TIDMURA
RNS Number : 9745Y
Uranium Resources PLC
09 March 2017
Uranium Resources Plc / Market: AIM / Epic: URA / Sector:
Exploration
Uranium Resources plc ("Uranium Resources" or "the Company")
Half-Year Results
Uranium Resources, the AIM listed uranium exploration company
operating in Tanzania, announces its results for the six month
period ended 31 December 2016.
Managing Director's Report
The six month period ended 31 December 2016 saw the Company
continue its discussions with parties interested in partnering
Uranium Resources to develop its Mtonya Project ("Mtonya") in the
United Republic of Tanzania. Discussions are ongoing with one
potential partner, however, there can be no certainty that a
transaction to progress activities at Mtonya will be concluded.
During the period, the uranium market conditions remained
challenging with prices at all-time lows. However, there was a
brief rally in the uranium price in January 2017 following the
decision by major supplier Kazakhstan to reduce output although the
market fundamentals have not changed significantly. The Board
believe this pricing environment will continue while there are
tentative signs that conditions may improve this year.
During the reporting period, the main Mtonya exploration licence
reached the end of its exploration term, at which point it should
be converted to a mining licence. Therefore the Company has applied
for an extension to the exploration period. The Board continues to
believe that the extension to the exploration period will be
granted, however this cannot be guaranteed. The Company will make
further announcements regarding the status of the Mtonya licence as
appropriate.
Some delays with the granting of the extension may have been
caused by the continued realignments in the government following
the Tanzanian General Election in the autumn of 2015. The Company
hopes that the ongoing changes in government herald further
improvements in the Tanzanian natural resources regulatory
framework that shall position the country well in the overdue
resurgence of the mining sector.
The directors continue to assess a variety of strategic options
to enhance value for shareholders, in the meantime the Company
remains grateful for the ongoing support of its major investor
Estes Limited which continues to provide and extend debt facilities
for Uranium Resources.
Financial results
I am reporting a pre-tax loss for the six months ended 31
December 2016 of US$289,000 (6 months ended 31 December 2015:
US$266,000; Year ended 30 June 2016: US$15,447,000 mainly due to
the impairment of the Exploration and evaluation assets). The
Company's board continues to evaluate additional financing
options.
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 (ISR).
Estes Limited remains supportive of the Mtonya project and the
Company, which was once again demonstrated as they agreed to
provide a loan extension and a further loan facility of US$50,000
following the period end in January 2017.
The Company has and will continue to investigate opportunities
for engaging a strategic investor to advance Mtonya as well as
other growth opportunities.
Alex Gostevskikh
**S**
For further information please visit www.uraniumresources.co.uk
or contact:
Alex Gostevskikh Uranium Resources Tel: +255 752
plc 968 062
Matthew Johnson Northland Capital Tel: +44 203
/ David Hignell Partners Ltd 861 6625
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31 DECEMBER 2016
Half-year Half-year Year
ended ended
31 Dec 31 Dec ended
2016 2015
(Unaudited) (Unaudited) 30 June
2016
US$'000s US$'000s (Audited)
US$'000s
Note
Administrative expenses (141) (120) (218)
Impairment of exploration
assets - - (14,901)
Total administrative
expenses and group operating
loss (141) (120) (15,119)
Interest payable and
foreign exchange losses (148) (146) (328)
Loss before taxation (289) (266) (15,447)
Taxation 3 - - -
-------------------- -------------------- ------------
Loss for the period (289) (266) (15,447)
Other comprehensive
income
Exchange differences
on translating foreign
operations 127 72 220
-------------------- -------------------- ------------
Total comprehensive
loss attributable to
the equity holders of
the parent (162) (194) (15,227)
Loss per share (cents)
Basic and diluted 4 (0.04) (0.04) (203.89)
==================== ==================== ============
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016
31 Dec 31 Dec 30 June
2016 2015 2016
(Unaudited) (Audited)
(Unaudited)
Notes US$'000s US$'000s US$'000s
Assets
Non-current assets
Exploration & evaluation
assets 5 2,786 17,684 2,800
------------- ------------- -----------
2,786 17,684 2,800
Current assets
Other receivables - 1 -
Cash and cash equivalents 12 33 22
------------- ------------- -----------
12 34 22
------------- ------------- -----------
Total Assets 2,798 17,718 2,822
------------- ------------- -----------
Liabilities
Non-current liabilities
Borrowings - - -
------------- ------------- -----------
Current liabilities
Borrowings 6 (1,820) (1,627) (1,715)
Trade and other payables (381) (299) (348)
(2,201) (1,926) (2,063)
------------- ------------- -----------
Total Liabilities (2,201) (1,926) (2,063)
------------- ------------- -----------
Net Assets 597 15,792 759
============= ============= ===========
Equity
Share capital 1,225 1,225 1,225
Share premium 21,776 21,776 21,776
Foreign exchange reserve 21 (254) (106)
Retained losses (22,425) (6,955) (22,136)
Total Equity 597 15,792 759
============= ============= ===========
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 DECEMBER 2016
Share Share Foreign Retained Total
capital premium exchange losses shareholders'
reserve equity
US$'000s US$'000s US$'000s US$'000s US$'000s
As at 1 July
2015 1,225 21,776 (326) (6,689) 15,986
Total comprehensive
income - - 72 (266) (194)
Balance at 31
December 2015 1,225 21,776 (254) (6,955) 15,792
----------- --------- ---------- ----------- ---------------
Total comprehensive
income - - 148 (15,181) (15,033)
Balance at 30
June
2016 1,225 21,776 (106) (22,136) 759
----------- --------- ---------- ----------- ---------------
Total comprehensive
income - - 127 (289) (162)
Balance at 31
December 2016 1,225 21,776 21 (22,425) 597
----------- --------- ---------- ----------- ---------------
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 31 DECEMBER 2016
Half-year Half-year Year ended
ended ended
31 Dec 31 Dec 30 June
2016 2015 2016
(Unaudited) (Unaudited) (Audited)
US$'000s US$'000s US$'000s
Cash flows from operating
activities
Loss for the period (289) (266) (15,447)
Impairment of exploration
and evaluation assets - - 14,901
Interest payable 6 5 11
Foreign exchange loss/
(gain) 142 77 319
Decrease in receivables - 9 10
Increase in payables 28 33 5
-------------------- ------------ ------------------
Net cash used in operating
activities (113) (142) (201)
-------------------- ------------ ------------------
Investing activities
Funds used for exploration
and evaluation - (54) (87)
Net cash used in investing
activities - (54) (87)
-------------------- ------------ ------------------
Financing activities
Borrowings 98 206 288
Net cash from financing 98 206 288
-------------------- ------------ ------------------
(Decrease)/increase in
cash and cash equivalents (15) 10 -
Foreign exchange movements
on cash 5 2 1
Cash and cash equivalents
at beginning of the period 22 21 21
-------------------- ------------ ------------------
Cash and cash equivalents
at the end of the period 12 33 22
==================== ============ ==================
NOTES TO THE UNAUDITED HALF-YEARLY FINANCIAL REPORT FOR THE SIX
MONTHSED 31 DECEMBER 2016
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 2016 comprise the Company and its
subsidiaries (together referred to as 'the Group').
The condensed half-year accounts for the period 1 July 2016 to
31 December 2016 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 2015 to 31 December 2015 and the audited financial year to 30
June 2016.
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 2016 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
2017.
Basis of preparation and going concern
At 31 December 2016 the Company had drawn down US$1,787,687
against the available facilities of US$1,800,000 and had incurred
accrued interest of US$32,179 in total. The facilities, which are
unsecured and bear interest at LIBOR, are for working capital.
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, 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 12 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 12 months from the date of this report, including meeting
future capital and working capital requirements and also settling
the Estes loan facilities, which are 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 2016:
The accounting policies adopted in the preparation of these
financial statements are consistent with those followed in the
preparation of the prior year's financial statements except for the
adoption of new standards and interpretations effective as of 1
July 2016. The Company has not early adopted any other standard,
interpretation or amendment that has been issued but is not yet
effective:
-- IFRS 9: Financial instruments (Effective 1 January 2018)
-- IFRS 15 - Revenue from Contracts with Customers (Effective 1 January 2018)
-- IFRS 16 - Leases (Effective 1 January 2019)
No any pronouncements are expected to have a material impact on
the Group's earnings or shareholders' funds.
3 Taxation
The Group's Tanzanian tax compliance are subject to tax audit by
the Tanzanian Revenue Authority, which is empowered by law to
impose severe fines, penalties and interest charges for late
payments in case of non-compliance.
Taxation system in Tanzania can be subject to different
interpretations but management believes that it has adequately
provided for the tax liabilities based on its interpretation of the
tax legislation.
As at 31 December 2016 no provision has been made (31 December
2015 and 30 June 2016 - $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$289,000 (six months ended 31 December 2015: US$266,000; year
ended 30 June 2016: US$15,447,000) and the weighted average number
of ordinary shares in issue of 757,632,495 (31 December 2015:
757,632,495; 30 June 2016: 757,632,495). A separate diluted loss
per share has not been calculated because any potentially dilutive
shares would decrease the basic loss per share, thus being
anti-dilutive.
5 Exploration and evaluation assets
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2016 2015 2016
US$'000s US$'000s US$'000s
Exploration and evaluation
Cost and net book value
At beginning of period 2,800 17,651 17,651
Additions 28 68 142
Foreign exchange (42) (35) (92)
Impairment - - (14,901)
---------------------------- ---------- ---------- ----------
Total net book value 2,786 17,684 2,800
---------------------------- ---------- ---------- ----------
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. 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 2016. The total
impairment charge for the current half year period is $Nil (six
months ended 31 December 2015: Nil and year ended 30 June 2016:
US$14,901,000). The remaining carried value relates entirely to the
Company's flagship project Mtonya.
6 Borrowings
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2016 2015 2016
US$'000s US$'000s US$'000s
Brought forward 1,715 1,416 1,416
Borrowings in period 98 206 288
Interest accrued in
period 7 5 11
---------- ---------- ----------
Borrowings carried
forward 1,820 1,627 1,715
========== ========== ==========
On 15 March 2013, the Company entered into a US$1 million loan
facility agreement with its major shareholder and strategic
investor Estes Limited. The Loan facility, which is unsecured, has
been fully utilised. The Loan bears interest at LIBOR. As of the
date of signing of the Financial Statements the loan agreement was
extended until 15 March 2017.
On 18 March 2014, the Company entered into a US$300,000 loan
facility agreement with its major shareholder and strategic
investor Estes Limited. The Loan facility is unsecured. As of 31
December 2016 the Company had drawn down $290,000 against the
available facility. The Loan bears interest at LIBOR. As of the
date of signing of the Financial Statements the loan agreement was
extended until 15 March 2017.
On 19 February 2015, the Company entered into a US$200,000 loan
facility agreement with its major shareholder and strategic
investor Estes Limited. Subsequently the total principle amount was
increased to US$500,000. The Loan facility is unsecured. As of 31
December 2016 the Company had drawn down US$497,687 against the
available facility. The Loan bears interest at LIBOR. As of the
date of signing of the Financial Statements the loan agreement was
extended until 15 March 2017.
7 Related party transactions
During the period there were no related party transactions to
disclose other than mentioned above in Note 6. The only
transactions with the Directors relate to their remuneration and
interests in shares and share options.
8. Events after the period end date
There were no significant events after the period end date.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SSSSAUFWSEDD
(END) Dow Jones Newswires
March 09, 2017 05:00 ET (10:00 GMT)
Uranium (LSE:URA)
Historical Stock Chart
From Apr 2024 to May 2024
Uranium (LSE:URA)
Historical Stock Chart
From May 2023 to May 2024