TIDMURA
RNS Number : 5808D
Uranium Resources PLC
31 March 2014
Uranium Resources Plc / Market: AIM / Epic: URA / Sector:
Exploration
31 March 2014
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 2013.
Highlights
-- Continued development of exploration programme targeting
expansion of maiden resource at Mtonya
-- Mtonya deposit expected to be amenable to in-situ recovery,
the most cost-effective and environmentally benign method of
uranium extraction
-- Company remains optimistic about Mtonya world-class potential
-- Other prospective areas in Tanzanian Karoo basins under evaluation
Post Period End Highlights
-- Entered into a US$300,000 loan facility agreement with our
strategic cornerstone investor Estes Limited
-- 2014 exploration programme anticipated to launch in May 2014
Managing Director's Report
The announcement of Mtonya's maiden uranium resource in May 2013
signified a major milestone in the development of this potentially
world-class asset, which remains open along strike and at depth.
However, Uranium Resources continued to operate in a challenging
uranium market which adversely affected the rate of exploration
progress at Mtonya and its satellite targets. The Board remains
enthusiastic about the potential of Mtonya and the strong nuclear
fuel market fundamentals; continued growth in Asian power
generation; and finite supplies of secondary uranium and existing
limits on economically viable uranium 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 which
provided the Company with US$1,000,000 of bridge funding, which was
fully utilised at the period end. In March 2014 Estes provided an
additional loan facility of US$300,000 as we pursue a range of
opportunities to progress the expansion drilling campaign at
Mtonya.
Additionally, in line with our strategy to build a leading
uranium exploration and development company focussed on projects
which are amendable to in-situ recovery, we continue to identify
and assess new resource opportunities which meet our investment
criteria.
Exploration Update
Mtonya
I am pleased to report that the Company continues to work on
developing the 2014 exploration programme at Mtonya and its
satellite targets.
Following the establishment of Mtonya's maiden resource, we
continued to analyse the Mtonya data to ensure the success of the
forthcoming drill programme. The previous drilling 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 completion of the 26,485m 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 forthcoming programme currently envisages focusing on
step-out drilling at the Mtonya deposit to maximise the expansion
of the resource.
Other projects
The Company continues to be a uranium-focused exploration
company and we view Mtonya as our priority project. In addition,
the Company is evaluating uranium opportunities in the other Karoo
basins of Tanzania, e.g. the Ruhuhu Basin.
Financial report and results
I am reporting a pre-tax loss for the six months ended 31
December 2013 of US$170,000 (6 months ended 31 December 2012:
US$467,000; year ended 30 June 2013: US$1,074,000). The loss for
the six month ended includes an impairment charge of US$Nil (6
months ended 31 December 2012: US$87,551; year ended 30 June 2013:
$327,000).
The loss for the half year period consists of administrative
costs of US$274,000 (31 December 2012: US$ 410,000), a fall
principally caused by the overhead reduction policy implemented
during the course of 2013. The loss was also affected by a foreign
exchange gain of US$107,000 (31 December 2012: US$31,000) resulting
from the strengthening of the British Pound against the US$.
Funding and going concern
Estes continues to show its support to the Company in providing
loan facilities of up to US$1,300,000 to fund the Company's working
capital requirements in the short term.
Further details on the Company's funding and going concern are
included in note 2 to these interim financial statements.
Outlook
Uranium Resources has developed a credible exploration model
which led to the discovery of the Mtonya uranium deposit that is
thought to be amenable to in-situ recovery. The Company is looking
forward to achieving a substantial increase in the resource and
demonstrating its suitability for in-situ recovery.
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 in
the future.
Alex Gostevskikh
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
Matthew Johnson Northland Capital Partners Tel: +44 207 382
/ Gavin Burnell Ltd 1100
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 2013
Half-year Half-year Year
ended ended
31 Dec 2013 31 Dec 2012 ended
(Unaudited) (Unaudited) 30 June
2013
US$'000s US$'000s (Audited)
US$'000s
Note
Impairment charge - (88) (327)
Other administrative expenses (274) (410) (687)
Total administrative expenses
and group operating loss (274) (498) (1,014)
Interest payable and foreign
exchange losses (3) - (61)
Interest receivable and foreign
exchange gain 107 31 1
Loss before taxation (170) (467) (1,074)
Taxation 3 - - -
-------------- -------------- ------------
Loss for the period (170) (467) (1,074)
Other comprehensive income
Exchange differences on translating
foreign operations (65) 24 41
-------------- -------------- ------------
Total comprehensive loss attributable
to the equity holders of the
parent (235) (443) (1,033)
Loss per share (cents)
Basic and diluted 4 (0.02) (0.06) (0.14)
============== ============== ============
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2013
31 Dec 2013 31 Dec 2012 30 June 2013
(Unaudited) (Unaudited) (Audited)
Notes US$'000s US$'000s US$'000s
Assets
Non-current assets
Exploration & evaluation
assets 5 17,469 17,194 17,217
------------- ------------- -------------
17,469 17,194 17,217
Current assets
Other receivables 2 7 2
Cash and cash equivalents 151 234 96
------------- ------------- -------------
153 241 98
------------- ------------- -------------
Total Assets 17,622 17,435 17,315
------------- ------------- -------------
Liabilities
Non-current liabilities
Borrowings 6 - - (550)
------------- ------------- -------------
Current liabilities
Trade and other payables (185) (176) (96)
Borrowings 6 (1,003) - -
------------- ------------- -------------
Total Liabilities (1,188) (176) (646)
------------- ------------- -------------
Net Assets 16,434 17,259 16,669
============= ============= =============
Equity
Share capital 1,206 1,206 1,206
Share premium 21,713 21,713 21,713
Foreign exchange reserve (359) (311) (294)
Retained losses (6,126) (5,349) (5,956)
Total Equity 16,434 17,259 16,669
============= ============= =============
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
Share Share Foreign Retained Total shareholders'
capital premium exchange losses equity
reserve
US$'000s US$'000s US$'000s US$'000s US$'000s
As at 1 July 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
--------- --------- ---------- --------- --------------------
Total comprehensive
income - - 17 (607) (590)
Balance at 30 June
2013 1,206 21,713 (294) (5,956) 16,669
--------- --------- ---------- --------- --------------------
Total comprehensive
income - - (65) (170) (235)
Balance at 31 December
2013 1,206 21,713 (359) (6,126) 16,434
--------- --------- ---------- --------- --------------------
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
Half-year Half-year Year ended
ended ended
31 Dec 2013 31 Dec 2012 30 June 2013
(Unaudited) (Unaudited) (Audited)
US$'000s US$'000s US$'000s
Cash flows from operating activities
Loss for the period (170) (467) (1,074)
Interest paid/(income) 3 (1) (1)
Impairment - 88 327
Foreign exchange (gain)/loss (107) (30) 61
Decrease in receivables 1 46 51
Increase /(decrease) in payables 83 23 (24)
------------ ------------ -------------
Net cash used in operating activities (190) (341) (660)
------------ ------------ -------------
Investing activities
Funds used for exploration
and evaluation (210) (3,744) (3,969)
Interest received - 1 1
------------ ------------ -------------
Net cash used in investing activities (210) (3,743) (3,968)
------------ ------------ -------------
Financing activities
Borrowings 450 - 550
Net cash from financing 450 - 550
------------ ------------ -------------
Increase/(decrease) in cash
and cash equivalents 50 (4,084) (4,078)
Foreign exchange movements
on cash 5 30 (114)
Cash and cash equivalents at
beginning of the period 96 4,288 4,288
------------ ------------ -------------
Cash and cash equivalents at
the end of the period 151 234 96
============ ============ =============
NOTES TO THE UNAUDITED HALF-YEARLY FINANCIAL REPORT FOR THE SIX
MONTHS ENDED 31 DECEMBER 2013
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 2013 comprise the Company and its
subsidiaries (together referred to as 'the Group').
The condensed half-year accounts for the period 1 July 2013 to
31 December 2013 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 2012 to 31 December 2012 and the audited financial year to 30
June 2013.
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 2013 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
2014.
Basis of preparation and going concern
In March 2014 the company announced that it had increased its
loan facilities with Estes by US$300,000 to a total facility of
US$1,300,000. The facilities, which are unsecured and bear interest
at LIBOR, are for working capital. At 31 December 2013 the Company
had drawn down $1,000,000 against the available facility and had
incurred accrued interest of US$3,000.
Estes continues to show its support in providing this flexible
funding option to the Company. As stated above the Group plans to
continue its work programme in May 2014, however 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 within the next
12 months, accordingly these condensed half-year accounts are
prepared on a going concern basis.
Standards, amendments and interpretations effective in 2013:
The following new standards and amendments to standards are
mandatory for the first time for the Group for the financial year
beginning 1 July 2013. Except as noted, the implementation of these
standards did not have a material effect on the Group:
Standard Impact on initial application 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 2012)
IAS 27 Separate financial statements 1 January 2013
(Amendment 2012)
Investments in associates and 1 January 2013
IAS 28 joint ventures
(Amendment 2012)
Disclosures - offsetting financial 1 January 2013
IFRS 7 assets and financial liabilities
(Amendment 2012)
------------------- ------------------------------------ --------------------
Standards, amendments and interpretations that are not yet
effective and have not been early adopted:
Standard Effective date
----------------- ------------------------------- ------------------
Offsetting financial assets and 1 January 2014
IAS 32 financial liabilities
(Amendment 2012)
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 Taxation
The Tanzanian Revenue Authority is undertaking a routine audit
of the Group's Tanzanian tax compliance. As at 31 December 2013 no
provision has been made (31 December 2012 and 30 June 2013 -
$Nil).
4 Loss per share
The basic loss per share has been calculated using the loss
attributable to equity shareholders for the financial period of
US$170,000 (six months ended 31 December 2012: US$467,000; year
ended 30 June 2013: US$1,074,000) and the weighted average number
of ordinary shares in issue of 745,493,750 (31 December 2012:
745,493,750; 30 June 2013:745,493,750). A separate diluted loss per
share has not been calculated because any potentially dilutive
shares would decrease the basic loss per share, thus being
anti-dilutive.
5 Exploration and evaluation assets
Unaudited Unaudited Audited
31 Dec 2013 31 Dec 2012 30 June
US$'000s US$'000s 2013
US$'000s
Exploration and evaluation
Cost and net book value
At beginning of period 17,217 14,226 14,226
Additions 210 3,056 3,318
Foreign exchange 42 - -
Impairment - (88) (327)
Total net book value 17,469 17,194 17,217
---------------------------- ------------- ------------- ----------
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 impairment. After a strategic review in the year
ended 30 June 2013 the board elected to allow a number of
unprospective licences to lapse and to revert to the government.
Accordingly the directors reviewed the impairments required on each
of the exploration and evaluation projects and the carried value
for each of the condemned projects were impaired in full in the
year ended 30 June 2013. The total impairment charge for the
current half year period is $Nil (six months ended 31 December
2012: $87,551 and year ended 30 June 2013: $327,323). The remaining
carried value relates entirely to the Company's flagship project
Mtonya.
6 Borrowings
Unaudited Unaudited Audited
31 Dec 2013 31 Dec 2012 30 June 2013
US$'000s US$'000s US$'000s
Brought forward 550 - -
Borrowings in period 450 - 550
Interest accrued in period 3 - -
------------- ------------- --------------
Borrowings carried forward 1,003 - 550
============= ============= ==============
On 25 March 2013 the Company entered into a US$1 million loan
facility agreement with its major shareholder and strategic
investor Estes Limited. The Loan, which is unsecured, is available
for a period of 18 months and bears interest at LIBOR. Note 7
describes the increase in loan facilities made available since the
period end.
7 Subsequent events
On 21 March 2014 the Company entered into a further US$300,000
loan facility agreement ('the Loan') with its major shareholder and
strategic investor Estes Limited. The Loan, which is unsecured, is
available for the period to 1 January 2015 and bears interest at
LIBOR, will be used to fund working capital requirements.
8 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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