TIDMURA
RNS Number : 0779B
Uranium Resources PLC
28 March 2013
Uranium Resources Plc / Market: AIM / Epic: URA / Sector:
Exploration
28 March 2013
Uranium Resources plc ('Uranium Resources' or 'the Company')
Half-Year Results
Uranium Resources plc, the AIM listed uranium exploration
company operating in Tanzania, announces its results for the six
month period ended 31 December 2012.
Highlights
-- Development of maiden resource at the Company's flagship Mtonya project is underway
-- 26,485 metre 2012 drilling programme successfully completed
in 2012 to delineate the initial resource at Mtonya
-- Mtonya is expected to host uranium mineralisation amenable to
in-situ recovery, the most cost-effective and environmentally
acceptable method of uranium extraction
-- The Mtonya discovery signals the new and exciting potential
for other Uranium Resources holdings in Tanzanian sedimentary
basins
Post Period End Highlights
-- Entered into a US$1 million loan facility agreement with our
strategic cornerstone investor Estes Limited
-- Maiden N43-101 resource estimate due to be announced in April 2013
Managing Director's Report
Uranium Resources is establishing itself as a leading uranium
exploration company in Africa and I believe the outlook for the
Company is very positive. With a maiden resource at our flagship
Mtonya project to be released imminently, continued expansion of
the resource with further drilling and a planned development path
to prove its economic viability as an in-situ recovery ("ISR")
uranium project, the future for Mtonya and Uranium Resources is
very exciting and I believe we have all the foundations in place to
deliver growth and create significant shareholder value.
Exploration Update
Mtonya
I am pleased to report on Uranium Resources progress as we
continue to advance our flagship Mtonya uranium project ('Mtonya'
or 'the Project') in southern Tanzania towards defining an imminent
maiden resource.
During the period under review we completed a sizeable 26,485
metre, 120-hole core drilling programme at Mtonya, which defined
significant laterally-extensive roll-front uranium mineralisation,
once again confirming our proprietary exploration model and
exploration methodology. Importantly, this roll-front uranium
mineralisation is expected to be amenable to in-situ recovery
('ISR'), the most cost-effective and environmentally acceptable
method of uranium extraction.
The drilling programme, which was fully detailed in a press
release of 25 October 2012, defined uranium mineralisation over
4.5km of strike length in several stacked roll-fronts. The drilling
programme was carried out on a lesser part of the land position on
a relatively coarse grid (200 x 50 metres) and leaves a significant
potential to infill and step-out drilling.
Uranium Resources' exploration programme revealed that the
roll-front widths, thicknesses and grade tenor discovered at Mtonya
are remarkably similar to other world-class roll-front deposits
found in Wyoming's Wind River Basin and Powder River Basin where
Cameco and Uranium One operate successful ISR facilities. Notably,
our Project is located in a highly prospective uranium region in
southern Tanzania, approximately 60 km south of the world-class
Mkuju River sandstone-hosted uranium project, which is operated by
Uranium One.
The maiden resource at the Company's Mtonya discovery is
expected to validate and quantify the Company's exploration work at
the property since 2010. Based only on core drilling and chemical
assays, this estimate will establish a superior quality and
reliability foundation for advancing Mtonya to further resource
drilling and production.
The resource estimate represents a key milestone in the
development of the project. Our future work will concentrate on
infill and step-out drilling to dramatically increase the resource
by taking advantage of the mineralisation being open along strike
and at depth. We continue to pursue a world-class uranium deposit
in southern Tanzania.
In 2013, we are planning to execute pump tests at Mtonya to
determine the host-rock permeability and recoveries.
Further to these developments, post-period end we entered into a
US$1 million loan facility agreement with our strategic cornerstone
investor Estes Limited ('Estes'). The Loan, which is unsecured,
available for a period of 18 months and bears interest at LIBOR,
will be used to fund working capital requirements pending
publication of our maiden resource at Mtonya. Importantly, the loan
highlights Estes continuing support in providing a flexible funding
option that avoids dilution at a pivotal time, as we look to
complete our maiden resource at Mtonya and enter the next phase of
our evolution.
Other projects
The Company continues to establish itself as a uranium-focused
exploration company and we view Mtonya as our priority project. In
addition to Mtonya, the Company has to date conducted early-stage
exploration work in Tanzania at its other projects which include
Ruvumu (Foxy and Gundua), Ruhuhu (Pedro) and Lukimwa.
As previously reported the initial exploration results on these
projects has been encouraging and the Company sought to farm these
properties out in order to focus on ISR uranium potential to
maximize the company's strengths and expertise. All preliminary
discussions with third parties have so far failed to lead to any
farm-in agreements.
In light of the recent changes in Tanzanian licensing fees, a
critical review of the Company's assets has led to a conclusion
that our resources are best invested in advancing the Mtonya
project and adjacent properties. Consequently, the Company has
elected to exit the Kapinga Joint Venture and return all of its
non-core tenements to its joint-venture partners. The Kapinga Joint
Venture included the Ruvuma projects (Foxy, Gundua). All other
assets in Tanzania are also being reviewed.
The 100%-owned Lukimwa Project is an integral part of our
exploration strategy at Mtonya and it likely represents the SW
extension of the Mtonya deposit. The Company intends to drill-test
Lukimwa in the very near future.
An impairment charge of US$87,551 has been recorded in the
financial statements in respect of the Kapinga joint venture
termination decision.
Financial results
I am reporting a pre-tax loss for the six months ended 31
December 2012 of US$467,000 (6 months ended 31 December 2011
US$1,854,000; Year ended 30 June 2012: US$2,110,000). The loss for
the six month ended includes an impairment charge of US$87,551 and
a share based payment charge of $Nil (6 months ended 31 December
2011 US$1,721,000; Year ended 30 June 2012: US$1,721,000).
The recently completed Loan facility with Estes Limited, the
Company's cornerstone shareholder, provides the Company with access
to sufficient cash to be able to meet its operational and minimum
licence commitments over the next twelve months.
The announcement of the maiden resource will be an important
step as the Company clarifies its Mtonya project development
strategy. The Directors remain confident that Mtonya's potential
will enable the Company to secure finance to develop Mtonya as this
development strategy is implemented.
Outlook
In conclusion, the past year has seen Uranium Resources continue
its emergence as a leading uranium exploration company in Africa.
The Company has developed a credible exploration model and has
successfully demonstrated the deep mineralisation potential at
Mtonya, which is expected to be amenable to in-situ recovery. By
any measure, this is a new and exciting discovery and it signals
the immense magnitude of uranium potential in Tanzanian sedimentary
basins. Aiming to increase the resource at Mtonya and carry out
pump test places the Company on a clear development path.
With the Mtonya outlook, clear strategy, proven potential for
the entire basin and well-developed and effective exploration
methodology, along with Estes Limited, our highly supportive
cornerstone investor, I believe we have all the foundations in
place to deliver growth and create significant shareholder value
for the future.
Alex Gostevskikh
27 March 2013
Competent Persons declaration
The information in this statement that relates to Exploration
Results, Mineral Resources or Ore Reserves is based on information
reviewed by Alex Gostevskikh, Managing Director of Uranium
Resources plc, who is a Member of the Mining and Metallurgical
Society of America. Mr. Gostevskikh has sufficient experience which
is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves' and as a qualified person under the AIM
Note for Mining, Oil and Gas Companies. Mr. Gostevskikh consents to
the inclusion in the report of the matters based on his information
in the form and context in which it appears.
**ENDS**
For further information please visit www.uraniumresources.co.uk
or contact:
Alex Gostevskikh Uranium Resources plc Tel: +255 752 968
062
Ross Warner Uranium Resources plc Tel: +44 7760 487769
Samantha Harrison RFC Ambrian Ltd (Nomad) Tel: +44 20 3440
6800
Jeremy King/ Optiva Securities Ltd Tel: +44 20 3137
Jason Robertson 1904
Hugo de Salis St Brides Media & Finance Tel: +44 20 7236
Ltd 1177
Felicity Edwards St Brides Media & Finance Tel: +44 20 7236
Ltd 1177
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2012
Half-year Half-year Year ended
ended ended
31 Dec 2012 31 Dec 2011 30 June 2012
(Unaudited) (Unaudited) (Audited)
US$'000s US$'000s US$'000s
Notes
Share based payment charge - (1,721) (1,721)
Impairment charge (88) - -
Other administrative expenses (410) (389) (788)
Total administrative expenses
and group operating loss (498) (2,110) (2,509)
Interest receivable 31 256 399
Loss before taxation (467) (1,854) (2,110)
Taxation - - -
-------------- -------------- ---------------
Loss for the period (467) (1,854) (2,110)
Other comprehensive income
Exchange differences on
translating foreign operations 24 (152) (231)
-------------- -------------- ---------------
Total comprehensive loss
attributable to the equity
holders of the parent (443) (2,006) (2,341)
Loss per share (cents)
Basic and diluted 3 (0.06) (0.33) (0.34)
============== ============== ===============
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2012
31 Dec 2012 31 Dec 2011 30 June 2012
(Unaudited) (Unaudited) (Audited)
Note US$'000s US$'000s US$'000s
Assets
Non-current assets
Exploration & evaluation
assets 4 17,194 10,594 14,226
------------- ------------- -------------
17,194 10,594 14,226
Current assets
Other receivables 7 20 53
Cash and cash equivalents 234 1,350 4,288
------------- ------------- -------------
241 1,370 4,341
------------- ------------- -------------
Total Assets 17,435 11,964 18,567
------------- ------------- -------------
Liabilities
Current liabilities
Trade and other payables (176) (157) (865)
------------- ------------- -------------
Total Liabilities (176) (157) (865)
------------- ------------- -------------
Net Assets 17,259 11,807 17,702
============= ============= =============
Equity
Share capital 1,206 946 1,206
Share premium 21,713 15,743 21,713
Foreign exchange reserve (311) (256) (335)
Retained losses (5,349) (4,626) (4,882)
Total Equity 17,259 11,807 17,702
============= ============= =============
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2012
Share Share Foreign Retained Total shareholders
capital premium currency losses equity
translation
reserve
US$'000s US$'000s US$'000s US$'000s US$'000s
As at 1 July 2011 946 15,743 (104) (4,493) 12,092
Total comprehensive
income - - (152) (1,854) (2,006)
Transactions with
owners:
Share based payments - - - 1,721 1,721
Total transaction
with owners - - - 1,721 1,721
--------- --------- ------------- --------- -------------------
Balance at 31 December
2011 946 15,743 (256) (4,626) 11,807
--------- --------- ------------- --------- -------------------
Total comprehensive
income - - (79) (256) (335)
Transactions with
owners:
Issued share capital 260 5,983 - - 6,243
Cost of share issue - (13) - - (13)
--------- --------- ------------- --------- -------------------
Total transaction
with owners 260 5,970 - - 6,230
--------- --------- ------------- --------- -------------------
Balance at 30 June
2012 1,206 21,713 (335) (4,882) 17,702
--------- --------- ------------- --------- -------------------
Total comprehensive
income - - 24 (467) (443)
Balance at 31 December
2012 1,206 21,713 (311) (5,349) 17,259
--------- --------- ------------- --------- -------------------
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2012
Half-year Half-year Year ended
ended ended
31 Dec 2012 31 Dec 2011 30 June 2012
(Unaudited) (Unaudited) (Audited)
US$'000s US$'000s US$'000s
Cash flows from operating activities
Loss for the period (467) (1,854) (2,110)
Adjustments for non-cash items:
Interest income (1) (2) (3)
Impairment 88 - -
Share-based payments charge - 1,721 1,721
Foreign exchange (30) - (396)
Decrease/ (Increase) in receivables 46 2 (33)
Increase /(Decrease)in payables 23 (7) (37)
------------ ------------ -------------
Net cash used in operating activities (341) (140) (858)
------------ ------------ -------------
Investing activities
Funds used for exploration
and evaluation (3,744) (2,890) (5,619)
Interest received 1 2 3
------------ ------------ -------------
Net cash used in investing activities (3,743) (2,888) (5,616)
------------ ------------ -------------
Financing activities
Proceeds from share application/issue
of shares - - 6,243
Cost of share issues - - (13)
------------
Net cash from financing - - 6,230
------------ ------------ -------------
Decrease in cash and cash equivalents (4,084) (3,028) (244)
Foreign exchange movements
on cash 30 241 395
Cash and cash equivalents at
beginning of the period 4,288 4,137 4,137
------------ ------------ -------------
Cash and cash equivalents at
the end of the period 234 1,350 4,288
============ ============ =============
NOTES TO THE UNAUDITED HALF-YEARLY FINANCIAL REPORT FOR THE SIX
MONTHS ENDED 31 DECEMBER 2012
1 General information
Uranium Resources Plc ('the Company') is domiciled in England.
The condensed consolidated half-year accounts of the Company for
the six months ended 31 December 2012 comprise the Company and its
subsidiaries (together referred to as 'the Group').
The condensed half-year accounts for the period 1 July 2012 to
31 December 2012 are unaudited. In the opinion of the Directors the
condensed half-year accounts for the period presents fairly the
financial position, and results from operations and cash flows for
the period in conformity with the generally accepted accounting
principles consistently applied. The condensed half-year accounts
incorporate unaudited comparative figures for the interim period 1
July 2011 to 31 December 2011 and the audited financial year to 30
June 2012.
The financial information contained in this half-year report
does not constitute statutory accounts as defined by section 434 of
the Companies Act 2006.
The comparatives for the full year ended 30 June 2012 are not
the Company's full statutory accounts for that year. A copy of the
statutory accounts for that year has been delivered to the
Registrar of Companies. The auditors' report on those accounts was
unqualified and did not contain a statement under section 498 (2) -
(3) of the Companies Act 2006.
2 Accounting policies
The condensed half-year accounts have been prepared using
policies based on International Financial Reporting Standards (IFRS
and IFRIC interpretations) issued by the International Accounting
Standards Board ("IASB") as adopted for use in the EU. The
condensed half-year accounts have been prepared using the
accounting policies which are expected to be applied in the Group's
statutory financial statements for the year ending 30 June
2013.
Basis of preparation and going concern
The operations of the Group are currently being financed from
funds which the Company raised from private and public placings of
its shares. The Group has not yet earned revenue as it is still in
the exploration phase of its business. The Group is reliant on the
continuing support from its existing and future shareholders.
The recently completed Loan facility with Estes Limited, the
Company's cornerstone shareholder, provides the Company with access
to sufficient cash to be able to meet its operational and minimum
licence commitments over the next twelve months. The financial
statements have, therefore, been prepared on the going concern
basis.
Standards, amendments and interpretations effective in 2012:
The following new standards and amendments to standards are
mandatory for the first time for the Group for the financial year
beginning 1 July 2012. Except as noted, the implementation of these
standards did not have a material effect on the Group:
Standard Impact on initial application Effective date
--------- --------------- ---------------------------------- -----------------
Deferred tax: recovery of underlying
IAS 12 (Amendment) assets 1 January 2012(*)
-------------------- -------------------------------------- -------------------
Standards, amendments and interpretations that are not yet
effective and have not been early adopted:
Standard Effective date
----------------- ---------------------------------- ------------------
IFRS 10 Consolidated financial statements 1 January 2013
IFRS 11 Joint arrangements 1 January 2013
Disclosure of interest in other
IFRS 12 entities 1 January 2013
IFRS 13 Fair value measurement 1 January 2013
IAS 19 Employee benefits 1 January 2013(*1)
(Amendment 2011)
IAS 27 Separate financial statements 1 January 2013
(Amendment 2011)
Investments in associates and 1 January 2013
IAS 28 joint ventures
(Amendment 2011)
Disclosures - offsetting financial 1 January 2013
IFRS 7 assets and financial liabilities
(Amendment 2011)
Offsetting financial assets and 1 January 2014
IAS 32 financial liabilities
(Amendment 2011)
IFRS 9 Financial instruments 1 January 2015(*1)
----------------- ---------------------------------- ------------------
(*1) Not yet endorsed by the EU
The Group is evaluating the impact of the above pronouncements
and will consider the potential impact of IFRS 11. No other
pronouncement is expected to have a material impact on the Group's
earnings or shareholders' funds.
3 Loss per share
The basic loss per share has been calculated using the loss
attributable to equity shareholders for the financial period of
US$467,000 (six months ended 31 December 2011: US$1,854,000; year
ended 30 June 2012: US$2,110,000) and the weighted average number
of ordinary shares in issue of 745,493,750 (31 December 2011:
581,743,750; 30 June 2012: 623,265,651). A separate diluted loss
per share has not been calculated because any potentially dilutive
shares would decrease the basic loss per share, thus being
anti-dilutive.
4 Exploration and evaluation assets
Unaudited Unaudited Audited
31 Dec 2012 31 Dec 2011 30 June
US$'000s US$'000s 2012
US$'000s
Exploration and evaluation
Cost and net book value
At beginning of period 14,226 7,704 7,704
Additions 3,056 2,890 6,522
Impairment (88) - -
Total net book value 17,194 10,594 14,226
---------------------------- ------------- ------------- ----------
In accordance with the Groups accounting policy, the Group's
exploration and evaluation assets are reviewed for impairment when
there have been circumstances suggesting that there has been the
possibility of an impairment. After a strategic review the board
have elected to allow a number of unprospective licences to lapse
and to revert to the government. Accordingly the directors have
reviewed the impairments required on each of the exploration and
evaluation projects and the carried value for each of the condemned
projects has been impaired in full in the current period. The total
impairment charge for the period is $87,551 (31 December 2011 and
30 June 2012: $Nil). The remaining carried value relates entirely
to the Company's flagship project Mtonya.
5 Share options
Unaudited Unaudited Audited
31 Dec 2012 31 Dec 2011 30 June
US$'000s US$'000s 2012
US$'000s
Equity-settled share based
payment charge - 1,721 1,721
---------------------------- -------------- ------------- ----------
Options outstanding at 31 December 2011, 30 June 2012 and 31
December 2012 were:
Date of grant Number of options Exercise price Exercisable between
Up to 30 November
30 November 2011 24,000,000 2.5p 2016
Up to 30 November
30 November 2011 26,000,000 5.0p 2016
Up to 30 November
30 November 2011 10,000,000 10.0p 2016
Total at period
end 60,000,000
==================
6 Subsequent events
On 25 March 2013 the Company entered into a US$1 million loan
facility agreement with its majority shareholder Estes Limited
('Estes'). The Loan, which is unsecured, available for a period of
18 months and bears interest at LIBOR, will be used to fund working
capital requirements pending publication of our maiden resource at
Mtonya.
Other than the events disclosed above there have been no
significant events after the period end.
7 Related party transactions
During the period there were no related party transactions to
disclose. The only transactions with the Directors relate to their
remuneration and interests in shares and share options.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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