Berkeley Energia’s (BKY) share price has drifted back to A$0.23, close to our cash backing estimate of A$0.21/sh (£0.12), which assumes maximum dilution from the US$65m unsecured interest free convertible note with the Sultanate of Oman (State General Reserve Fund [SGRF]). As such, we have upgraded our recommendation from SELL to HOLD and maintain a $0.25/sh target price. The Company has faced headwinds on the key construction works authorisation permit (NSC II – Stage 2) due to an anti-nuclear stance by the central Ministry tasked with its ultimate sign-off. To better its prospects of attaining full permitting, BKY is increasing its Spanish complexion by appointing a new Spanish National MD/CEO (in-process) and moving its corporate office to Madrid.
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