RNS Number:3223C
Nufcor Uranium Limited
17 August 2007
17 August 2007
NUFCOR URANIUM LIMITED ("NUFCOR URANIUM" OR "THE COMPANY")
PRELIMINARY ANNOUNCEMENT OF FINAL RESULTS FOR THE PERIOD ENDED 30 JUNE
2007
Nufcor Uranium today announces its final results for the period from 28 June
2006 to 30 June 2007.
Highlights
Highlights for the period ended 30 June 2007:
* Income US$2,706,351
* Loss for the period (US$518,896)
* Shareholders' equity US$180,883,792
* Net assets at market value US$391,707,792
* Diluted adjusted NAV per share at 30 June 2007 GBP4.58(US$9.19)
* Adjusted NAV per share at 30 June 2007 GBP4.73(US$9.50)
* Increase in adjusted NAV since admission
to AIM on 21 July 2006 GBP2.84 (150%)
Chairman's statement
Since Admission on 21st July 2006, the Company has raised US$189m, and has
successfully met its investment objective of investing at least 90% of the net
proceeds of the subscription for the Company's shares in uranium. As at 30th
June 2007, the Company owned 2.3 Mlbs uranium oxide in concentrates ("U3O8 ")
and 200,000 kgU in uranium hexafluoride ("UF6").
Through the year ending June 2007, the price of uranium has risen significantly,
leading to a rise in the Company's adjusted NAV per share from GBP1.89 (US$3.51)
as at 21st July 2006 to GBP4.73 (US$9.50) on 30th June 2007, a gain of 150%.
In early February 2007, the directors proposed two changes to the Company's
Investment Guidelines which we believed would further enhance the Company's
prospects. The approval of Shareholders at an Extraordinary General Meeting for
these changes was received on 26th March 2007. The approved changes allowed the
Company to invest in UF6, as well as in U3O8, and also removed the restriction
on the proportion of the Company's uranium which may be lent to third parties.
Subsequent to the change in the Investment Guidelines, in early May 2007, the
Company successfully completed a private placing of 8.25m shares at GBP4.20 per
share, raising a gross amount of US$69m, of which US$64.3m was used to purchase
200,000 kgU in UF6.
During the financial year, the Company has also undertaken U3O8 loan
transactions which have generated revenue of US$1.6m that has been used to meet
some of the Company's operating expenses. The directors believe that there are
other potential opportunities to lend uranium and will be seeking to develop
these further.
The Company's first AGM will be held on 28th September 2007 and the Board will
be seeking the authority by special resolution to purchase up to 15% of the
shares in issue.
After four years of continuous increase in the spot price of uranium, there has
been a softening since July 2007. However, in the long-term, the directors
continue to believe in the robust fundamentals underpinning the global uranium
fuel market.
Michael Travis
Chairman
Report of the Investment Adviser
For the period ended 30th June 2007
The uranium market supply and demand fundamentals remained strong during the
financial period ended 30th June 2007. During this period the industry average
spot price (TradeTech and UxC) of U3O8 has risen almost 200% from US$45.75/lb as
at 30th June 2006 to US$135.50/lb as at 30th June 2007. The average UF6 value
over this same period rose from US$130.90/kgU to US$359.00/kgU .
The U3O8 price has risen consistently during the period, exacerbated by flooding
at the Cigar Lake mine in Saskatchewan, Canada, in October 2006 resulting in the
loss of about 22 Mlbs of anticipated supply in the near term through the pushing
back of the mine's development by at least two years. In February 2007, the
Ranger mine in Australia, owned by ERA, encountered production problems due to
water in its open pit stemming from cyclones Monica and George, causing Ranger
to claim force majeure on some of its supply contracts. These events underscore
the reality that the uranium fuel cycle remains very vulnerable to major supply
side disruptions.
On a positive note, the price rise is encouraging mine project development and
exploration albeit at a slow pace. The McArthur River mine in Canada is awaiting
regulatory approval to be expanded by about 12% within the next year or so and
there is potential for Australia's Olympic Dam, the world's largest uranium
resource, to increase its output to around 33 Mlbs per annum within the next
decade. Furthermore, in-situ leach mine development in Kazakhstan continues at
an aggressive pace with the country's annual production expected to increase
from an anticipated 18 Mlbs in 2007 to as much as 40 Mlbs by 2010.
The supply of uranium into the fuel market from above ground stocks remains a
relative uncertainty. While utilities' inventory volumes have generally
increased over the last few years, government inventories are expected to
continue entering the market at relatively modest levels, the most significant
component of which will be from the Russian Highly Enriched Uranium programme
with the US which continues through 2013.
On the demand side, the world long term demand outlook for uranium has been
supported by the announced large nuclear programmes of the Peoples Republic of
China, Russia, and India. In general, security of energy supply remains an
important strategic imperative for governments and this, coupled with a growing
worldwide recognition of the economic and environmental potential offered by
nuclear power, continues to support the favourable long term outlook for the
nuclear fuel market.
There has been a marked increase in the pace of price rises in the uranium
market since February 2007. The rapid appreciation in the price of uranium since
then has been primarily driven by significant speculative activity in an
environment of modest short-term demand but highly constrained supply. However,
the liberation of uranium supplies and coincident removal of demand in June 2007
have resulted in a softening of uranium prices since early July 2007.
Notwithstanding, the long-term supply and demand fundamentals underpinning the
market have not changed materially and prospects for nuclear energy's continued
renaissance continue to look encouraging.
Nufcor Capital Limited
Two London Bridge
London
SE1 9RA
For further information, please contact:
Nufcor Uranium Limited +44 772 054 7834
Michael Travis (Chairman)
Nufcor Capital Limited +44 207 939 1830
Gary Stoker
Rian Raghavjee
Smithfield +44 20 7360 4900
Rupert Trefgarne
Income statement
For the period ended 30th June 2007
Note 28th June 2006
to
30th June 2007
US$
Income
Bank interest 1,119,923
Uranium loan fees 2 1,586,428
-----------
2,706,351
-----------
Expenses 2
Investment advisory fees 1,917,077
Audit fees 54,543
Directors fees 222,227
Other administrative expenses 1,031,400
-----------
3,225,247
-----------
Loss for the financial period attributable to equity
shareholders (518,896)
===========
Basic and diluted loss per share 8 US$0.015
===========
Balance sheet
At 30th June 2007
Note 2007
US$
ASSETS
Non-current assets
Other assets - Uranium holdings 3 172,626,000
-----------
172,626,000
-----------
Current assets
Trade and other receivables 4 1,308,021
Cash and cash equivalents 7,447,215
-----------
8,755,236
-----------
Total assets 181,381,236
===========
EQUITY
Share capital 5 412,500
Share premium account 180,990,188
Retained earnings (518,896)
-----------
Total Equity 180,883,792
-----------
LIABILTIES
Current liabilities
Trade and other payables 8 497,444
-----------
Total liabilities 497,444
-----------
Total EQUITY AND LIABILITIES 181,381,236
===========
Statement of changes in equity
For the period ended 30th June 2007
Note Ordinary Share Retained Total
shares premium Earnings US$
US$ US$ US
Balance at 28th June - - - -
2006
Issue of shares 412,500 188,610,338 - 189,022,838
Loss for the period - - (518,896) (518,896)
Fair value of
equity-settled
share-option 6 - 2,215,868 - 2,215,868
granted
Formation and listing
expense recognised
directly in equity in
relation to the
services
of the Custodian at 2 - (2,215,868) - (2,215,868)
admission
Other formation and
listing expenses
recognised directly in
equity 2 - (7,620,150) - (7,620,150)
-------- --------- -------- --------
Balance at 30th June 412,500 180,990,188 (518,896) 180,883,792
2007 ======== ========= ======== ========
Cash flow statement
For the period ended 30th June 2007
28th June 2006
to
30th June 2007
US$
NET CASH FLOWS FROM OPERATING ACTIVITIES
Loss from operations (518,896)
Increase in receivables (1,308,021)
Increase in payables 497,444
Purchase of uranium holdings (172,626,000)
-----------
NET CASH OUTFLOW FROM OPERATING ACTIVITIES (173,955,473)
-----------
FINANCING ACTIVITIES
Proceeds from issue of ordinary shares 189,022,838
Formation and listing expenses recognised directly (7,620,150)
in equity
-----------
CASH FROM FINANCING ACTIVITIES 181,402,688
-----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 7,447,215
CASH AND CASH EQUIVALENTS -
AT BEGINNING OF PERIOD
===========
CASH AND CASH EQUIVALENTS 7,447,215
AT END OF PERIOD
===========
Notes to the financial statements
For the period ended 30th June 2007
1. GENERAL INFORMATION
Nufcor Uranium Limited (the "Company") was incorporated in Guernsey on 28th June
2006 and is a closed ended investment company.
The Company was admitted to the Alternative Investment Market of the London
Stock Exchange ("AIM") on 21st July 2006.
Activities
The Company's activities include holding and lending uranium oxide concentrates
("U3O8 ") and uranium hexaflouride ("UF6"), with the primary investment
objective of achieving capital appreciation in the value of its uranium holdings
.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") and IFRIC interpretations as adopted by
the European Union (EU) and with Section 64 of The Companies (Guernsey) Law,
1994 applicable to companies reporting under IFRS. The financial statements have
been prepared under the historical cost convention. A summary of the more
important accounting policies is set out below.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Although these estimates are based on management's best
knowledge of the amount, event or actions, actual results ultimately may differ
from those estimates.
(a) Standards that are not yet effective and have not been early adopted
IFRS 7, Financial Instruments: Disclosures, and a complementary amendment to IAS
1, Presentation of Financial Statements - Capital Disclosures (effective for
year ends beginning on or after 1st January 2007). IFRS 7 introduces new
disclosures to improve the information about financial instruments. It requires
the disclosure of qualitative and quantitative information about exposure to
risks arising from financial instruments, including specified minimum
disclosures about credit risk, liquidity risk and market risk, including
sensitivity analysis to market risk. It replaces disclosure requirements in IAS
32, Financial Instruments: Disclosure and Presentation. It is applicable to all
entities that report under IFRS. The amendment to IAS 1 introduces disclosures
about the level of an entity's capital and how it manages capital. The directors
have assessed the impact of IFRS 7 and the amendment to IAS 1 and concluded that
the main additional disclosures will be the sensitivity analysis to market risk
and the capital disclosures required by the amendment of IAS 1. The Company will
apply IFRS 7 and the amendment to IAS 1 from 1st July 2007.
Notes to the financial statements
For the period ended 30th June 2007
SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Standards, amendments and interpretations effective in 2006 but not
relevant
The following standards, amendments and interpretations are mandatory for
accounting periods beginning on or after 1st January 2006 but are not relevant
to the Company's operations:
* IAS 19 (Amendment), Employee Benefits;
* IAS 21 (Amendment), Net Investment in a Foreign Operation;
* IAS 39 (Amendment), Cash Flow Hedge Accounting of Forecast Intragroup
Transactions;
* IAS 39 and IFRS 4 (Amendment), Financial Guarantee Contracts;
* IFRS 6, Exploration for and Evaluation of Mineral Resources;
* IFRS 1 (Amendment), First-time Adoption of International Financial
Reporting Standards;
* IFRIC 4, Determining whether an Arrangement contains a Lease;
* IFRIC 5, Rights to Interests arising from Decommissioning, Restoration
and Environmental Rehabilitation Funds; and
* IFRIC 6, Liabilities arising from Participating in a Specific Market -
Waste Electrical and Electronic Equipment.
(c) Interpretations to existing standards that are not yet effective and not
relevant for the Company's operations
The following interpretations are mandatory for the Company's accounting period
beginning on 28th June 2006 or later periods but are not relevant for the
Company's operations:
* IFRIC 7, Applying the Restatement Approach under IAS 29, Financial
Reporting in Hyperinflationary Economies (effective from 1st March 2006);
* IFRIC 8, Scope of IFRS 2 (effective from 1st May 2006);
* IFRIC 9, Reassessment of the Embedded Derivatives (effective from 1st
June 2006);
* IFRIC 10, Interim Financial Reporting and Impairment (effective 1st
November 2006);
* IFRIC 11, IFRS 2 - Group and Treasury Share Transactions (effective from
1st March 2007); and
* IFRIC 12, Service Concession Agreements (effective from 1st January
2008).
Foreign currency translation
(a) Functional and presentation currency
The functional currency of the Company is US Dollars. The Company's investors
are mainly from the United Kingdom and North America. The primary activity of
the Company is to invest in U3O8 and UF6 which are valued in US Dollars. The
performance of the Company is measured and reported to the investors in both
Sterling and US Dollars.
The Board of Directors considers the US Dollar as the currency that most
faithfully represents the economic effects of the underlying transactions,
events and conditions. The financial statements are presented in US Dollars
which is the Company's functional and presentation currency.
(b) Transactions and balances
Transactions in foreign currencies are accounted for at the rates of exchange
ruling at the dates of those transactions. Income statement items in foreign
currencies are translated into US Dollars at transaction date. Foreign currency
balances at year end are translated at the approximate rates of exchange ruling
at that date. Gains and losses arising on the settlement of transactions and the
translation at period end exchange rates of monetary assets and liabilities
balances denominated in foreign currencies are recognised in the income
statement.
Segmental reporting
The Company has one main business segment and one main geographic segment.
A business segment is a group of assets and operations engaged in providing
products or services that are subject to risks and returns that are different
from those of other business segments. A geographical segment is engaged in
providing products or services within a particular economic environment that are
subject to risks and returns that are different from those of segments operating
on other economic environments.
Notes to the financial statements
For the period ended 30th June 2007
SIGNIFICANT ACCOUNTING POLICIES (continued)
Revenue recognition
Revenue is recognised only when it is probable that the economic benefits
associated with a transaction will flow to the company and the amount of revenue
can be measured reliably.
Revenue on the sale of U3O8 and UF6 is recognised at the time of delivery.
Uranium loan fees
Fees from loans of U3O8 and UF6 to third parties is recognised in the income
statement on an effective yield basis. The fees are based on a loan rate and are
calculated on the market value of the loaned uranium on a quarterly basis.
Formation and listing expenses recognised directly in equity
Formation and listing expenses are expensed against share premium as they are
incurred.
Expenses
All operating expenses, including investment advisory fees, are recognised in
the income statement on an accruals basis.
Holdings of U3O8 and UF6
Holdings of U3O8 and UF6 are valued at cost less impairment. Any impairment is
recognised in the income statement.
U3O8 and UF6 on loan to counterparties remains on the balance sheet as the
Company retains substantially all of the risks and rewards of ownership.
Forward contracts
From time to time, the Company may enter into contracts for the future delivery
of U3O8 and UF6 at a fixed price. Such contracts are "executory contracts" in
that both parties are still to perform, to an equal degree, the actions required
of them by the contract until the day of final delivery under the contract.
Executory contracts are not recognised in the balance sheet of the Company, but
are noted as a future financial commitment.
Financial instruments
Financial assets and liabilities carried on the balance sheet include cash and
cash equivalents, trade and other accounts receivable and payable.
Financial instruments are classified as assets, liabilities or equity in
accordance with the substance of the contractual arrangement. Interest, gains
and losses relating to a financial instrument classified as an asset or
liability are reported as an expense or income. Financial instruments are offset
when the Company has a legally enforceable right to offset and intends to settle
either on a net basis or to realise the asset and settle the liability
simultaneously.
Trade receivables
Trade receivables are measured on initial recognition at fair value and
subsequently measured at amortised cost less provision for impairment.
Appropriate allowances for estimated irrecoverable amounts are recognised in the
income statement when there is objective evidence that the asset is impaired.
Any allowance recognised is measured as the difference between the asset's
carrying amount and the present value of estimated future cash flows discounted
at the effective interest rate computed on initial recognition of the asset.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, demand deposits and deposits
with original maturities of three months or less.
Notes to the financial statements
For the period ended 30th June 2007
SIGNIFICANT ACCOUNTING POLICIES (continued)
Provisions and contingent liabilities
Provisions are recognised when the Company has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of
resources will be required to settle the obligation, and a reliable estimate of
the amount can be made.
Provisions are measured at the directors' best estimate of the expenditure
required to settle the obligation at the balance sheet date, and are discounted
to present value where the effect is material.
The Company recognises a provision for onerous contracts when the expected
benefits to be derived from a contract are less than the unavoidable costs of
meeting the obligations under the contract.
Contingent liabilities are disclosed if the future obligation is probable or the
amount cannot be reasonably estimated.
Trade payables
Trade payables are initially measured at fair value, and are subsequently
measured at amortised cost, using the effective interest rate method. Trade
payables are carried at the fair value of the consideration to be paid in future
for services that have been received or supplied and invoiced or formally agreed
with the supplier.
Impairment of other assets
Other assets are reviewed for impairment losses whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the carrying amount of the
asset exceeds its recoverable amount (that is, the higher of the asset's net
selling price and value in use). For the purposes of assessing impairment,
assets are grouped at the lowest level for which there are separately
identifiable cash flows.
Taxation
The Company is incorporated in Guernsey and has exempt status under the Income
Tax (Exempt Bodies) Guernsey Ordinance, 1989. The Company applies for the
exemption annually and a fixed fee of GBP600 is payable to obtain the exemption.
Share capital
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares are shown in equity as a deduction from
the proceeds, net of tax, and are disclosed in the statement of changes in
equity.
Share-based payments
The Company has applied the requirements of IFRS 2, Share-based Payments.
The Company issued equity share options which represent equity-settled
share-based payments in connection with the admission of the Company to AIM.
Equity-settled share-based payments are measured at fair value at the date of
grant. The fair value determined at the grant date of the equity-settled share
based payment is deemed to be an incremental cost directly attributable to the
issue of the shares at admission and as such is deducted from equity.
Fair value is measured by use of the Black-Scholes pricing model. The expected
life used in the model is based on management's best estimate and is adjusted
for the effects of non-transferability, exercise restrictions and behavioural
considerations.
See Note 6 for further description of the equity-settled share option granted.
Risk management
The Company attempts to mitigate risks that may affect its performance through a
process of identifying, assessing, reporting and managing material risks. The
principal risks to which the Company is exposed are uranium price risk,
counterparty credit risk, custodian credit risk and liquidity risk.
Notes to the financial statements
For the period ended 30th June 2007
SIGNIFICANT ACCOUNTING POLICIES (continued)
Uranium price risk
As an investor in uranium, the Company holds significant positions in uranium
that are exposed to changes in market price. In addition, the Company may enter
into fixed price forward purchase and sales contracts. The price of uranium is
volatile and is influenced by numerous factors beyond the Company's control,
such as demand and supply fundamentals and geopolitical events.
The objective of the Company is capital appreciation, which it intends to
achieve through a policy of acquiring uranium and a strategy of holding such
uranium for the long-term and not actively speculating or trading with regard to
short-term changes in the price of uranium. Accordingly, the Company does not
hedge or otherwise protect against movements in uranium price.
Counterparty credit risk
The Company's purchase, sale and lending of uranium expose the Company to the
risk of non-payment or non-performance. The directors review credit issues
associated with each and every transaction and consideration is given to credit
worthiness and credit concentration issues, the provision of appropriate
security, and other risk mitigation measures.
Custodian credit risk
The Company is exposed to the credit risk of the Custodian, Nufcor International
Limited, and that of the conversion and enrichment facilities ("facilities"),
the ultimate custodians of the Company's uranium. The Custodian is required to
give the Company immediate notice of any material adverse change in its
financial condition and has an obligation to notify the Company of any material
adverse change in the financial position of the facilities at which its uranium
is held. The directors periodically review and manage the Company's exposure to
the credit risk of facilities that hold its material by diversifying its uranium
holdings across several facilities.
Physical uranium loss risk
The uranium owned by the Company could suffer damage or destruction by fire,
chemical accident, leakage or other incidents beyond the Company's control. This
may result in losses which are not compensated for either by the Custodian
(through its contractual arrangements with the conversion and enrichment
facilities) or by insurance proceeds. The directors periodically review and
manage the Company's risk of uranium loss by diversifying its uranium holding
across several conversion and enrichment facilities, considering the
availability of indemnities from the facilities and/or the availability of
external insurance cover.
Liquidity risk
The Company funds ongoing expenses from interest income, uranium loan fees, and
from cash held on demand and on deposit. The Company could be exposed to
significant liquidity risk if it were to fully invest its cash balances and if
income from uranium loan fees were to reduce, and other sources of funding were
to become unavailable. The directors review rolling forecasts of the Company's
cash requirements on an ongoing basis and currently maintains a cash balance
adequate to meet expected cash requirements for the forward 12 month period.
3. URANIUM HOLDINGS
30th June 2007 30th June 2007
US$ US$
Cost Market value
2,300,000 lbs of U3O8 108,366,000 311,650,000
200,000 kgU of UF6 64,260,000 71,800,000
--------- ---------
172,626,000 383,450,000
--------- ---------
Notes to the financial statements
For the period ended 30th June 2007
URANIUM HOLDINGS (continued)
The market value of U3O8 is taken as the average of (i) the month end UxC U3O8
spot price indicator (as published by Ux Consulting Company, LLC in its Ux
weekly publication) and (ii) the month end TradeTech U3O8 exchange value (as
published by TradeTech, LLC in the Nuclear Market Review), ("the Average U3O8
Published Price"), and that of UF6 is taken as the average of (i) the month end
UxC UF6 spot NA price and (ii) the month end TradeTech UF6 value, ("the Average
UF6 Published Price").
At 30th June 2007, 642,000 lbs of U3O8 (US$32,853,000 at cost;; US$86,991,000 at
market value) was on loan to third parties. The uranium on loan was
collateralised to its replacement value by a guarantee issued to the Company by
the parent company of the borrower.
4. TRADE AND OTHER RECEIVABLES
30th June 2007
US$
Accrued loan fee 1,308,021
---------
1,308,021
=========
5. SHARE CAPITAL
30th June 2007
US$
Authorised
85,000,000 Ordinary Shares 850,000
of US$0.01 each
=========
Issued and fully paid
=========
41,250,000 Ordinary Shares 412,500
of US$0.01 each
=========
Rights of shareholders
The Ordinary Shares carry the right to vote, the right to receive all dividends
declared by the Company and on a winding up will have the right to share pro
rata in the surplus assets of the Company. The shares carry no right to fixed
income.
6. SHARE-BASED PAYMENTS
Equity-settled share option
The Company issued the Custodian an option over shares representing 2,475,000 of
the Company's issued ordinary share capital at the time of admission to AIM. The
option was granted to reward the Custodian for its services in relation to the
Company issuing shares and obtaining admission to AIM.
The grant of the option was conditional upon the Company's admission to AIM and
vested on the date of admission. The option may be exercised at any time (or
times) during the period commencing on 21st July 2008 and ending on 21st July
2011. The exercise price of the option is fixed at GBP2.05 per share.
Options Weighted average
exercise price
US$
Outstanding at beginning of period - -
Granted during the period 2,475,000 3.79
Forfeited during the period - -
Exercised during the period - -
Expired during the period - -
Outstanding at the end of the period 2,475,000 3.79
Exercisable at the end of the period - -
Notes to the financial statements
For the period ended 30th June 2007
SHARE BASED PAYMENTS (continued)
The inputs into the Black-Scholes model are as follows:
Weighted average share price US$3.79
Weighted average exercise price US$3.79
Expected volatility 11.56%
Expected life 5 years
Risk free rate 4.84%
Expected dividends nil
Expected volatility was determined by calculating the historical volatility of
U3O8, the underlying asset in which the Company is invested, over the past 3
years. The expected life used in the model was based on management's expectation
that the option will be exercised at the end of the life of the option.
The Company recognised total expenses of US$2,215,868 representing the
equity-settled share-based payment to the Custodian for its services in relation
to the Company issuing shares and obtaining admission to AIM during the period.
The expense has been recognised directly in equity along with other admission
expenses.
7. EARNINGS PER SHARE
28th June 2006
to
30th June 2007
US$
Earnings
Loss for the purposes of basic and diluted earnings per share (518,896)
===========
Number of shares
Weighted average number of ordinary shares for the purposes
of basic earnings per share 34,423,973
Effect of dilutive potential ordinary shares:
share options 921,161
-----------
Weighted average number of ordinary shares for the purposes
of diluted earnings per share 35,345,134
===========
Basic loss per share US$0.015
===========
Diluted loss per share US$0.015
===========
8. TRADE AND OTHER PAYABLES
30th June 2007
US$
Advisory fee payable 319,542
Accrued expenses 177,902
---------
497,444
=========
Notes to the financial statements
For the period ended 30th June 2007
9. RELATED PARTY TRANSACTIONS
The following are related parties to the Company:
A C Pickford - Non-executive Director
W Scott - Non-executive Director
M S Travis - Non-executive Director
K H Williams - Non-executive Director
Nufcor International Limited - Custodian
Nufcor Capital Limited - Adviser
On 21st July 2006, Nufcor International Limited, the Custodian, subscribed for
32,999,998 shares in the Company for the consideration of US$120,038,153. At the
same date the Company granted an option to the Custodian to acquire 2,475,000
shares in the Company at GBP2.05 per share as further described in Note 6. At
30th June 2007, the Custodian held 3,300,000 shares (8% of issued shares) in the
Company and the option to acquire a further 2,475,000 shares as described above.
During the period the Company purchased 2,100,000 lbs U3O8 from the Custodian
for the consideration of US$97,766,000. The purchases were contracted under arms
length terms. The company also paid the Custodian a fee of US$313,882 in respect
of services performed in connection with the cash placement of shares on 2nd May
2007.
During the period the Company entered into a location swap agreement with
Nuclear Fuel Corporation of South Africa (Pty) Limited ("Nufcor SA"), a party
related to the Custodian, to swap 995,000 lbs U3O8 held by the Company at one
facility in exchange for an equal quantity of U3O8 held by Nufcor SA at a
different facility. The location swap was performed for mutual benefit and for
no monetary consideration. As at 30th June 2007, the Company had swapped 639,000
lbs U3O8 under the agreement.
During the period the Company entered into a location swap agreement with the
Custodian, to swap 152,000 lbs U3O8 held by the Company in the Custodian's
account at one facility in exchange for an equal quantity of U3O8 held by the
Custodian at a different facility. The location swap was performed for mutual
benefit and for no monetary consideration.
Mr K H Williams, a director of the Company, is also a director of the Custodian.
The Adviser is, in turn, a wholly owned subsidiary of the Custodian. The Company
has an Advisory Services Agreement with the Adviser and the Custodian pursuant
to which the Adviser advises on regulated investment activities, provides market
information to the Board and, on the instruction of the Board, identifies
opportunities to acquire, sell and lend uranium.
The Adviser provides advisory services to the Company, having received
authorisation to undertake regulated activities from the United Kingdom
Financial Services Authority and replaced Blueprint Capital Management LLP as
Investment Adviser on 24th May 2007. The Company pays the Adviser a monthly fee
in arrears equal to one twelfth of 1% of the total market value of the uranium
owned by the Company. Advisory fees charged in the period totalled US$1,917,077,
(of which US$624,972 was charged by Nufcor Capital Limited), and the sum of
US$319,542 was outstanding as at 30th June 2007.
Non-executive directors are entitled to fees totalling GBP117,000 per annum. The
highest paid non-executive Director receives a fee of GBP40,000 per annum.
During the period the non-executive directors were paid additional fees
totalling US$46,088 in respect of services performed in connection with the cash
placement of shares on 2nd May 2007.
Mr A C Pickford, a director of the Company, is Chairman of Mercator Trust
Company Limited ("Mercator"), the Company's administrator. Mercator is entitled
to an annual administration fee. During the period fees totalling US$125,022
were charged, and the administrator was paid an additional fee of US$26,042 in
respect of services performed in connection with the cash placement of shares on
2nd May 2007. The sum of US$50,000 was outstanding as at 30th June 2007. Mr A C
Pickford holds 12,195 shares (0.03%) in the Company.
Reconciliation of net asset value to published net asset value ("NAV")
For the period ended 30th June 2007
30th June Per
2007 Share
US$ US$
Total NAV per financial statements 180,883,792 4.39
Market value adjustment for U3O8 and UF6
holdings 210,824,000 5.11
--------- ---------
Published and adjusted NAV 391,707,792 9.50
========= =========
Converted to Sterling at US$2.0064 / GBP4.73
GBP1.00 =========
Diluted adjusted NAV
Number of shares in issue 41,250,000
Exercise of options at GBP2.05 2,475,000 10,179,972
--------- ---------
Diluted adjusted NAV 401,887,764 9.19
========= =========
Converted to Sterling at US$2.0064 / GBP4.58
GBP1.00 =========
The market value of U3O8 is taken as the Average U3O8 Published Price, and that
of UF6 as the Average UF6 Published Price.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UBARRBSRWAAR
Nufcor Uranium (LSE:NU.)
Historical Stock Chart
From May 2024 to Jun 2024
Nufcor Uranium (LSE:NU.)
Historical Stock Chart
From Jun 2023 to Jun 2024
