TIDMURA
RNS Number : 5187S
Uranium Resources PLC
08 November 2013
Uranium Resources plc / Market: AIM / Epic: URA / Sector:
Exploration
8 November 2013
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 2013 and gives notice of its Annual General Meeting ('AGM') to
be held at the offices of Sprecher Grier Halberstam LLP, 5th Floor,
One America Square, Crosswall, London EC3N 2SG on 5th December 2013
at 11.00 am.
The Company also confirms that its annual report and financial
statements for the year ended 30 June 2013 will be posted to
shareholders on the 11 November 2013, together with the Notice of
AGM and will be available on the Company's website at the same
time.
Highlights
-- Progress being made on all fronts as Uranium Resources
establish itself as a successful uranium exploration vehicle
focussed on projects which are amendable to in-situ recovery
-- Maiden uranium resource for its flagship Mtonya project 60 km
south world-class Mkuju River deposit being developed by Uranium
One
-- In-fill and step-out drilling programme to test the deeper
redox tiers, extend the current resource along strike, and develop
district targets along the 36 km long Mtonya Redox Corridor
-- Mineralogy studies unequivocally supports the uranium roll-front exploration model for Mtonya
-- Mtonya mineralisation is thought to be amenable to the least
expensive methods of in situ recovery - extraction method used to
produce the majority of the world's mined uranium
-- Development of regional targets and prospect on-going
including Ruhuhu Basin - mineralisation similar to Paladin's
Kayelekera deposit
-- Positive uranium pricing dynamic going forward
-- Cornerstone investor Estes Limited remains a strong supporter of the project
Uranium Resources Managing Director, Alex Gostevskikh, said, "We
continue to make progress on defining what we believe to be a
world-class roll front uranium basin. With a maiden resource based
on a small part of the licence area and proof-of-concept mineralogy
studies, we believe we have a regional mineralised roll-front
feature that can be developed through in-situ recovery. We are
assessing all options on how to advance our flagship project
including corporate transactions and as a result remain excited
about the development of our predictive discovery."
MANAGING DIRECTOR'S STATEMENT
This has been a period of great progress and challenge for
Uranium Resources. In May 2013, the Company announced a maiden
uranium resource for its flagship Mtonya project ('Mtonya' or 'the
Project'). The project achieved its major milestone in one of the
most challenging times for the uranium industry as uncertainty
continues to enwrap some of the developed nations' nuclear power
industry. Nonetheless, the Board continues to be enthusiastic about
the potential of Mtonya because of the strong nuclear fuel market
fundamentals, continued growth in Asian power generation, and
finite supplies of secondary uranium and economically viable
resources.
Further to developing a maiden resource at Mtonya, the Company
entered into a loan agreement with Estes Limited ('Estes'), its
cornerstone investor and strong supporter of the project. This
agreement provides the Company with a US$1 million bridge funding
as we explore the opportunities to finance an expansion drilling
campaign.
In line with our strategy to build a leading uranium exploration
and development company focussed on projects which are amendable to
in-situ recovery ('ISR'), we continue to identify and assess new
resource opportunities which complement our investment
criteria.
Mtonya
The Company's 100%-owned flagship Mtonya project is located
approximately 60km south of the world-class Mkuju River deposit,
which is owned by ARMZ and operated by Uranium One, and has an
indicated and measured resource of 93.3 Mlb U3O8 grading 257 ppm
U308.
The Company's exploration model is based on the
well-substantiated premise that the neighbouring Mkuju River
project is a small segment of a regional mineralised roll-front
feature, most of which has no surface exposure. We believe Mkuju
River is part of a regional roll-front that was uplifted along a
regional normal fault and eroded, forming narrow, thin, and
disconnected pods and lenses of uranium ore that are dominated by
secondary uranium minerals such as metaautunite and
metauranocircite. The near-surface uranium mineralisation at Mtonya
remains a valid exploration target, but its significance is viewed
as less of a priority in comparison to the deep mineralisation that
may yield a substantially larger world-class deposit, which is
amenable to ISR.
The completion of the 26,485 m resource-definition drilling
programme in 2012 allowed the Company to delineate a maiden
CIM-compliant Inferred Resource of 2.014 Mlb U3O8 grading 255 ppm
U3O8. On a 250x50 m grid the resource drilling remains fairly
coarse and significant upside potential remains untested along
strike of the roll-front feature and at depth. Volumetrically, only
1/6 of prospective lithologies have been systematically drilled at
Mtonya.
The Company has completed an in-house study of mineralogy
(optical and scanning electron microscope studies of thin-polished
sections with mineralised material), which demonstrated that the
uranium mineralisation below the water table comprises uraninite
and coffinite. This conclusion unequivocally supports the uranium
roll-front exploration model for Mtonya. The study has also shown
that the host rock contains less than 5% of carbonate minerals,
signifying that the Mtonya mineralisation may be amenable to the
least expensive methods of ISR.
The Company is now designing an extensive in-fill and step-out
drilling programme, which will test the deeper redox tiers and
attempt to extend the known uranium mineralisation along strike.
The size of the drilling programme to be undertaken will be
announced in due course. The planned programme includes both
diamond and reverse-circulation (RC) drilling and pump and
metallurgical testwork on the Mtonya sandstone.
Lukimwa
The Lukimwa prospect is located approximately 28km southwest of
Mtonya. This prospect forms a part of the 36-kilometre long Mtonya
redox corridor and is thought to be the southwestern extension of
the Mtonya roll-front. The exploration programme for Mtonya
includes a limited number of prospecting drillholes at Lukimwa.
Ruhuhu Basin
The Company is planning a limited reconnaissance and
target-generation programme on its licences in the Ruhuhu basin,
southwestern Tanzania, 150 km northwest of the Mtonya deposit. The
Company's current land holdings in the Ruhuhu span approximately
27,920 hectares and are situated within the section of the basin
which is viewed to have the best potential.
The Karoo sediments of the Ruhuhu Basin comprise organic-rich
post-glacial lacustrine shales and coal seams within arkosic
sandstone. This combination of lithologies and structural settings
is thought to be favourable for hosting mineralisation similar to
Paladin's Kayelekera deposit, albeit with ISR amenability.
Discovered in the early 1980s, the Kayelekera deposit is located in
northern Malawi and occurs in the Permian Karoo arkose sandstone of
the North Rukuru basin. The original measured and indicated
resource at Kayelekera was stated at 30 million pounds U3O8 grading
0.089% U3O8 (Paladin Energy Ltd., 2007). The data compiled by the
Company for the Ruhuhu basin indicate persuasive similarities
between the architecture and lithological composition of the North
Rukuru and Ruhuhu basins and suggest that the Company's methodology
may prove successful for discovering uranium mineralisation
amenable to ISR in the Ruhuhu basin. The Company is completing an
exhaustive data compilation and plans a limited reconnaissance
programme for the focus area.
Other regional licenced areas
The Company is establishing itself as a uranium-focused
exploration company and we view Mtonya as our priority project. We
are also confident that new exploration opportunities will be
generated on our other licensed areas.
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 $1,074,000 for the year ended 30 June 2013 (2012:
loss $2,110,000) including an impairment charge of $327,000 (2012:
$Nil) and $Nil (2012: $1,721,000) in respect of share based
payments.
During the latter part of the financial year the Company
implemented a strategy to conserve its cash by reducing the Group's
overhead, whilst part of the effect of this reduction can be seen
in the 2013 results, the majority of the benefit will be reported
in 2014.
Funding and going concern
In March 2013 the Company announced that it had entered into a
US$1 million loan facility agreement ('the Loan') with its major
shareholder and strategic investor Estes Limited. 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.
At the 30 June 2013 the Company had drawn down $550,000 against
this facility. Estes continues to show its support in providing
this flexible funding option to the Company. The Group plans to
continue its work programme in the next twelve months and beyond as
it develops and evaluates its Uranium project pipeline. The undrawn
funds available from the loan facility, in conjunction with the
Group's current cash resources do not provide the Group with
sufficient available resources to meet all of its commitments for
the next twelve months, the Group will therefore need to raise
additional funds.
The Directors remain confident that Mtonya's potential, together
with the Group's historic track record of raising additional funds
and the interest being shown from potential partners, will enable
the Group to fully finance its obligations beyond a period of at
least twelve months from the date of this report, including meeting
future capital and working capital requirements and also settling
the Estes loan facility, which is due for repayment in full on or
before 15 September 2014.
Outlook
In the past year, Uranium Resources advanced its predictive
discovery at Mtonya to a resource stage. The Company's ability to
fund further exploration has been affected by adverse uranium
market conditions but the Board is of a view that these
difficulties shall be overcome in 2014. In order to finance the
2014 programme, the Company is reviewing a number of strategic
alternatives including, but not limited to, joint ventures,
strategic partnerships, and mergers or other corporate transactions
to enhance shareholder value.
Major shareholder Estes continues to be supportive of the
Company and, at this stage, has indicated it intends to invest
alongside a suitable strategic investor. The Company will provide
further updates in due course.
The Company has a made great progress with its Mtonya project -
advancing it from a grassroots exploration opportunity to a
resource stage. This was made possible by applying solid geoscience
and by the professionalism of our personnel. The Board believes
that these factors will continue to play a crucial role in
unlocking Mtonya's potential and return value to our
shareholders.
Alex Gostevskikh
Managing Director
For further information please visit www.uraniumresources.co.uk
or contact:
Alex Gostevskikh Uranium Resources plc Tel: +44 (0) 7997 713377
Ross Warner Uranium Resources plc Tel: +44 (0) 7760 487769
Samantha Harrison RFC Ambrian Limited Tel: +44 (0) 20 3440 6800
Hugo de Salis St Brides Media & Finance Tel: +44 (0) 20 7236 1177
Ltd
Felicity Edwards St Brides Media & Finance Tel: +44 (0) 20 7236 1177
Ltd
About Uranium Resources
Uranium Resources plc is an AIM listed exploration and
development company. It is the Company's strategy to advance its
existing assets and strengthen its portfolio via opportunistic
acquisition. Uranium Resources is advancing its uranium assets in
the highly prospective Luwegu Basin, Southern Tanzania where it is
exploring for roll-front deposits amenable to in-situ recovery.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2013
2013 2012
US$'000 US$'000
Notes
Administrative expenses (687) (788)
Impairment of exploration assets (327) -
Share-based payments 4 - (1,721)
---------- ----------
Group operating loss (1,014) (2,509)
Interest payable and foreign exchange (61) -
losses
Interest receivable and foreign exchange
gains 1 399
---------- ----------
Loss before taxation (1,074) (2,110)
Taxation - -
---------- ----------
Loss for the year (1,074) (2,110)
Other comprehensive income
Exchange differences on translating foreign operations 41 (231)
---------- ----------
Total comprehensive loss attributable
to the equity holders of the parent (1,033) (2,341)
========== ==========
Loss per share (cents)
Basic and Diluted 3 (0.14) (0.34)
The results shown above related entirely to continuing
operations and are attributable to equity shareholders of the
Company.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2013
2013 2012
Notes US$'000 US$'000
Assets
Non-current assets
Exploration and evaluation assets 4 17,217 14,226
--------- ---------
Current assets
Receivables 2 53
Cash and cash equivalents 96 4,288
--------- ---------
98 4,341
--------- ---------
Total Assets 17,315 18,567
--------- ---------
Liabilities
Non-current liabilities
Borrowings 5 (550) -
--------- ---------
Current liabilities
Trade and other payables (96) (865)
Total Liabilities (646) (865)
--------- ---------
Net Assets 16,669 17,702
========= =========
Equity
Capital and reserves attributable to
equity holders
Share capital 1,206 1,206
Share premium 21,713 21,713
Foreign exchange reserve (294) (335)
Retained losses (5,956) (4,882)
Total Equity 16,669 17,702
========= =========
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2013
2013 2012
Notes US$'000 US$'000
Assets
Non-current assets
Investments in subsidiaries 17,512 13,812
--------- ---------
Current assets
Receivables 2 4
Cash and cash equivalents 70 3,977
--------- ---------
72 3,981
--------- ---------
Total Assets 17,584 17,793
--------- ---------
Liabilities
Non-current liabilities
Borrowings 5 (550) -
--------- ---------
Current liabilities
Trade and other payables (83) (64)
Total Liabilities (633) (64)
--------- ---------
Net Assets 16,951 17,729
========= =========
Equity
Capital and reserves attributable to
equity holders
Share capital 1,206 1,206
Share premium 21,713 21,713
Foreign exchange reserve (947) (505)
Retained losses (5,021) (4,685)
Total Equity 16,951 17,729
========= =========
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2013
Consolidated statement of changes in equity
Foreign
currency
Share Share translation Retained Total
capital premium reserve losses equity
US$'000 US$'000 US$'000 US$'000 US$'000
At 1 July 2011 946 15,743 (104) (4,493) 12,092
Total comprehensive
income - - (231) (2,110) (2,341)
Transactions with owners:
Share based payments - - - 1,721 1,721
Issue of share capital 260 5,983 - - 6,243
Cost of share issue - (13) - - (13)
--------- --------- ------------- --------- --------
Total transactions with
owners 260 5,970 - 1,721 7,951
--------- --------- ------------- --------- --------
At 30 June 2012 1,206 21,713 (335) (4,882) 17,702
Total comprehensive
income - - 41 (1,074) (1,033)
At 30 June 2013 1,206 21,713 (294) (5,956) 16,669
========= ========= ============= ========= ========
Company statement of changes in equity
Foreign
currency
Share Share translation Retained Total
capital premium reserve losses equity
US$'000 US$'000 US$'000 US$'000 US$'000
At 1 July 2011 946 15,743 (102) (4,470) 12,117
Total comprehensive
income - - (403) (1,936) (2,339)
Transactions with owners:
Share based payments - - - 1,721 1,721
Issue of share capital 260 5,983 - - 6,243
Cost of share issue - (13) - - (13)
--------- --------- ------------- --------- --------
Total transactions with
owners 260 5,970 - 1,721 7,951
--------- --------- ------------- --------- --------
At 30 June 2012 1,206 21,713 (505) (4,685) 17,729
Total comprehensive
income - - (442) (336) (778)
At 30 June 2013 1,206 21,713 (947) (5,021) 16,951
========= ========= ============= ========= ========
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2013
2013 2012
US$'000 US$'000
Cash flows from operating activities
Loss for the year (1,074) (2,110)
Share-based payments charge - 1,721
Impairment of exploration and evaluation 327 -
assets
Interest income (1) (3)
Foreign exchange loss/(gain) 61 (396)
Decrease/(increase) in receivables 51 (33)
Decrease in payables (24) (37)
-------- --------
Net cash used in operating activities (660) (858)
-------- --------
Investing activities
Funds used for exploration and evaluation (3,969) (5,619)
Interest received 1 3
-------- --------
Net cash used in investing activities (3,968) (5,616)
-------- --------
Financing activities
Borrowings 550 -
Cash proceeds from issue of shares - 6,243
Share issue costs paid - (13)
-------- --------
Net cash inflow from financing 550 6,230
-------- --------
Decrease in cash and cash equivalents (4,078) (244)
Foreign exchange movements on cash (114) 395
Cash and cash equivalents at beginning of the
year 4,288 4,137
-------- --------
Cash and cash equivalents at the end of the year 96 4,288
======== ========
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2013
2013 2012
US$'000 US$'000
Cash flows from operating
activities
Loss for the year (336) (1,936)
Share-based payments charge - 1,721
Interest income (1) (3)
Foreign exchange gain (290) (396)
Decrease in receivables 2 13
Increase/(decrease) in
payables 19 (3)
Net cash used in operating activities (606) (604)
-------- --------
Investing activities
Investments and loans granted to subsidiaries (3,738) (6,156)
Interest received 1 3
-------- --------
Net cash used in investing
activities (3,737) (6,153)
-------- --------
Financing activities
Borrowings 550 -
Cash proceeds from issue
of shares - 6,243
Share issue costs paid - (13)
-------- --------
Net cash inflow from financing 550 6,230
-------- --------
Decrease in cash and cash equivalents (3,793) (527)
Foreign exchange retranslation (114) 396
Cash and cash equivalents at beginning of the
year 3,977 4,108
-------- --------
Cash and cash equivalents at the end of the
year 70 3,977
======== ========
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
1.1 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 2013 and
30 June 2012 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 2012 accounts have
been delivered to the Registrar of Companies. The 30 June 2013
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.
1.2 Going concern
In March 2013 the company announced that it had entered into a
US$1 million loan facility agreement ('the Loan') with its major
shareholder and strategic 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.
At the 30 June 2013 the Company had drawn down $550,000 against
this facility. Estes continues to show its support in providing
this flexible funding option to the Company. The Group plans to
continue its work programme in the next twelve months and beyond as
it develops and evaluates its Uranium project pipeline. The undrawn
funds available from the loan facility, in conjunction with the
Group's current cash resources do not provide the Group with
sufficient available resources to meet all of its commitments for
the next twelve months, the Group will therefore need to raise
additional funds.
The Directors remain confident that Mtonya's potential, together
with the Group's historic track record of raising additional funds
and the interest being shown from potential partners, will enable
the Group to fully finance its obligations beyond a period of at
least twelve months from the date of this report, including meeting
future capital and working capital requirements and also settling
the Estes loan facility, which is due for repayment in full on or
before 15 September 2014.
2. Segmental reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision--maker.
The chief operating decision--maker, who is responsible for
allocating resources and assessing performance of the operating
segment and that make strategic decisions, has been identified as
the Board of Directors.
The Group had no operating revenue during the period.
The Group operates in one segment, the exploration and
evaluation of uranium. The Parent Company operates a head office
based in the United Kingdom which incurred certain administration
and corporate costs. The Group's operations span two countries,
Tanzania and the United Kingdom.
Segment results Segment results
2013 2012
US$'000 US$'000
Uranium (Tanzania) (80) (153)
Administration and Corporate
(UK) (607) (2,356)
Uranium (Tanzania) Impairment (327) -
-------- --------
Total operating loss of all
segments (1,014) (2,509)
-------- --------
Finance expense (61) -
Finance income 1 399
-------- --------
Loss before and after tax (1,074) (2,110)
======== ========
The Group's share based payment charge is included within the
United Kingdom ('UK') segment result. The Group's depreciation,
amortisation and capital expenditure is incurred entirely within
the Tanzanian segment.
Segment assets and liabilities Non-Current Assets Non-Current Liabilities
2013 2012 2013 2012
US$'000 US$'000 US$'000 US$'000
Uranium (Tanzania) 17,217 14,226 - -
Administration and Corporate - - 550 -
(UK)
---------- --------- ------------ ------------
Total of all segments 17,217 14,226 550 -
========== ========= ============ ============
Total Assets Total Liabilities
Segment assets and liabilities 2013 2012 2013 2012
US$'000 US$'000 US$'000 US$'000
Uranium (Tanzania) 17,243 14,586 13 68
Administration and Corporate
(UK) 72 3,981 633 797
---------- --------- ------------ ------------
Total of all segments 17,315 18,567 646 865
========== ========= ============ ============
3. Loss per share
The basic loss per ordinary share is 0.14 cents (2012: 0.34
cents) and has been calculated using the loss for the financial
year of US$1,074,000 (2012: loss US$ 2,110,000) and the weighted
average number of ordinary shares in issue of 745,493,750 (2012:
623,265,651).
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 diluted shares are discussed in note 15.
4. Exploration and evaluation assets
Group Exploration
and evaluation
expenditure
Cost and net book value US$'000
At 1 July 2011 7,704
Additions 6,522
At 30 June 2012 14,226
Additions 3,318
Impairment (327)
---------------
At 30 June 2013 17,217
===============
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
nor has the determination process been completed.
In accordance with the Group's 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 $327,323 (31 December 2011 and
30 June 2012: $Nil). The remaining carried value relates entirely
to the Company's flagship project Mtonya.
The outcome of ongoing exploration and evaluation, and therefore
whether the carrying value of E&E assets will ultimately be
recovered, is inherently uncertain. The Directors have assessed the
value of the remaining uranium exploration and evaluation
expenditure , and in their opinion, no further impairment is
necessary. This assessment includes a review of the expiry dates of
licenses and the likelihood of their renewal.
5. Borrowings - non current
2013 2012
Group Company Group Company
US$'000 US$'000 US$'000 US$'000
Borrowings in period 550 550 - -
Borrowings carried forward 550 550 - -
======== ======== ======== ========
6. Events after the year end date
There were no significant events after the year end.
7. Related party transactions
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 of the full financial statements.
Estes Limited, the Company's ultimate controlling party,
provided a loan facility during the period. As at 30 June 2013 the
outstanding balance and the maximum outstanding during the year was
$550,000 (2012: $Nil). Further details of the loan facility are
included in note 5.
8. Ultimate controlling party
As at 30 June 2013 the Company's ultimate controlling party is
Estes Limited who own 56.0% of the
Company's issued share capital. Details of transactions with
Estes are disclosed above.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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