RNS Number:0396U
Uranium Resources PLC
30 March 2007
30 March 2007
Uranium Resources plc ('Uranium Resources' or 'the Company')
Interim Results
Uranium Resources plc, the AIM listed uranium exploration and development
company focused in Southern Africa, is pleased to announce its results for the
six month period ended 31 December 2006. The Directors are pleased to report on
the progress and the achievements made by your Company since the last report.
The focus has primarily been on expanding and developing the Company's portfolio
of uranium licences in the highly prospective Karoo Basin in Southern Tanzania,
where it currently has a land package in excess of 7,600 sq km. Recent results
have been highly encouraging and indicate the economic potential of the region.
In summary, your Company achieved the following:
Tanzanian Exploration:
* Increased the size and strike length of the 'Henri Anomaly' - a further 6
ground radiometric anomalies of >200cps defined within 250m of the Henri
discovery trench
* Including Henri, a total of 8 anomalies have now been identified along a
6km trend at the Mtonya Project and numerous drill targets have now been
generated
* More high grade uranium results have been received from systematic channel
sampling of trenches at Mtonya
* Best trench results from channel samples include:
* 22,950 ppm (2.29%) U or 27,081 ppm (2.71%) U3O8
* 20,820 ppm (2.08%) U or 24,567 ppm (2.46%) U3O8
Tanzanian Land Acquisition:
* Acquired a 42.5% interest in tenements in the prospective Karoo Basin
sediments in Tanzania
* Tenements cover 3,774 sq km, increasing the Company's total tenement
holding in Tanzania to 7,640 sq km
* New tenements build Uranium Resources' position as one of the largest
exploration land holders in the Karoo Basin in southern Tanzania
Corporate:
* Completed a fund raising of #2 million in cash via a share issue in
January 2007, giving the Company a cash position of #2.4 million
* James Pratt - a geologist with over 18 years' experience in the mining and
exploration industry, principally in Australia and Africa appointed a
non-executive director. James is Managing Director of Leopard Minerals plc,
an unlisted public company. James has been involved in the management of
successful publicly listed uranium exploration companies since 2004
* Leon Pretorius and Peter Harold resigned from the Board
* Uranium Resources continues to explore a stock exchange listing on the ASX
as well as potential mergers with existing listed uranium companies
The 2007 Tanzanian Exploration Season:
The Company is currently preparing for the Tanzanian field season in May/June
2007.
Exploration will include:
* Further trenching;
* ground radiometric surveys;
* airborne radiometric surveys;
* soil sampling; and
* drilling
The Company plans to commence drilling in June 2007 with the aim of completing
approximately 10,000m this season. The drilling programme is being funded by its
farm-in partners Western Metals Limited.
Finally, being at the exploration stage we are not producing revenue and as such
I am reporting a pre-tax loss of #433,438, including a loss attributable to
share based payments of #258,000.
Hugh Warner
Director
30 March 2007
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006
Unaudited Unaudited Audited
Six months ended Six months ended Eighteen
31 December 2006 31 December 2005 months ended
30 June 2006
Notes # # #
Group turnover - - -
Cost of sales - - -
Gross profit - - -
Administrative expenses before
amortisation of goodwill and
charge for share based
payments (169,618) (167,367) (421,437)
Amortisation of goodwill 4 (17,500) (10,208) (27,708)
Share based payments 7 (258,000) - (66,667)
Total administrative expenses (445,118) (177,575) (515,812)
Group operating loss (445,118) (177,575) (515,812)
Interest receivable 11,680 13,710 35,302
Loss on ordinary activities
before taxation (433,438) (163,865) (480,510)
Taxation 2 - - -
Loss on ordinary activities
after taxation (433,438) (163,865) (480,510)
Loss per ordinary share (pence)
Basic 3 (0.21p) (0.079p) (0.24p)
Diluted 3 (0.21p) (0.079p) (0.24p)
There were no recognised gains or losses during the above periods except as
stated in the profit and loss account and accordingly no statement of total
recognised gains and losses has been prepared.
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2006
Unaudited Unaudited Audited
31 December 2006 31 December 2005 30 June 2006
Notes # # #
Fixed assets
Intangible assets 4 400,087 339,791 363,470
Current assets
Debtors 15,802 1 2,182
Cash at bank and in hand 484,448 800,232 618,354
500,250 800,233 620,536
Creditors: amounts falling due
within one year (54,013) - (12,489)
Net current assets 446,237 800,233 608,047
Total assets less current
liabilities 846,324 1,140,024 971,517
Provision for liabilities and
charges 5 (24,000) - -
Net assets 822,324 1,140,024 971,517
Capital and reserves
Called up share capital 6 211,000 211,000 211,000
Share premium account 8 1,174,360 1,239,000 1,174,360
Own shares reserve 8 50,245 - -
Share based payments reserve 8 234,000 - -
Profit and loss account 8 (847,281) (309,976) (413,843)
Shareholders' funds 9 822,324 1,140,024 971,517
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006
Unaudited Unaudited Audited
Six months ended Six months ended Eighteen
31 December 2006 31 December 2005 months ended
30 June 2006
Notes # # #
Net cash outflow from operating
activities 10 (179,284) (162,775) (411,130)
Returns on investments and
servicing of finance
Investment income 11,680 13,710 35,302
(167,604) (149,065) (375,828)
Capital expenditure
Investing in exploration 4 (16,547) - (41,178)
Acquisitions and disposals
Acquisition of subsidiary - (50,000) (50,000)
Net cash outflow before
financing (184,151) (199,065) (467,006)
Financing
Applications for shares 50,245 - -
Proceeds from share issues - - 1,150,000
Share issue costs - - (64,640)
Net cash inflow from financing 50,245 - 1,085,360
(Decrease)/increase in cash 11 (133,906) (199,065) 618,354
1. Basis of preparation and going concern
The interim financial information is prepared in accordance with the historical
cost convention and in accordance with applicable accounting standards in the
United Kingdom and the Statement of Recommended Practice "Accounting for Oil and
Gas Exploration, Development, Production and Decommissioning Activities".
The financial information has been prepared on a going concern basis. The
Group's ability to continue as a going concern is contingent upon raising
additional funds to cover appraisal and development activities and working
capital requirements. In the absence of being able to raise funds, the going
concern basis may not be appropriate with the result that the Group may have to
realise its assets and extinguish its liabilities other than in the ordinary
course of business at amounts different from those stated in this interim
report. No allowance for such circumstances has been made in this interim
report as the directors believe that the Group will be able to raise further
funds in the future. The Company has raised #2,000,000 before expenses from
share placing's after 31 December 2006 to provide additional working capital and
fund its exploration projects.
The results for the six months ended 31 December 2006 are unaudited and do not
constitute statutory accounts as defined in section 240 of the Companies Act
1985. They have been prepared using accounting bases and policies consistent
with those used in the preparation of the financial statements of Uranium
Resources Plc for the eighteen months ended 30 June 2006.
The comparative figures for the eighteen months ended 30 June 2006 are extracted
from the statutory financial statements which have been filed with the Registrar
of Companies and which contain an unqualified audit report and did not contain
statements under Section 237(2) or (3) of the Companies Act 1985.
2. Taxation
No liability to UK or overseas taxation has arisen during the period and no
provision for deferred tax was considered necessary.
3. Loss per ordinary share
The basic and diluted loss per ordinary share have been calculated using the
loss for the six months ended 31 December 2006 of #433,438 (six months to 31
December 2005 - loss of #163,865; eighteen months ended 30 June 2006 - loss of
#480,510). The basic and diluted loss per ordinary share was calculated using a
weighted average number of ordinary shares in issue of 211,000,000 (six months
to 31 December 2005 - 208,475,410; eighteen months ended 30 June 2006 -
198,358,879).
4. Intangible assets
The intangible assets can be summarised as follows:
Exploration
and appraisal
expenditure
Goodwill Total
# # #
Cost
At 1 July 2006 41,179 349,999 391,178
Additions 54,117 - 54,117
At 31 December 2006 95,296 349,999 445,295
Amortisation
At 1 July 2006 - (27,708) (27,708)
Amortisation for the period - (17,500) (17,500)
At 31 December 2006 - (45,208) (45,208)
Net book value
At 31 December 2006 95,296 304,791 400,087
At 30 June 2006 41,179 322,291 363,470
The goodwill of #349,999 arose on the acquisition of the
Company's subsidiary undertaking, Deep Yellow Tanzania Limited during the period
ended 30 June 2006. Goodwill is being amortised over the Directors' estimate of
its useful economic life of 10 years until production commences. On commencement
of production, goodwill will be amortised on a unit-of-production basis based on
proven and probable reserves.
In accordance with the accounting policies, the Directors have
assessed the value of the exploration and appraisal expenditure carried in the
accounts as intangible fixed assets. In the opinion of the Directors, no
impairment provision is considered necessary against the exploration and
appraisal expenditure at 31 December 2006.
5. Provision of liabilities and charges
Unaudited Unaudited Audited
31 December 2006 31 December 30 June
2006 2006
# # #
At 1 July 2006 - - -
National insurance on share-based payments 24,000 - -
At 31 December 2006 24,000 - -
The charge for national insurance on share-based payments has
been calculated by reference to the difference between the market value of the
underlying shares at the balance sheet date and the exercise price of the share
options, as required by Urgent Issues Task Force ("UITF") 25.
6. Share capital
Unaudited Audited
31 December 30 June
2006 2006
# #
Authorised
10,000,000,000 ordinary shares of 0.1p each 10,000,000 10,000,000
Allotted, called up and fully paid
211,000,000 ordinary shares of 0.1p each 211,000 211,000
The share capital and the share options at the beginning and the end of the
period are summarised below:
Number of shares Number of
options
At 1 July 2006 211,000,000 10,000,000
Share options cancelled on resignation of director - (10,000,000)
Share options granted - 30,000,000
At 31 December 2006 211,000,000 30,000,000
The details of share options outstanding at 31 December 2006 are as follows:
Number of options Option price Exercisable between
15,000,000 2.5p 29/11/2006 to 28/11/2011
15,000,000 5p 29/11/2006 to 28/11/2011
30,000,000
7. Share based payments
Unaudited Unaudited Audited
six months ended six months ended Eighteen months
31 December 2006 31 December 2005 ended 30 June 2006
# # #
The Group recognised the following charge
in the profit and loss accounts in respect
of its share based payment plans:
As required by Financial Reporting
Standard ("FRS") 20 234,000 - -
As required by UITF 25 (note 5) 24,000 - -
258,000 - -
Share based payments (continued)
These are based on the requirements of FRS 20 and UITF 25 on share based
payments. For this purpose, the weighted average estimated fair value for the
share options granted was calculated using a Black-Scholes option pricing model.
The volatility measured at the standard deviation of expected share price return
is based on statistical analysis of the share price over the 6 month period to
31 December 2006 and this has been calculated at 27.5%. The risk free rate has
been taken as 5%. The estimated fair values and other details which have been
processed into the model are as follows:
Number of options Grant date Option price Fair value Expected exercise
date
# # # #
15,000,000 28/11/2006 2.5p 1.15p 28/11/2011
15,000,000 28/11/2006 5p 0.41p 28/11/2011
30,000,000
8. Statement of movements of reserves
The movements in the group's reserves during the period were as follows:
Share-based
Share Own shares payments Profit
premium reserve reserve and loss
# # # #
At 1 July 2006 1,174,360 - - (413,843)
Retained losses for the period - - - (433,438)
Cost of share-based payments (note 7) - - 234,000 -
Applications for shares - 50,245 - -
At 31 December 2006 1,174,360 50,245 234,000 (847,281)
The application for shares of #50,245 represents funds received from prospective
shareholders of the Company for which shares were allotted after the balance
sheet date.
9. Reconciliation of movements in shareholders' funds - equity only
Unaudited Unaudited Audited
Six months to Six months to Year ended
31 December 2006 31 December 2005 30 June 2006
# # #
Loss for the period (433,438) (163,865) (480,510)
Dividends - - -
(433,438) (163,865) (480,510)
Applications for shares 50,245 - -
Shares issued (net of expenses) - 300,000 1,385,360
Share-based payments (note 7) 234,000 - 66,667
(149,193) 136,135 971,517
Opening shareholders' funds 971,517 1,003,889 -
Closing shareholders' funds 822,324 1,140,024 971,517
10. Reconciliation of operating loss to net cash outflow from operating
activities
Unaudited Unaudited Audited
Six months to Six months to Year ended
31 December 2006 31 December 2005 30 June 2006
# # #
Group operating loss (445,118) (177,575) (515,182)
Amortisation of goodwill 17,500 10,208 27,708
(Increase)/decrease in debtors (13,620) 3,387 (2,182)
Increase in creditors 3,954 - 12,489
Loss on disposal of fixed assets - 1,205 -
Share based payments charge 258,000 - 66,667
Net cash outflow from operating
activities (179,284) (162,775) (411,130)
11. Analysis of changes in net funds
Audited Unaudited
1 July 2006 Cash flows 31 December 2006
# # #
Cash at bank and in hand 618,354 (133,906) 484,448
12. Subsequent Events
The Company issued 80,000,000 new ordinary shares at 2.5p each in January 2007
to raise additional capital of#2,000,000 before expenses.
**ENDS**
For further information please visit www.uraniumresources.co.uk or contact:
Ross Warner Uranium Resources plc Tel: 07760 487 769
James Pratt Uranium Resources Plc Tel: 07747 832 043
Hugh Warner Uranium Resources Plc Tel: +618 9388 3006
Hugh Oram Nabarro Wells & Co. Limited Tel: 020 7710 7400
Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477
Felicity Edwards St Brides Media & Finance Ltd Tel: 020 7242 4477
This information is provided by RNS
The company news service from the London Stock Exchange
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