18 March 2024
Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or the "Company") is
pleased to announce that it has released its Interim Financial
Report for the Half-Year ended 31 December 2023.
A full version of the Interim
Financial report can also be viewed here:
http://www.rns-pdf.londonstockexchange.com/rns/1466H_1-2024-3-17.pdf
The Interim Financial Report is also
available on the Company's website at: www.auraenergy.com.au
Directors' Report
Your directors present their report
on the consolidated entity consisting of Aura Energy Limited
('Aura' or the 'Company') and the entities it controlled (the
'Group') at the end of, or during, the half-year ended 31 December
2023 (the 'Period').
Directors
The following persons were Directors
of the Company during the whole of the financial period and up to
the date of this report, except as otherwise indicated:
Mr Philip Mitchell, Non-Executive
Chair
Mr Bryan Dixon, Non-Executive
Director
Mr Warren Mundine, Non-Executive
Director
Mr Patrick Mutz, Non-Executive
Director
Mr Andrew Grove, Managing Director
& CEO (appointed 30 January 2024)
Mr David Woodall, Managing Director
& CEO (resigned 30 January 2024)
Principal activities
The principal activities of the
consolidated entity during the course of the Period were the
development, exploration and evaluation of uranium in Mauritania
and vanadium and other battery metals in Sweden.
There was no significant change in
the nature of these activities during the Period.
Operations Review
Aura is an ASX and AIM-listed
minerals exploration and development company, focused on the
development of the Tiris Uranium Project in Mauritania and the
Häggån Vanadium Polymetallic Project in Sweden. During the period,
Aura has achieved several milestones and made significant progress
with both projects.
Tiris Uranium Project
The Front-End Engineering Design
('FEED') Study for the Tiris Project ('Tiris') progressed
significantly during the Period, with the results published on 28
February 2024. The FEED Study confirms Tiris as high-value low-risk
commercial scaled low-cost near-term uranium mine. Tiris has the
key advantage that the beneficiation of the shallow free digging
ore delivers very high grade (~1,900ppm
U3O8), material to the leaching circuit
without the need for crushing or grinding.
Operationally, an extensional
drilling program on the Tiris East tenements was mobilised during
the Period and commenced in early January 2024. This program is
targeting an Exploration Target in the range of 8-32 Mlbs
U3O8 aiming to increase the total Tiris
resources towards 100Mlbs U3O8. While
uncertainty over the conversion of the exploration program remains,
if it provides a low-cost uplift to the resource inventory, it will
introduce an opportunity to increase production rates and/or extend
the mine life at Tiris.
During the Period, the Company
completed a detailed regional evaluation program based on
historical drilling and radiometric data that underpins the Tiris
Uranium Project. After this analysis, Aura applied for an
additional ~13,000 km2 of exploration tenements in the
broader Tiris Uranium Province in November 2023, securing a
significant strategic position in a prospective but underexplored
uranium province. Subject to successful granting of these
applications, Aura will work progressively to confirm and test
exploration targets within these tenements throughout the course of
2024 and 2025.
Moving into 2024, Aura will continue
the transition towards becoming a uranium producer. Aura continues
to believe that demand for uranium will grow significantly over the
next two decades. The increasing global demand for electricity and
the global shift towards low carbon energy sources will require a
significant increase in nuclear power generation and uranium
demand. We have already seen the spot U3O8
price increase from US$65/lb in 2023 to the current US$95/lb.
Offtake discussions have continued to advance in the backdrop of
the strongly appreciating uranium spot market. Funding discussions
will commence shortly and the Company will progress towards a Final
Investment Decision ('FID') in 2024.
Häggån Vanadium Project
In September 2023, the Company
announced the completion of the Scoping Study for the Häggån
Vanadium Project in Sweden. Häggån hosts a world-class polymetallic
ore body with a global scale vanadium resource. The Base Case
Scenario outlined in the Scoping Study demonstrated outstanding
economics with an NPV range from US$380-US$1,231 million, depending
on final plant construction and forward price assumptions. This
Base Case included only <3% of Häggån's known 2.0Bn tonne
Mineral Resource Estimate and assumed that uranium would not be
extracted from the project.
A summary of the Scoping Study
demonstrated:
·
Post-tax NPV ranging from US$380 - US$1,231
Million.
·
A post-tax IRR of 26% - 47% and a payback period
of 1.5 to 2 years.
·
Initial capital cost of US$593 Million to generate
an operating cash flow of between US$140-$270 Million per
annum.
·
Häggån currently has defined a global Mineral
Resource Estimate of ~2 Billion tonnes at an average grade of 0.3%
V2O5, containing 13.3 Billion lbs
V2O5 at a 0.2% V2O5
cutoff.
·
The Häggån Mineral Resource also contains
significant uranium totalling 800 Million pounds of
U3O8.
·
The Base Case scenario proposes mining the
high-grade zone at ~5.9Mtpa producing approximately:
o 10,400 tpa high-quality vanadium flake.
o ~217,000 tpa V2O5 sulphate of potash
(SOP) by-product for sale as fertiliser.
o 3,000 tpa mixed sulphide product.
The outcomes of the Scoping Study
were immediately used as input for the application process for a
25-year Exploitation permit application. This process has included
multiple consultation meetings that have been conducted with local
communities in Sweden during the Period.
Aura also continues to support the
Swedish Government's strategy to create energy independence and the
methodical approach it is taking to potentially rescinding the
legislated ban on uranium mining. The change in language used in
the energy target policy from "100% renewable" to "100%
fossil-free" electricity by the Swedish parliament, is tangible
evidence of the shift in sentiment towards the use of nuclear power
due to its stability, reliability and lack of greenhouse emissions.
The Swedish Government has recently initiated an inquiry to
consider lifting the current ban on uranium mining. If the sale of
uranium was allowed, it would add additional upside to the economic
outcomes for Häggån.
Corporate
During the Period, the Company
announced the appointment of Ross Kennedy as Company Secretary
replacing Mr Phillip Hains. Mr Kennedy is an experienced Company
Secretary with more than 30 years of experience.
The Company's registered office
changed to Level 30, 35 Collins Street, Melbourne, Victoria,
Australia.
A total of 6,660,150 AEEO Options
were exercised during the Period.
Financial Review
The Group's consolidated net loss
for the half year ended 31 December 2023 after providing for income
tax amounted to $2,987,251 (2022: $3,316,842).
The Group held net assets of
$37,826,938 as at 31 December 2023 (30 June 2023: $39,802,295),
including cash and cash equivalents of $5,866,138 (30 June 2023:
$11,238,716).
Refer to the preceding "Operations
Review" section for further details on the operations of the
company.
Events occurring after the balance sheet
date
On 25 January 2024, the Company
announced that it had entered into Option Funding Agreements with
certain investors who have agreed to prepay the Company
approximately $4.3 million, equal to the exercise monies for all
remaining unexercised listed options expiring 30 June 2024. The
funds will be repaid to the investors upon receipt of option
exercise monies as and when the current Option Holders exercise
their options.
As part of the Options Funding
Agreements, the Company entered into an agreement with PAC Partners
Securities Pty Limited (the 'Underwriter') to underwrite 20 million
unexercised listed options ("Underwritten Options") whereby the
Underwriter will receive shares equal to the number of shares to be
issued on exercise of 100% of the Underwritten Options that are not
exercised by the Option Holders by the Option Expiry Date, in lieu
of cash. The Options are listed and have an expiry date of 30 June
2024, an exercise price of $0.052 each, and on exercise convert
into ordinary fully paid shares in the Company.
On 30 January 2024, the Company
announced the resignation of David Woodall and the appointment of
Andrew Grove as Managing Director and CEO.
On 28 February 2024, the Company
announced the FEED Study results for the Tiris Uranium Project,
noting the following key points:
·
FEED study confirms excellent economics and
capital efficiency to develop Tiris into a globally significant
near-term uranium operation:
o
NPV8 of US$366 million
o IRR of
34% post tax and 2.5 year payback
o
Uranium price of US$80/lb U3O8
·
Average base case production of 1.9Mlbspa
U3O8 over a 17-year mine life
·
Shallow free dig open pit mining and beneficiation
delivers a low cost, high-grade leach feed averaging 1,997ppm
U3O8 for first five years and 1,743ppm
U3O8 life of mine
·
Low AISC of US$34.5/lb U3O8
demonstrates strong margins
·
Efficient capital cost of US$230 million
supporting a long mine life
·
Final Investment Decision expected late in 2024
for an 18-month construction timeline to first
production
·
Processing facility designed for future expansion
beyond 2Mlbspa
·
Extensional drill program underway targeting
further resource growth
On 15 March 2024, the Company's
securities on ASX went into a trading halt, pending an announcement
about the outcome of a Private Placement ("Placement"). Joint Lead
Managers for the Placement have been formally engaged. As at the
date of this report, the outcome of the Placement is not
certain.
No other matter or circumstance has
arisen since 31 December 2023 that has significantly affected, or
may significantly affect the Group's operations, the results of
those operations, or the Group's state of affairs in future
financial years.
Proceedings on behalf of the Group
No person has applied to the Court
under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in any
proceedings to which the Company is a party, for the purpose of
taking responsibility on behalf of the Company for all or part of
those proceedings.
No proceedings have been brought or
intervened in on behalf of the Company with leave of the Court
under section 237 of the Corporations Act 2001.
Dividends
No dividends have been paid or
declared by the Company for the current financial period. No
dividends were paid for the previous financial period.
Auditor's independence declaration
A copy of the auditor's independence
declaration as required under section 307C of the Corporations Act 2001 is set out on
page 9 of the Interim Financial Report..
This report is made in accordance
with a resolution of directors.
Andrew Grove
Managing Director and CEO
15 March 2024
Condensed Consolidated Statement of Profit or Loss & Other
Comprehensive Income
For
the half year ended 31 December 2023
|
|
Note
|
31 Dec 2023
|
31 Dec 2022
|
|
|
|
$
|
$
|
|
Continuing operations
|
|
|
|
|
Other losses
|
|
(11,229)
|
(129,426)
|
|
Employee benefits
|
|
(670,885)
|
(398,296)
|
|
General & Administrative
expenses
|
6
|
(1,395,567)
|
(1,151,054)
|
|
Share based payment
expenses
|
|
(523,173)
|
(1,221,745)
|
|
Operating loss
|
|
(2,600,854)
|
(2,900,521)
|
|
|
|
|
|
|
Finance income
|
|
154,512
|
24,112
|
|
Finance expense
|
8(b)
|
(8,066)
|
-
|
|
Finance income - net
|
|
146,446
|
24,112
|
|
Loss
before income tax
|
|
(2,454,408)
|
(2,876,409)
|
|
Income tax expense
|
|
-
|
-
|
|
Loss
from continuing operations
|
|
(2,454,408)
|
(2,876,409)
|
|
Loss from disposal group
|
|
(532,843)
|
(440,436)
|
|
Loss
for the Period
|
|
(2,987,251)
|
(3,316,845)
|
|
|
|
|
|
|
Loss
is attributable to:
|
|
|
|
|
Owners of Aura Energy
Limited
|
|
(2,979,549)
|
(3,304,204)
|
|
Non-controlling interests
|
|
(7,702)
|
(12,638)
|
|
|
|
(2,987,251)
|
(3,316,842)
|
|
Other comprehensive income
|
|
|
|
|
Items that may be reclassified to profit or
loss:
|
|
|
|
|
Exchange differences on translation
of foreign operations
|
|
142,393
|
9,696
|
|
Total comprehensive loss for the
Period
|
|
142,393
|
9,696
|
|
Total Comprehensive Loss after income tax for the year
attributable to equity holders of the Company
|
|
(2,844,858)
|
(3,307,146)
|
|
|
|
|
|
|
Total comprehensive income for the Period is attributable
to:
|
|
|
|
|
Owners of Aura Energy
Limited
|
|
(2,860,466)
|
(3,294,789)
|
|
Non-controlling interests
|
|
15,608
|
(12,357)
|
|
|
|
(2,844,858)
|
(3,307,146)
|
|
Basic and diluted loss per share attributable to equity
holders of the Company:
|
|
Cents
|
Cents
|
|
From continuing operations
attributable to the ordinary
equity holders of the company
|
|
(0.43)
|
(0.56)
|
|
From continuing operations and
disposal group attributable to the ordinary equity holders of the
company
|
|
(0.52)
|
(0.64)
|
The above Condensed Consolidated Statement of Profit or Loss
and Other Comprehensive Income should be read in conjunction with
the accompanying notes.
Condensed Consolidated Statement of Financial
Position
As
at 31 December 2023
|
|
Note
|
31 Dec 2023
|
30 Jun 2023
|
|
|
|
$
|
$
|
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
7
|
5,862,213
|
11,238,716
|
|
Other receivables
|
|
178,215
|
57,531
|
|
Other current assets
|
|
94,880
|
35,404
|
|
Assets classified as disposal
group
|
|
2,612,405
|
2,735,650
|
|
Total current assets
|
|
8,747,713
|
14,067,301
|
|
Non-current assets
|
|
|
|
|
Security deposits
|
|
53,295
|
50,380
|
|
Plant and equipment
|
|
9,524
|
5,158
|
|
Right of use assets
|
8(a)
|
267,140
|
-
|
|
Exploration and evaluation
|
9
|
32,827,319
|
27,248,300
|
|
Total non-current assets
|
|
33,157,278
|
27,303,838
|
|
Total assets
|
|
41,904,991
|
41,371,139
|
|
Liabilities
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
10
|
3,564,118
|
1,310,087
|
|
Employee benefits
|
|
107,215
|
87,110
|
|
Other current liabilities
|
|
3,067
|
667
|
|
Lease liabilities
|
8(b)
|
82,674
|
-
|
|
Liabilities directly associated with
assets classified as disposal group
|
112,041
|
170,980
|
|
Total current liabilities
|
|
3,869,115
|
1,568,844
|
|
Non-current liabilities
|
|
|
|
|
Employee benefits
|
|
1,847
|
-
|
|
Lease liabilities
|
8(b)
|
207,091
|
-
|
|
Total non-current liabilities
|
|
208,938
|
-
|
|
Total liabilities
|
|
4,078,053
|
1,568,844
|
|
Net
assets
|
|
37,826,938
|
39,802,295
|
|
Equity
|
|
|
|
|
Share capital
|
11
|
82,278,531
|
81,832,301
|
|
Other equity
|
|
314,346
|
314,346
|
|
Other reserves
|
12
|
5,006,460
|
4,464,106
|
|
Accumulated losses
|
|
(49,712,736)
|
(46,733,187)
|
|
Capital and reserves attributable to owners of
parent
|
|
37,886,601
|
39,877,566
|
|
Non-controlling interests
|
|
(59,663)
|
(75,271)
|
|
Total equity
|
|
37,826,938
|
39,802,295
|
The above Condensed Consolidated Statement of Financial
Position should be read in conjunction with the accompanying
notes.