Aura Egy Share News (AURA)

LONDON (Alliance News) - Aura Energy PLC said Friday interim losses narrowed after listing costs the previous year disappeared as it continued to progress its Tiris uranium project in Mauritania amid a spin-off of its Swedish business.

For the six months ended December 2017, pretax loss narrowed to AUD931,680 from AUD1.5 million the year prior. Although no revenue was generated in either year, finance income fell to AUD593 from AUD1,784 the year before.

This was after listing costs the year prior - amounting to AUD683,121 - pushed its half year results deeper into the red.

"During the half-year, the company continued to progress the Tiris project feasibility study and resolved to pursue a separate listing by way of an IPO for its vast Haggan polymetallic property which contains significant quantities of battery metals including vanadium, cobalt and nickel," Aura Executive Chairman & Chief Executive Officer Peter Reeve said.

"Whilst the uranium price has shown modest recovery during the half-year, following cutbacks by large producers, the Tiris project remains the company's best near-term cashflow project with C1 cash costs of USD19.40 per pound U3O8," Reeve added. "This estimated cash cost per pound is below both spot and contract prices at this time."

"The key milestone achieved during the half-year for the development of the Tiris project was the approval by Mauritanian authorities of the environmental permit," Reeve said. "The company has discussed the delay to the grant of gold tenement with the government. During the most recent meetings with the government, in regards to this delay, the company was informed that the tenement will be granted soon. A key diversification strategy for the company is gold and base metals and the ground subject to the tenement applications is highly prospective."

"The Haggan Battery Metals strategy has evolved from the Company's desire to maximise the output of the vast polymetallic resource," Reeve continued. "The board of directors resolved towards the end of the half-year to list the Haggan Battery Metals project as a separate vehicle and therefore, provide this separate vehicle with management, funding and technical drive to ensure that outcome. The rapid development of the battery sector and the significant vanadium content of the Haggan Battery Metals project have created significant opportunities for Aura."

During the interim period, Aura raised AUD1.1 million for working capital purposes.

Shares in Aura were 7.7% lower at 1.2 pence on Friday.