News
RNS Announcements
Interim Results
30 March 2007
Uranium Resources plc, the AIM listed uranium exploration and development company focused in Southern Africa, is pleased to announce its results for the six month period ended 31 December 2006. The Directors are pleased to report on the progress and the achievements made by your Company since the last report.
The focus has primarily been on expanding and developing the Company's portfolio of uranium licences in the highly prospective Karoo Basin in Southern Tanzania, where it currently has a land package in excess of 7,600 sq km. Recent results have been highly encouraging and indicate the economic potential of the region.
In summary, your Company achieved the following:
Tanzanian Exploration:
- Increased the size and strike length of the 'Henri Anomaly' - a further 6 ground radiometric anomalies of >200cps defined within 250m of the Henri discovery trench
- Including Henri, a total of 8 anomalies have now been identified along a 6km trend at the Mtonya Project and numerous drill targets have now been generated
- More high grade uranium results have been received from systematic channel sampling of trenches at Mtonya
- Best trench results from channel samples include:
- 22,950 ppm (2.29%) U or 27,081 ppm (2.71%) U3O8
- 20,820 ppm (2.08%) U or 24,567 ppm (2.46%) U3O8
Tanzanian Land Acquisition:
- Acquired a 42.5% interest in tenements in the prospective Karoo Basin sediments in Tanzania
- Tenements cover 3,774 sq km, increasing the Company's total tenement holding in Tanzania to 7,640 sq km
- New tenements build Uranium Resources' position as one of the largest exploration land holders in the Karoo Basin in southern Tanzania
Corporate:
- Completed a fund raising of £2 million in cash via a share issue in January 2007, giving the Company a cash position of £2.4 million
- James Pratt - a geologist with over 18 years' experience in the mining and exploration industry, principally in Australia and Africa appointed a non-executive director. James is Managing Director of Leopard Minerals plc, an unlisted public company. James has been involved in the management of successful publicly listed uranium exploration companies since 2004
- Leon Pretorius and Peter Harold resigned from the Board
- Uranium Resources continues to explore a stock exchange listing on the ASX as well as potential mergers with existing listed uranium companies
The 2007 Tanzanian Exploration Season:
The Company is currently preparing for the Tanzanian field season in May/June 2007.
Exploration will include:
- Further trenching;
- ground radiometric surveys;
- airborne radiometric surveys;
- soil sampling; and
- drilling
The Company plans to commence drilling in June 2007 with the aim of completing approximately 10,000m this season. The drilling programme is being funded by its farm-in partners Western Metals Limited.
Finally, being at the exploration stage we are not producing revenue and as such I am reporting a pre-tax loss of £433,438, including a loss attributable to share based payments of £258,000.
Hugh Warner
Director
30 March 2007
| CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 31 DECEMBER 2006 |
||
| Unaudited Six months ended 31 December 2006 Notes £ |
Unaudited Six months ended 31 December 2005 £ |
Audited Eighteen months ended 30 June 2006 £ |
| Group turnover - | - | - |
| Cost of sales - | - | - |
| Gross profit - | - | - |
| Administrative expenses before amortisation of goodwill and charge for share based payments (169,618) Amortisation of goodwill 4 (17,500) Share based payments 7 (258,000) |
(167,367) (10,208) - |
(421,437) (27,708) (66,667) |
| Total administrative expenses (445,118) | (177,575) | (515,812) |
| Group operating loss (445,118) | (177,575) | (515,812) |
| Interest receivable 11,680 | 13,710 | 35,302 |
| Loss on ordinary activities before taxation (433,438) |
(163,865) |
(480,510) |
| Taxation 2 - | - | - |
| Loss on ordinary activities after taxation (433,438) |
(163,865) |
(480,510) |
| Loss per ordinary share (pence) Basic 3 (0.21p) Diluted 3 (0.21p) |
(0.079p) (0.079p) |
(0.24p) (0.24p) |
There were no recognised gains or losses during the above periods except as stated in the profit and loss account and accordingly no statement of total recognised gains and losses has been prepared.
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2006
| Unaudited | Unaudited | Audited | |
| 31 | December 2006 31 | December 2005 30 | June 2006 |
| Notes Fixed assets |
£ | £ | £ |
| Intangible assets 4 Current assets |
400,087 |
339,791 |
363,470 |
| Debtors | 15,802 | 1 | 2,182 |
| Cash at bank and in hand |
484,448 |
800,232 |
618,354 |
Creditors: amounts falling due |
500,250 | 800,233 | 620,536 |
| within one year |
(54,013) |
- |
(12,489) |
| Net current assets Total assets less current |
446,237 |
800,233 |
608,047 |
| liabilities Provision for liabilities and |
846,324 |
1,140,024 |
971,517 |
| charges 5 |
(24,000) |
- |
- |
| Net assets Capital and reserves |
822,324 |
1,140,024 |
971,517 |
| Called up share capital 6 | 211,000 | 211,000 | 211,000 |
| Share premium account 8 | 1,174,360 | 1,239,000 | 1,174,360 |
| Own shares reserve 8 | 50,245 | - | - |
| Share based payments reserve 8 | 234,000 | - | - |
| Profit and loss account 8 |
(847,281) |
(309,976) |
(413,843) |
| Shareholders' funds 9 | 822,324 | 1,140,024 | 971,517 |
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006
| Unaudited | Unaudited | Audited | |
| Six months ended | Six months ended | Eighteen | |
| 31 December 2006 | 31 December 2005 | months ended 30 June 2006 |
|
| Notes Net cash outflow from operating |
£ |
£ |
£ |
| activities 10 Returns on investments and servicing of finance |
(179,284) |
(162,775) |
(411,130) |
| Investment income |
11,680 |
13,710 |
35,302 |
Capital expenditure |
(167,604) |
(149,065) |
(375,828) |
| Investing in exploration 4 Acquisitions and disposals |
(16,547) |
- |
(41,178) |
| Acquisition of subsidiary Net cash outflow before |
- |
(50,000) |
(50,000) |
| financing Financing |
(184,151) |
(199,065) |
(467,006) |
| Applications for shares | 50,245 | - | - |
| Proceeds from share issues | - | - | 1,150,000 |
| Share issue costs |
- |
- |
(64,640) |
| Net cash inflow from financing |
50,245 |
- |
1,085,360 |
| (Decrease)/increase in cash 11 | (133,906) | (199,065) | 618,354 |
1. Basis of preparation and going concern
The interim financial information is prepared in accordance with the historical cost convention and in accordance with applicable accounting standards in the United Kingdom and the Statement of Recommended Practice 'Accounting for Oil and Gas Exploration, Development, Production and Decommissioning Activities'.
The financial information has been prepared on a going concern basis. The Group's ability to continue as a going concern is contingent upon raising additional funds to cover appraisal and development activities and working capital requirements. In the absence of being able to raise funds, the going concern basis may not be appropriate with the result that the Group may have to realise its assets and extinguish its liabilities other than in the ordinary course of business at amounts different from those stated in this interim report. No allowance for such circumstances has been made in this interim report as the directors believe that the Group will be able to raise further funds in the future. The Company has raised £2,000,000 before expenses from share placing's after 31 December 2006 to provide additional working capital and fund its exploration projects.
The results for the six months ended 31 December 2006 are unaudited and do not constitute statutory accounts as defined in section 240 of the Companies Act 1985. They have been prepared using accounting bases and policies consistent with those used in the preparation of the financial statements of Uranium Resources Plc for the eighteen months ended 30 June 2006.
The comparative figures for the eighteen months ended 30 June 2006 are extracted from the statutory financial statements which have been filed with the Registrar of Companies and which contain an unqualified audit report and did not contain statements under Section 237(2) or (3) of the Companies Act 1985.
2. Taxation
No liability to UK or overseas taxation has arisen during the period and no provision for deferred tax was considered necessary.
3. Loss per ordinary share
The basic and diluted loss per ordinary share have been calculated using the loss for the six months ended 31 December 2006 of £433,438 (six months to 31 December 2005 - loss of £163,865; eighteen months ended 30 June 2006 - loss of £480,510). The basic and diluted loss per ordinary share was calculated using a weighted average number of ordinary shares in issue of 211,000,000 (six months to 31 December 2005 - 208,475,410; eighteen months ended 30 June 2006 - 198,358,879).
4. Intangible assets
| 4. Intangible assets | |||
| The intangible assets can | be summarised as follows: | ||
| Exploration and appraisal expenditure |
Goodwill |
Total |
|
| Cost | |||
| At 1 July 2006 Additions |
41,179 54,117 |
349,999 - |
391,178 54,117 |
| At 31 December 2006 Amortisation At 1 July 2006 Amortisation for the period |
95,296 - - |
349,999 (27,708) (17,500) |
445,295 (27,708) (17,500) |
| At 31 December 2006 | - | (45,208) | (45,208) |
| Net book value At 31 December 2006 |
95,296 |
304,791 |
400,087 |
| At 30 June 2006 | 41,179 | 322,291 | 363,470 |
The goodwill of £349,999 arose on the acquisition of the Company's subsidiary undertaking, Deep Yellow Tanzania Limited during the period ended 30 June 2006. Goodwill is being amortised over the Directors' estimate of its useful economic life of 10 years until production commences. On commencement of production, goodwill will be amortised on a unit-of-production basis based on proven and probable reserves.
In accordance with the accounting policies, the Directors have assessed the value of the exploration and appraisal expenditure carried in the accounts as intangible fixed assets. In the opinion of the Directors, no impairment provision is considered necessary against the exploration and appraisal expenditure at 31 December 2006.
5. Provision of liabilities and charges
| Unaudited | Unaudited Audited | |
| 31December 2006 | 31 December 30 June 2006 2006 |
|
| £ |
£ £ |
|
| At 1 July 2006 | - | - - |
| National insurance on share-based payments |
24,000 |
- - |
| At 31 December 2006 | 24,000 | - - |
The charge for national insurance on share-based payments has been calculated by reference to the difference between the market value of the underlying shares at the balance sheet date and the exercise price of the share options, as required by Urgent Issues Task Force ('UITF') 25.
6. Share capital
| Unaudited | Audited | |
| 31 December | 30 June | |
| 2006 | 2006 | |
Authorised |
£ |
£ |
| 10,000,000,000 ordinary shares of 0.1p each Allotted, called up and fully paid |
10,000,000 |
10,000,000 |
| 211,000,000 ordinary shares of 0.1p each | 211,000 | 211,000 |
The share capital and the share options at the beginning and the end of the period are summarised below:
| Number of shares |
Number of options |
||
| At 1 July 2006 | 211,000,000 | 10,000,000 | |
| Share | options cancelled on resignation of director | - | (10,000,000) |
| Share |
options granted |
- |
30,000,000 |
| At 31 | December 2006 | 211,000,000 | 30,000,000 |
The details of share options outstanding at 31 December 2006 are as follows:
| Number of options |
Option price |
Exercisable between |
| 15,000,000 |
2.5p |
29/11/2006 to 28/11/2011 |
| 15,000,000 | 5p | 29/11/2006 to 28/11/2011 |
| 30,000,000 |
7. Share based payments
| Unaudited | Unaudited Audited | ||
|---|---|---|---|
| six months ended | six months ended Eighteen months | ||
| 31 December 2006 | 31 December 2005 ended 30 June 2006 | ||
| The Group recognised the following charge | |||
| in | the profit and loss accounts in respect | ||
| of |
its share based payment plans: |
||
| As | required by Financial Reporting | ||
| Standard ('FRS') 20 | 234,000 | - - | |
| As |
required by UITF 25 (note 5) |
24,000 |
- - |
| 258,000 | - - | ||
These are based on the requirements of FRS 20 and UITF 25 on share based payments. For this purpose, the weighted average estimated fair value for the share options granted was calculated using a Black-Scholes option pricing model. The volatility measured at the standard deviation of expected share price return is based on statistical analysis of the share price over the 6 month period to 31 December 2006 and this has been calculated at 27.5%. The risk free rate has been taken as 5%. The estimated fair values and other details which have been processed into the model are as follows:
| Number of options | Grant date | Option price | Fair value | Expected exercise | |
| date | |||||
| £ |
£ |
£ |
£ |
||
| 15,000,000 | 28/11/2006 | 2.5p | 1.15p | 28/11/2011 | |
| 15,000,000 30,000,000 |
28/11/2006 | 5p | 0.41p | 28/11/2011 | |
8. Statement of movements of reserves
The movements in the group's reserves during the period were as follows:
| Share-based | ||||
| Share | Own shares | payments | Profit | |
| premium | reserve | reserve | and loss | |
| £ |
£ |
£ |
£ |
|
| At 1 July 2006 | 1,174,360 | - | - | (413,843) |
| Retained losses for the period | - | - | - | (433,438) |
| Cost of share-based payments (note 7) | - | - | 234,000 | - |
| Applications for shares |
- |
50,245 |
- |
- |
| At 31 December 2006 | 1,174,360 | 50,245 | 234,000 | (847,281) |
The application for shares of £50,245 represents funds received from prospective shareholders of the Company for which shares were allotted after the balance sheet date.
9. Reconciliation of movements in shareholders' funds - equity only
| Unaudited | Unaudited | Audited | |
| Six months to | Six months to | Year ended | |
| 31 | December 2006 31 | December 2005 | 30 June 2006 |
| £ |
£ |
£ |
|
| Loss for the period | (433,438) | (163,865) | (480,510) |
| Dividends |
- |
- |
- |
| (433,438) | (163,865) | (480,510) | |
| Applications for shares | 50,245 | - | - |
| Shares issued (net of expenses) | - | 300,000 | 1,385,360 |
| Share-based payments (note 7) |
234,000 |
- |
66,667 |
| (149,193) | 136,135 | 971,517 | |
| Opening shareholders' funds |
971,517 |
1,003,889 |
- |
| Closing shareholders' funds | 822,324 | 1,140,024 | 971,517 |
10. Reconciliation of operating loss to net cash outflow from operating activities
| Unaudited | Unaudited | Audited | |
| Six months to | Six months to | Year ended | |
| 31 | December 2006 31 | December 2005 | 30 June 2006 |
| £ |
£ |
£ |
|
| Group operating loss | (445,118) | (177,575) | (515,182) |
| Amortisation of goodwill | 17,500 | 10,208 | 27,708 |
| (Increase)/decrease in debtors | (13,620) | 3,387 | (2,182) |
| Increase in creditors | 3,954 | - | 12,489 |
| Loss on disposal of fixed assets | - | 1,205 | - |
| Share based payments charge Net cash outflow from operating |
258,000 |
- |
66,667 |
| activities | (179,284) | (162,775) | (411,130) |
11. Analysis of changes in net funds
| Audited | Unaudited | ||
| 1 | July 2006 | Cash flows 31 | December 2006 |
| £ |
£ |
£ |
|
| Cash at bank and in hand | 618,354 | (133,906) | 484,448 |
12. Subsequent Events
The Company issued 80,000,000 new ordinary shares at 2.5p each in January 2007 to raise additional capital of£2,000,000 before expenses.
**ENDS**
For further information please visit www.uraniumresources.co.uk or contact:
| Ross Warner | Uranium Resources | plc | Tel | 07760 487 769 | |
| James Pratt | Uranium Resources | Plc | Tel | 07747 832 043 | |
| Hugh Warner | Uranium Resources | Plc | Tel | +618 9388 3006 | |
| Hugh Oram | Nabarro Wells & Co. Limited | Tel | 020 7710 7400 | ||
| Hugo de Salis | St Brides Media & | Finance | Ltd | Tel | 020 7242 4477 |
| Felicity Edwards | St Brides Media & | Finance | Ltd | Tel | 020 7242 4477 |