TIDMURA
RNS Number : 3392S
Uranium Resources PLC
18 November 2011
Uranium Resources plc / Market: AIM / Epic: URA / Sector:
Exploration
18 November 2011
Uranium Resources plc ('Uranium Resources') or ('the
Company')
Final Results and notice of AGM
Uranium Resources plc, the AIM listed uranium exploration and
development company, announces its results for the year ended 30
June 2011 and gives notice of its Annual General Meeting to be held
at the offices of Sprecher Grier Halberstam LLP, 5th Floor, One
America Square, Crosswall, London EC3N 2SG on 14th December 2011 at
10.00 am.
Highlights
-- The successful 2010 drilling programme laid down the
foundation for discovery-focused drilling at Mtonya
-- On-going diamond drilling at Mtonya - positive results received to date:
o Mineralised roll-fronts confirmed at depth
o Uranium mineralisation and geology appear favourable for
in-situ recovery
-- Positive results lead to increase in current drilling programme from 6,850m to 8,000m
-- Completed geology-mapping and surface sampling programme to
evaluate the Rare Earths Elements potential at Gundua (Eland
project area) - assays pending
-- Successful raising of approximately US$7.5m to fund further exploratory work
Uranium Resources Managing Director, Alex Gostevskikh, said "The
year under review has seen your Company make considerable progress
towards achieving its goal of defining a substantial uranium
deposit at Mtonya, Tanzania.
"The initial results of the ongoing 2011 programme have been
positive, and appear to confirm our proprietary model of
laterally-extensive roll-front uranium mineralisation at Mtonya.
The significance of the 2011 results is in discovering
uranium-bearing formations that are amenable to in-situ recovery -
the most economically effective and environmentally benign method
of uranium extraction. We anticipate the thicknesses and grades of
our mineralisation strata to be at par with such discoveries as
Nyota and Kayelekera, which form an emerging East African uranium
province."
Managing Director's Report
The year ended 30 June 2011 was another active period for the
Company, which has continued to advance exploration projects.
The last twelve months straddled two drilling programmes and the
positive trend set by the final results of the 2010 campaign has
been built upon by those so far received from the on-going 2011
programme. All have been consistent with our internal expectations,
specifically regarding the form and extent of mineralisation at the
site.
Drilling success has been mirrored at the Treasury level. Over
the course of the year, we raised a little under US$7.5 million in
three tranches at progressively rising valuations. As a result of
the fund raisings, our major shareholder, Estes Limited ('Estes'),
has increased their stake in the Company to 45.1%, a vote of
confidence in both our key prospect and also in our plans to
advance Mtonya through the development cycle. With financing in
place we anticipate the year ahead will continue in the same vein
as the previous twelve months and we look forward to reporting
further positive news flow from the 2011 programme.
Exploration
Mtonya
The Company's primary project, Mtonya, is located 100 km east of
the district capital of Songea. Its geology consists of Usagaran
orogenic basement rocks in the west and sediments of the Luwegu sub
basin in the east. Sandstone-hosted uranium mineralisation in the
Karoo sandstone units is thought to be similar to that of
Atomredmetzoloto's Nyota deposit, which contains a measured and
indicated resource of 65.5 million pounds U3O8. The Mtonya project
is currently the main target of the Company's on-going two-pronged
exploration efforts targeting both the deep and shallow
mineralisation potential.
The results of the 2010 drilling campaign were finalised in
March 2011 and led to significant refinements of the Company
exploration model. Being overwhelmingly positive, these results
were the platform for the subsequent GBP3million equity placement
to the Group's cornerstone investor, Estes.
The funds were put to immediate use and we commenced our latest
drilling programme in May 2011. Once completed, the programme will
comprise approximately 6,850 metres of diamond drilling. We are
still awaiting many assay results from the programme. However, as
announced on 20 October 2011, the results that have been received
to date on our Mtonya drilling programme have been very
encouraging.
We are excited about Mtonya's potential and we are very pleased
with the results that are coming from the drilling programme. By
confirming mineralised roll-fronts at depth, we have achieved one
of the most important milestones in our exploration at Mtonya.
Sandstone-hosted targets yield world-class deposits amenable to
in-situ recovery - the most economically effective and
environmentally benign method of uranium extraction.
We are observing evidence of stacked roll-fronts in rock
formations that appear to be suitable for in-situ recovery. We are
particularly impressed with significant continuities of the
roll-fronts we have identified and we are looking forward to
results that improve their overall grade and thickness. The
geochemical data from our latest drilling continues to confirm and
enhance our proprietary model and substantially improves our drill
targeting.
The processing of the rest of the assay results and the
completion of the 2011 drilling campaign is expected to lead to
resource-definition drilling at Mtonya. We continue drilling very
widely-spaced holes intended to establish the magnitude of
mineralised roll-fronts and to generate targets for future
reverse-circulation or air core drilling.
At the same time, we are continuing to test the near-surface
mineralisation and generate encouraging results, substantially
tending the limits of already known mineralisation.
Ruvuma
The Ruvuma project is located in southern Tanzania. The two
principal targets within this area include Foxy and Eland.
The Company has conducted a thorough compilation of data for
Foxy and is augmenting its regional database to enhance the
understanding of the project with a view to generating drill
targets based on the updated geological model. The exploration
strategy for Foxy will be developed once this analysis and field
follow-up have been completed.
In 2010, we carried out a comprehensive review of all available
data on Eland with the objective of determining the merits of
further work. Based on this review the Directors view Eland as a
valid carbonatite target and a limited Rare Earth Elements ('REE')
focussed field programme is currently in progress.
In conclusion further fieldwork is required to evaluate both the
Eland and Foxy projects. However, the board are encouraged by the
data received to date and consider these two prospects important
elements of the Group's medium to long-term prospect pipeline.
Ruhuhu
The Ruhuhu tenement located in southwest Tanzania spans the
upper Karoo sequence of the Ngaka sub basin in the Ruhuhu basin,
approximately 70 km northwest of Songea.
The main target within this project is the Pedro prospect. In
2007, we conducted a limited ground fieldwork programme with
helicopter support during which a grab sample grading 2,400 ppm
U3O8 was collected. The geology of Pedro appears to bear
similarities with other uranium deposits in the region and is being
considered for follow-up work.
In spring 2011, the Company conducted a thorough collation of
all available data and review of past work, which generated a
number of field follow-up targets.
Fundraising
The Company completed the following share placings during or
subsequent to the financial year ended 30 June 2011:
Date New Shares Price per Share Gross Proceeds
(GBP) (US$)
------------------ ------------ ---------------- ---------------
23 July 2010 40,000,000 GBP0.02 $ 1,219,360
------------------ ------------ ---------------- ---------------
26 November 2010 35,250,000 GBP0.0255 $ 1,418,670
------------------ ------------ ---------------- ---------------
5 April 2011 100,000,000 GBP0.03 $ 4,839,900
------------------ ------------ ---------------- ---------------
The July 2010 placing was subscribed to by Uranium Resources'
major shareholder and strategic investor Estes and also Director,
Ross Warner and former Director, Hugh Warner. The November 2010
placing was subscribed to by Estes and a number of new investors.
The Placing in April 2011 was solely subscribed to by Estes, their
resulting shareholding at 30 June 2011 was 262,500,000 shares or
45.1% of the issued share capital of the Group.
Management Team
On the 14 June 2011 Hugh Warner resigned from the board, who
wish to take this opportunity to thank Hugh for his contribution to
advancing the Group over the years. The board welcomed the
appointment of Dimitri Pashov as a non-executive director of the
company on 15 June 2011. Mr Pashov was nominated by and appointed
in accordance with an agreement made with Estes, further
strengthening the relationship between the two companies. Mr Pashov
is a qualified English solicitor and Russian lawyer and has worked
for various international law firms, banks and companies since
1994.
Financial Results
Uranium Resources is at the exploration stage of its
development. It is not producing revenue and as such I am reporting
a pre-tax loss of $1,159,000 for the year ended 30 June 2011 (2010:
loss $1,015,000) including a non-cash cost of $229,000 (2010: $Nil)
in respect of share based payments.
The Company confirms that its annual report and financial
statements for the year ended 30 June 2011 will be posted to
shareholders on the 21 November 2011 and will be available on the
Company's website. The Notice of AGM will be posted to shareholders
with the annual report and financial statements
Outlook
The outlook for Uranium Resources remains highly positive: the
Company has a solid portfolio of assets from which to drive growth
and create significant shareholder value; it has secured a
cornerstone investor; and it has a strong, focused management team
that is rapidly developing the Company's uranium assets.
During the past two years, the Company has been studying its
asset base and prioritising exploration targets through the
acquisition and comprehensive review of regional and district data.
Our thorough process has been vindicated by the progress made
during the year, particularly at our most advanced project, Mtonya
which has been our main focus. We look forward to advancing Mtonya
further by careful analysis of the substantial amounts of data that
we will have collected during the 2011 drilling programme. The
widely-spaced diamond drill holes continue to generate follow-up
targets for reverse-circulation drilling that we expect to be the
foundation of our resource-definition programme.
Aside from validating the potential of the resource, the
drilling results received to date serve to highlight the calibre of
our team whose meticulous research and first class planning
continues to bring us ever closer to the point of resource
definition at Mtonya, and also bodes well for the development of
our less advanced prospects elsewhere in Tanzania.
Finally, I would like to take this opportunity to thank my
fellow directors and our shareholders for their dedication and
support and look forward to what I believe is a highly promising
future.
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2011
2011 2010
US$'000 US$'000
(restated)
Administrative expenses (1,086) (1,020)
--------- ------------
Group operating loss (1,086) (1,020)
Interest payable (75) -
Interest receivable 2 5
--------- ------------
Loss before taxation (1,159) (1,015)
Taxation - -
--------- ------------
Loss for the year (1,159) (1,015)
Other comprehensive income
Exchange differences on translating foreign operations 204 (308)
--------- ------------
Total comprehensive loss attributable
to the equity holders of the parent (955) (1,323)
========= ============
Loss per share (cents)
Basic and Diluted (0.24) (0.28)
The results shown above related entirely to continuing
operations and are attributable to equity shareholders of the
Company.
Consolidated Statement of Financial Position
As at 30 June 2011
2011 2010
US$'000 US$'000
(restated)
Assets
Non-current assets
Property, plant & equipment - 15
Exploration and evaluation assets 7,704 5,008
-------- ------------
7,704 5,023
-------- ------------
Current assets
Receivables 411 20
Cash and cash equivalents 4,137 551
-------- ------------
4,548 571
-------- ------------
Total Assets 12,252 5,594
-------- ------------
Liabilities
Current liabilities
Trade and other payables (160) (199)
-------- ------------
Total Liabilities (160) (199)
-------- ------------
Net Assets 12,092 5,395
======== ============
Equity
Capital and reserves attributable to
equity holders
Share capital 946 668
Share premium 15,743 8,598
Foreign exchange reserve (104) (308)
Retained losses (4,493) (3,563)
Total Equity 12,092 5,395
======== ============
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2011
Foreign
currency
Share Share translation Retained Total
capital premium reserve losses equity
US$'000 US$'000 US$'000 US$'000 US$'000
At 1 July 2009 (restated) 482 5,126 - (2,548) 3,060
Total comprehensive
income - - (308) (1,015) (1,323)
Transactions with owners:
Issue of share capital 186 3,502 - - 3,688
Cost of share issue - (30) - - (30)
--------- --------- ----------------- ---------------- ---------------------
Total transactions with
owners 186 3,472 - - 3,658
--------- --------- ----------------- ---------------- ---------------------
At 30 June 2010 (restated) 668 8,598 (308) (3,563) 5,395
Total comprehensive
income - - 204 (1,159) (955)
Transactions with owners:
Share based payments - - - 229 229
Issue of share capital 278 7,200 - - 7,478
Cost of share issue - (55) - - (55)
--------- --------- ----------------- ---------------- ---------------------
Total transactions with
owners 278 7,145 - 229 7,652
At 30 June 2011 946 15,743 (104) (4,493) 12,092
========= ========= ================= ================ =====================
Consolidated Statement of Cash Flows
For The Year Ended 30 June 2011
2011 2010
US$'000 US$'000
(restated)
Cash flows from operating activities
Loss for the year (1,159) (1,015)
Share based payments charge 229 -
Interest income (2) (5)
Depreciation 2 -
Foreign exchange 75 -
(Increase)/ decrease in receivables - 20
Decrease in payables (39) (30)
--------- ------------
(894) (1,030)
--------- ------------
Investing activities
Acquisition of subsidiaries, net of cash acquired
(note 21) - (2,287)
Funds used for exploration and evaluation (2,872) (419)
Funds used for plant and equipment - (16)
Interest received 2 5
--------- ------------
Net cash used in investing activities (2,870) (2,717)
--------- ------------
Financing activities
Cash proceeds from issue of shares 7,478 3,225
Share issue costs paid (55) (30)
--------- ------------
Net cash inflow from financing 7,423 3,195
--------- ------------
Increase/(decrease) in cash and cash equivalents 3,659 (552)
Foreign exchange movements on cash (73) (55)
Cash and cash equivalents at beginning of the
year 551 1,158
--------- ------------
Cash and cash equivalents at the end of the year 4,137 551
========= ============
Notes to the Financial Statements
For the Year Ended 30 June 2011
1. Accounting policies
The principal accounting policies adopted in the preparation of
the financial statements are set out below. The policies have been
consistently applied to all the years presented, unless otherwise
stated. Both the parent company financial statements and the Group
financial statements have been prepared and approved by the
Directors in accordance with International Financial Reporting
Standards IFRSs and IFRIC interpretations, issued by the
International Accounting Standards Board (IASB) as endorsed for use
in the EU ('IFRSs') and those parts of the Companies Act 2006 that
are applicable to companies that prepare their financial statements
under IFRS.
The financial information for the years ended 30 June 2011 and
30 June 2010 does not constitute statutory accounts as defined by
section 435 of the Companies Act 2006 but is extracted from the
audited accounts for those years. The 30 June 2010 accounts have
been delivered to the Registrar of Companies. The 30 June 2011
accounts will be delivered to Companies House within the statutory
filing deadline. The auditor's report on those financial statements
was and did not contain a statement under s498 (2) - (3) of
Companies Act 2006.
Restatement of presentational currency
Effective 1 July 2010, the Group's presentation currency changed
from pounds sterling ('GBP') to the US dollar ('$'). This change
was made to make the results of the Group and Company more
comparable with AIM listed peer mining companies, which tend to
report in US dollars, consequently the Directors considered that
the results of the Group and Company should be reported in US
dollars.
Under IFRS the change to the US Dollar as presentation currency
is a change in accounting policy and consequently requires the
restatement of the prior year balances. The financial information
for the year ended 30 June 2010 has been re-presented in US
dollars. The comparatives were translated for the statement of
financial position using $:GBP exchange spot rate on that date,
being $1.5067:GBP1, for equity balances at the prevailing
historical rate since 1 July 2009 and for the statement of
comprehensive income using the average $:GBP exchange rate during
the year being $1.5814:GBP1, and for the opening balances as at 1
July 2009 using the $:GBP spot rate on that date being
$1.6565:GBP1.
Resulting exchange differences have been taken to the foreign
exchange reserve. Total equity at 30 June 2010 was reported in
pounds sterling as GBP3,580,381 (2009: GBP1,847,593) which was
represented into US$ at 30 June 2010 as $5,395,000 (2009:
$3,060,000).
Going concern
The Group plans to continue its extensive drilling programme in
the next twelve months and beyond, which is expected to provide the
Directors with more evidence in respect of the Group's Uranium
projects and project pipeline.
As at the date of this report the Group has in excess of
$2.2million of cash therefore following a review of the Group's
financial position and its budgets and plans, the Directors remain
confident that the Group's current cash position will enable the
Group to fully finance its future working capital and exploration
commitments requirements beyond the period of 12 months of the date
of this report.
The current committed drilling programme is fully funded from
the Group's existing cash resources as at the date of this report.
The Group will be evaluating discretionary exploration commitments
that could require additional funds to be raised prior to the
fourth quarter of 2012, this date could be sooner should these
works be accelerated and commenced prior to the fourth quarter of
2012, however the Directors remain confident that should additional
funds be required that these funds will be made available to the
Group from existing or future shareholders.
2. Segmental reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision--maker.
The chief operating decision--maker, who is responsible for
allocating resources and assessing performance of the operating
segment and that make strategic decisions, has been identified as
the Board of Directors.
The Group had no operating revenue during the period.
The Group operates in one segment, the exploration and
evaluation of uranium. The Parent Company operates a head office
based in the United Kingdom which incurred certain administration
and corporate costs. The Group's operations span two countries,
Tanzania and the United Kingdom.
Segment result
Segment results
2011 2010
US$'000 US$'000
(restated)
Uranium (Tanzania) (21) (23)
Administration and Corporate
(UK) (1,065) (997)
-------- ------------
Total of all segments (1,086) (1,020)
-------- ------------
Finance expense (75) -
Finance income 2 5
-------- ------------
Loss before and after tax (1,159) (1,015)
======== ============
The Group's share based payment charge is included within the
United Kingdom ('UK') segment result. The Group's depreciation,
amortisation and capital expenditure is incurred entirely within
the Tanzanian segment.
Segment assets and liabilities Non-Current Assets Non-Current Liabilities
2011 2010 2011 2010
US$'000 US$'000 US$'000 US$'000
(restated) (restated)
Uranium (Tanzania) 7,704 5,023 - -
Administration and Corporate - - - -
(UK)
--------- ----------- ----------- -------------
Total of all segments 7,704 5,023 - -
========= =========== =========== =============
Total Assets Total Liabilities
Segment assets and liabilities 2011 2010 2011 2010
US$'000 US$'000 US$'000 US$'000
(restated) (restated)
Uranium (Tanzania) 8,127 5,050 67 149
Administration and Corporate
(UK) 4,125 544 93 50
--------- ----------- ----------- -------------
Total of all segments 12,252 5,594 160 199
========= =========== =========== =============
3. Loss per share
The basic loss per ordinary share is 0.24 cents (2010: 0.28
cents) and has been calculated using the loss for the financial
year of US$1,159,000 (2010: loss US$1,015,000) and the weighted
average number of ordinary shares in issue of 488,875,257 (2010:
349,888,887).
The diluted loss per share has been kept the same as the basic
loss per share as the conversion of share options decreases the
basic loss per share, thus being anti-dilutive. Details of
potentially dilutive shares are discussed in note 15.
4. Staff costs (including Directors)
2011 2010
US$'000 US$'000
(restated)
Wages, salaries and fees 686 560
Social security costs 54 56
Other benefits 3 -
Share-based payments charge (note 15) 229 -
--------- -----------------
972 616
--------- -----------------
Transferred to intangible assets (279) -
--------- -----------------
693 616
========= =================
Therewere a total of 8 (2010: 8) employees during the year.
Key management of the Group are considered to be the Directors
of the Company and their remuneration was as follows:
Fees/ allowances/ Other benefits Share Total Total
salaries based 2011 2010
payments
US$'000 US$'000 US$'000 US$'000 US$'000
(restated)
Hugh Warner (1) 68 - - 68 57
Ross Warner 57 - - 57 57
James Pratt 57 - - 57 57
Alex Gostevskikh (3) 268 3 229 500 266
Andrew Lewis 36 - - 36 38
Viacheslav Medvedev - - - - -
Dimitri Pashov (2) - - - - -
------------------ --------------- ---------- -------- -----------
Total Key Management 2011 486 3 229 718 -
------------------ --------------- ---------- -------- -----------
Total Key Management 2010 475 - - - 475
================== =============== ========== ======== ===========
(1) Hugh Warner resigned as a director on 14 June 2011
(2) Dimitri Pashov was appointed as a Director on 15 June
2011
(3) During the period 50% of Alex Gostevskikh's Salary was
capitalised to intangibles. In 2011 this amounted to $134,000
(2010: $Nil).
5. Exploration and evaluation assets
Group Exploration
and evaluation
expenditure
Cost and net book value US$'000
(restated)
At 1 July 2009 2,047
Acquired with subsidiaries 2,752
Currency translation adjustment (210)
Additions 419
---------------------
At 1 July 2010 5,008
Additions 2,483
Transfers from property, plant and equipment 15
Currency translation adjustment 198
---------------------
At 30 June 2011 7,704
=====================
The Group's intangible asset consists entirely of capitalised
exploration and evaluation expenditure. The exploration and
evaluation ("E&E") asset represents costs incurred in relation
to the Group's Tanzanian licences. These amounts have not been
written off to the statement of comprehensive income as exploration
expenses because commercial reserves have not yet been established
or the determination process has not been completed.
The outcome of ongoing exploration and evaluation, and therefore
whether the carrying value of E&E assets will ultimately be
recovered, is inherently uncertain. The Directors have assessed the
value of the uranium exploration and evaluation expenditure carried
as intangible assets, and in their opinion, no further impairment
is necessary. This assessment includes a review of the expiry dates
of licenses and the likelihood of their renewal.
6. Related party transactions
The Company paid $12,000 (2010: $16,000 (AUD$18,000)) to Anglo
Pacific Ventures Pty Ltd, a company related to Hugh and Ross
Warner, for a serviced office under an informal arrangement. Key
management of the Group are considered to be the Directors of the
Company. There are no transactions with the Directors other than
the above, and their remuneration and interests in shares and share
options. The remuneration of individual Directors is shown in the
Directors' Report.
**ENDS**
For further information please visit www.uraniumresources.co.uk
or contact:
Alex Gostevskikh/ Uranium Resources plc Tel: +255 (0) 752 968
062
Ross Warner Tel: +44 (0) 7760 487769
Anthony Rowland/ Ambrian Partners Ltd (Nomad) Tel: +44 (0) 20 7634
4700
Ben Wright
Jeremy King/ Optiva Securities Ltd Tel +44 (0)20 3137
1904
Jason Robertson
Hugo de Salis/ St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Felicity Edwards
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGGWWGUPGUUR
Uranium (LSE:URA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Uranium (LSE:URA)
Historical Stock Chart
From Jul 2023 to Jul 2024
