-Santidad          100%      Granted 
                  E.C. Lucero                       100%      Pending 
                  I.P. Abedules                     100%      Granted 
                  I.P. Abetos                       100%      Granted 
                  I.P. Alcornoques                  100%      Granted 
                  I.P. Alisos                       100%      Granted 
                  I.P. Bardal                       100%      Granted 
                  I.P. Barquilla                    100%      Granted 
                  I.P. Berzosa                      100%      Granted 
                  I.P. Campillo                     100%      Granted 
                  I.P. Casta ñ os              100%      Granted 
                   2 
                  I.P. Ciervo                       100%      Granted 
                  I.P. Conchas                      100%      Granted 
                  I.P. Dehesa                       100%      Granted 
                  I.P. El Á guila              100%      Granted 
                  I.P. El Vaqueril                  100%      Granted 
                  I.P. Espinera                     100%      Granted 
                  I.P. Horcajada                    100%      Granted 
                  I.P. Lis                          100%      Granted 
                  I.P. Mailleras                    100%      Granted 
                  I.P. Mimbre                       100%      Granted 
                  I.P. Pedreras                     100%      Granted 
                  E.P. Herradura                    100%      Granted 
 C á ceres   I.P. Almendro                     100%      Granted 
                  I.P. Ibor                         100%      Granted 
                  I.P. Olmos                        100%      Granted 
 Badajoz          I.P. Don Benito Este              100%      Granted 
                  I.P. Don Benito Oeste             100%      Granted 
---------------  -----------------------------  -----------  -------- 
 

During the quarter ended 31 December 2021, no tenements were issued, expired or lapsed during the quarter. There were no other changes to beneficial interest, acquired or disposed of, in any mining tenements due to farm-in or farm-out agreements. An application for a 1-year extension at E.P. Herradura was previously rejected however this decision has been appealed and the Company awaits the decision regarding its appeal.

Appendix 2: Related Party Payments

During the quarter ended 31 December 2021, the Company made payments of $84,000 to related parties and their associates. These payments relate to existing remuneration arrangements (director and consulting fees plus statutory superannuation).

Appendix 3: Exploration and Mining Expenditure

During the quarter ended 31 December 2021, the Company made the following payments in relation to exploration and development activities:

 
 Activity                                           $000 
-------------------------------------------------  ----- 
 Radiological protection and monitoring              186 
 Permitting related expenditure (including legal 
  expenses)                                          460 
 Consultants and other expenditure                   324 
 Return of VAT in Spain                             (64) 
 Total as reported in the Appendix 5B                906 
-------------------------------------------------  ----- 
 

There were no mining or production activities and expenses incurred during the quarter ended 31 December 2021.

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

 
 Name of entity 
----------------------------------------------------- 
 Berkeley Energia Limited 
 ABN                Quarter ended ("current quarter") 
---------------    ---------------------------------- 
 40 052 468 569     31 December 2021 
                   ---------------------------------- 
 
 
 Consolidated statement of cash              Current quarter   Year to date 
  flows 
                                                      $A'000     (6 months) 
                                                                     $A'000 
 1.     Cash flows from operating 
         activities 
 1.1    Receipts from customers                            -              - 
 1.2    Payments for 
        (a) exploration & evaluation                   (906)        (1,640) 
        (b) development                                    -              - 
        (c) production                                     -              - 
        (d) staff costs                                (331)          (571) 
        (e) administration and corporate 
         costs                                         (229)          (667) 
 1.3    Dividends received (see note                       -              - 
         3) 
 1.4    Interest received                                  6             12 
 1.5    Interest and other costs of                        -              - 
         finance paid 
 1.6    Income taxes paid                                  -              - 
 1.7    Government grants and tax                          -              - 
         incentives 
        Other (provide details if 
 1.8     material) 
         (a) Business Development                          -            (3) 
         (b) Litigation                                 (18)           (18) 
                                            ----------------  ------------- 
        Net cash from / (used in) 
 1.9     operating activities                        (1,478)        (2,887) 
-----  -----------------------------------  ----------------  ------------- 
 
 2.     Cash flows from investing 
         activities 
 2.1    Payments to acquire or for: 
        (a) entities                                       -              - 
        (b) tenements                                      -              - 
        (c) property, plant and equipment                  -              - 
        (d) exploration & evaluation                       -              - 
        (e) investments                                    -              - 
        (f) other non-current assets                       -              - 
 2.2    Proceeds from the disposal 
         of: 
        (a) entities                                       -              - 
        (b) tenements                                      -              - 
        (c) property, plant and equipment                  -              - 
        (d) investments                                    -              - 
        (e) other non-current assets                       -              - 
 2.3    Cash flows from loans to other                     -              - 
         entities 
 2.4    Dividends received (see note                       -              - 
         3) 
 2.5    Other (provide details if                          -              - 
         material) 
                                            ----------------  ------------- 
 2.6    Net cash from / (used in) 
         investing activities                              -              - 
-----  -----------------------------------  ----------------  ------------- 
 
 3.     Cash flows from financing 
         activities 
 3.1    Proceeds from issues of equity 
         securities (excluding convertible 
         debt securities)                                  -              - 
 3.2    Proceeds from issue of convertible 
         debt securities                                   -              - 
 3.3    Proceeds from exercise of                          -              - 
         options 
        Transaction costs related 
         to issues of equity securities 
 3.4     or convertible debt securities                 (93)           (93) 
 3.5    Proceeds from borrowings                           -              - 
 3.6    Repayment of borrowings                            -              - 
 3.7    Transaction costs related 
         to loans and borrowings                           -              - 
 3.8    Dividends paid                                     -              - 
 3.9    Other (provide details if                          -              - 
         material) 
                                            ----------------  ------------- 
        Net cash from / (used in) 
 3.10    financing activities                           (93)           (93) 
-----  -----------------------------------  ----------------  ------------- 
 
 4.     Net increase / (decrease) 
         in cash and cash equivalents 
         for the period 
        Cash and cash equivalents 
 4.1     at beginning of period                       80,710         79,064 
        Net cash from / (used in) 
         operating activities (item 
 4.2     1.9 above)                                  (1,478)        (2,887) 
 4.3    Net cash from / (used in) 
         investing activities (item 
         2.6 above)                                        -              - 
        Net cash from / (used in) 
         financing activities (item 
 4.4     3.10 above)                                    (93)           (93) 
        Effect of movement in exchange 
 4.5     rates on cash held                            (518)          2,537 
                                            ----------------  ------------- 
        Cash and cash equivalents 
 4.6     at end of period                             78,621         78,621 
-----  -----------------------------------  ----------------  ------------- 
 
 
 5.    Reconciliation of cash and           Current quarter   Previous quarter 
        cash equivalents                             $A'000             $A'000 
        at the end of the quarter 
        (as shown in the consolidated 
        statement of cash flows) to 
        the related items in the accounts 
 5.1   Bank balances                                 78,571             80,660 
 5.2   Call deposits                                     50                 50 
 5.3   Bank overdrafts                                    -                  - 
 5.4   Other (provide details)                            -                  - 
                                           ----------------  ----------------- 
       Cash and cash equivalents 
        at end of quarter (should 
 5.5    equal item 4.6 above)                        78,621             80,710 
----  -----------------------------------  ----------------  ----------------- 
 
 
 6.      Payments to related parties of the entity        Current quarter 
          and their associates                                     $A'000 
         Aggregate amount of payments to related 
          parties and their associates included in 
 6.1      item 1                                                     (84) 
                                                        ----------------- 
 6.2     Aggregate amount of payments to related 
          parties and their associates included in 
          item 2                                                        - 
                                                        ----------------- 
 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly 
  activity report must include a description of, and an explanation 
  for, such payments. 
 
 
 7.    Financing facilities                   Total facility 
        Note: the term "facility'          amount at quarter      Amount drawn 
        includes all forms of financing                  end    at quarter end 
        arrangements available to                     $A'000            $A'000 
        the entity. 
        Add notes as necessary for 
        an understanding of the sources 
        of finance available to the 
        entity. 
 7.1   Loan facilities                                     -                 - 
                                         -------------------  ---------------- 
 7.2   Credit standby arrangements                         -                 - 
                                         -------------------  ---------------- 
 7.3   Other (please specify)                              -                 - 
                                         -------------------  ---------------- 
 7.4   Total financing facilities                          -                 - 
                                         -------------------  ---------------- 
 
 7.5   Unused financing facilities available at                              - 
        quarter end 
                                                              ---------------- 
 7.6   Include in the box below a description of each facility 
        above, including the lender, interest rate, maturity date 
        and whether it is secured or unsecured. If any additional 
        financing facilities have been entered into or are proposed 
        to be entered into after quarter end, include a note providing 
        details of those facilities as well. 
----  ------------------------------------------------------------------------ 
       Not applicable 
---- 
 
 
 8.     Estimated cash available for future operating                $A'000 
         activities 
        Net cash from / (used in) operating activities 
 8.1     (item 1.9)                                                 (1,478) 
 8.2    (Payments for exploration & evaluation classified 
         as investing activities) (item 2.1(d))                           - 
 8.3    Total relevant outgoings (item 8.1 + item                   (1,478) 
         8.2) 
 8.4    Cash and cash equivalents at quarter end                     78,621 
         (item 4.6) 
 8.5    Unused finance facilities available at quarter                    - 
         end (item 7.5) 
                                                                   -------- 
 8.6    Total available funding (item 8.4 + item                     78,621 
         8.5) 
                                                                   -------- 
 
 8.7    Estimated quarters of funding available 
         (item 8.6 divided by item 8.3)                                 >10 
                                                                   -------- 
  Note: if the entity has reported positive relevant outgoings 
   (ie a net cash inflow) in item 8.3, answer item 8.7 as 
   "N/A". Otherwise, a figure for the estimated quarters 
   of funding available must be included in item 8.7. 
 8.8    If item 8.7 is less than 2 quarters, please provide answers 
         to the following questions: 
  8.8.1 Does the entity expect that it will continue to 
   have the current level of net operating cash flows for 
   the time being and, if not, why not? 
 -------------------------------------------------------------------------- 
  Answer: Not applicable 
 -------------------------------------------------------------------------- 
  8.8.2 Has the entity taken any steps, or does it propose 
   to take any steps, to raise further cash to fund its operations 
   and, if so, what are those steps and how likely does it 
   believe that they will be successful? 
 -------------------------------------------------------------------------- 
  Answer: Not applicable 
 -------------------------------------------------------------------------- 
  8.8.3 Does the entity expect to be able to continue its 
   operations and to meet its business objectives and, if 
   so, on what basis? 
 -------------------------------------------------------------------------- 
  Answer: Not applicable 
 -------------------------------------------------------------------------- 
  Note: where item 8.7 is less than 2 quarters, all of questions 
   8.8.1, 8.8.2 and 8.8.3 above must be answered. 
 -------------------------------------------------------------------------- 
 

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

   2        This statement gives a true and fair view of the matters disclosed. 
   Date:                31 January 2022 

Authorised by: Company Secretary

(Name of body or officer authorising release - see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

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January 31, 2022 01:59 ET (06:59 GMT)

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