Last checked at 16 Mar 2023 08:09
16 March 2023
AURA ENERGY LIMITED
("Aura" or the "Company")
Interim Financial Report
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 2022.
A full version of the Interim Financial report can also be viewed here: http://www.rns-pdf.londonstockexchange.com/rns/2066T_1-2023-3-16.pdf
The Interim Financial Report is also available on the Company's website at: www.auraenergy.com.au
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
Review of operations and activities
Financial review
Aura Energy Limited ("Aura", or the "Company") has reported a loss for the half-year ended 31 December 2022 of $3,316,842 (31 December 2021: $624,048). As at 31 December 2022, the consolidated entity's net assets decreased to $33,146,135 compared with $33,614,450 as at 30 June 2022, including cash reserves of $6,203,179 (30 June 2022: $9,950,777).
Review of operations
The Company is an ASX and AIM listed resources company, transitioning from exploration to production from the Tiris Uranium Project in Mauritania and ongoing development of the Häggån Vanadium Polymetallic Project, Sweden. The Company also holds gold and base metals projects in Mauritania.
During the six-month period to 31 December 2022 (the "Period"), Aura completed product analysis and infill drilling activities at its flagship Tiris Project in Mauritania, and accelerated the transition to development activities under a revised strategy, with multiple milestones due to be reached in the second half of FY23.
Tiris Uranium Project ("Tiris" or the "Project"), Mauritania
The Tiris project is the Company's flagship project.
Demand for uranium is expected to grow significantly over the next two decades. The Company has the potential to develop a low-capital/low-operating-cost mining project for the benefit of the Company's shareholders and the Mauritanian people. The World Nuclear Association (WNA) has reported that there are currently 60 nuclear reactors under construction around the world, 104 nuclear reactors in the planning phase and 338 nuclear reactors being evaluated and proposed around the world by various governments and entities. The WNA reports that approximately half of the forecast growth in nuclear power generation will be in China.
During the Period, the Company:
• Completed 11,600 metres of infill drilling program, which increased Measured & Indicated Resources by 52% to 58.9 million pounds of U3O8 , 113 million tonnes at 236 ppm U3O8 at a 100 ppm cut-off grade.
• Completed initial radiometric fieldwork with the goal of growing resources.
• The Australian Nuclear Science and Technology Organisation (ANSTO) undertook, leaching, Ion Exchange and purification tests on pilot plant products in Sydney and confirmed that the uranium product planned to be produced at the Tiris Project will meet ASTM International specifications (there are approximately 12,500 global standards set by this international body which has 140 countries as members). These beneficiation trials have cleared the way for marketing discussions with downstream nuclear utilities and converters.
• Submitted management plans for authorisation of uranium production and export to the National Authority for Radiation-protection, Safety and Nuclear Security ("ARSN") in Mauritania.
The Company:
• Progressed, on schedule, the optimisation of the Tiris project feasibility study, which is assessing the feasibility to increase the annual production target of U3O8. The Company's goal is to complete the optimisation feasibility study during the January-March 2023 quarter which will provide key inputs for the Front-End Engineering and Design ("FEED") studies.
• Commenced the FEED studies.
Subsequently to the Period end, the Company executed a 30-year Mining Convention with the Government of Mauritania a 30-year Mining Convention for the Tiris project. The Convention was announced on 1 February 2023. This agreement confirms the security of tenure and the fiscal stability that enables the development of the Tiris Project and near-term uranium production.
Häggån Polymetallic Project ("Häggån Project"), Sweden
The Häggån Project contains a world-class vanadium resource and has the potential to contribute to development as a significant battery metals hub in Europe. The polymetallic nature of the project would also result in the recovery of nickel, molybdenum, and uranium. Recovery of by-products will be assessed as the project proceeds, dependent on economic viability and permitting requirements. The Swedish Parliament is currently debating the present restrictions on uranium production and whether they should be rescinded. National elections were held in Sweden in September 2022 and energy security was a central issue during the election campaign. The newly elected parties have stated their intent to remove the present ban on uranium mining and to support the streamlining of permitting battery metal projects.
The focus of the Company is to progress the conversion of the exploration licenses into an exploitation permit to progress the approvals to develop the Häggån Project in 2024. The exploitation permit requires the completion of a technical study, an industry-standard geological resource and an initial environment assessment including the commencement of baseline environmental monitoring.
During the Period, the Company:
• Progressed the economic study into the development and production at the Häggån Project key to obtaining the exploitation permit.
• Progressed strategies for the Häggån Project to support Sweden's industrial decarbonisation strategy through an integrated value chain from primary production to V2O5 electrolyte and potential expansion of their nuclear energy capacity.
• Development of enhanced consultation and collaboration strategies for all stakeholders at the national, regional, SAMI peoples and community levels.
Gold and base metals assets, Mauritania
The Company has fulfilled its expenditure obligation to earn a 70% equity interest in Nomads Mining sarl which holds the Nderk tenement. At this time, the Company is in the process of completing the documentation to register its 70% equity interest.
Applications for the second exploration period under the granted exploration tenements held by Tiris International Mining Company sarl ("TIMCO") are awaiting approval from the Ministry of Petroleum, Energy and Mines ("MPEM") and, based on discussions with MPEM are expected in the second half of 2023.
Corporate
On 17 October 2022, David Woodall was appointed as Managing Director and Chief Executive Officer. Mr Woodall brings over 30 years of international mining experience across technical, managerial, consulting, executive and director roles to the Company.
Dr Will Goodall, who had held the position of acting CEO, has accepted the role of Chief Operating Officer with effect from 17 October 2022.
Directors' Report
The directors present their report on the consolidated entity consisting of the Company and its controlled entities at the end of, or during, the half-year ended 31 December 2022. Financial comparisons used in this report are of results for statements of profit and loss and cash flow for the half-year ended 31 December 2021 (the prior corresponding period) and the statement of financial position for 30 June 2022.
Directors and company secretary
The following persons held office as directors of the Company during the financial period:
Mr Philip Mitchell
Dr Warren Mundine
Mr Bryan Dixon
Mr Patrick Mutz
Mr David Woodall (appointed 17 October 2022)
Principal activities
The principal activities of the consolidated entity during the financial Period were the exploration and evaluation of uranium and vanadium in Mauritania and Sweden.
There was no significant change in the nature of these activities during the Period.
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.
Events since the end of the reporting period
Exercise of options
Between the period end and the date of this report, shareholders have exercised 1,910,877 options at an exercise price of $0.052 and 1,923,076 options at an exercise price of $0.104, raising a total of $299,366 in funds.
Mining Conventions signed with the Government of Mauritania
The Company announced on 1 February 2023, that it had obtained the Mauritanian Government's approval and had executed mining conventions providing tenure security and fiscal certainty for an initial 30-year period.
Shareholders' Agreement signed with Agence Nationale de Recherches Géologiques et du Patrimoine Minier ("ANARPAM").
The Company announced on 1 February 2023, that its subsidiary, Tiris Ressources SA ("Tiris SA''), and the Mauritanian Government's State Owned Enterprise (SOE) ANARPAM, had signed a Shareholders' Agreement. The Agreement creates a long-term partnership with Mauritania in the development and operation of the Tiris Project. In the agreement, ANARPAM will be a 15% shareholder in Tiris SA with an option to acquire at an independent market price an additional 5%. These arrangements are consistent with the Mauritanian Mining Code which provides for up to 20% Mauritanian Government ownership.
No other matter or circumstance has arisen since 31 December 2022 that has significantly affected the consolidated entity's operations, results or state of affairs, or may do so in future periods.
Proceedings on behalf of the consolidated entity
The Company has lodged with the Kingdom of Sweden a claim for compensation for the alleged expropriation of its rights to mine and produce uranium concentrate from the tenements held by Vanadis Battery Metals AB, a controlled entity of the Company.
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 6 of the Interim Financial Report.
This report is made in accordance with a resolution of directors.
Mr David Woodall Managing Director & CEO
16 March 2023
Condensed consolidated statement of profit or loss and other comprehensive income
For the half-year 31 December 2022
Consolidated entity
Notes | 31 December 2022 $ | 31 December 2021 $ | |
Other income | 3 | - | 92,496 |
Other gains/(losses) - net | 3 | (129,426) | 44,822 |
Employee benefits | (398,293) | (223,034) | |
General and administration expenses | 3 | (1,151,054) | (473,124) |
Share-based payments | 6(c) | (1,221,745) | (62,160) |
Operating loss | (2,900,518) | (621,000) | |
Finance income |
24,112 |
29 | |
Finance expenses | - | (4) | |
Finance costs - net | 24,112 | 25 | |
Loss before income tax |
(2,876,406) |
(620,975) | |
Income tax expense | - | - | |
Profit from continuing operations | (2,876,406) | (620,975) | |
Profit/(loss) from disposal group | 7 | (440,436) | (3,073) |
Loss for the Period |
(3,316,842) |
(624,048) | |
Profit is attributable to: | |||
Owners of Aura Energy Limited | (3,304,204) | (624,048) | |
Non-controlling interests | (12,638) | - | |
(3,316,842) | (624,048) | ||
Other comprehensive income Items that may be reclassified to profit or loss: | |||
Exchange differences on translation of foreign operations | 9,696 | 66,676 | |
Total comprehensive loss for the Period | (3,307,146) | (557,372) | |
Total comprehensive income for the Period is attributable to: | |||
Owners of Aura Energy Limited | (3,294,789) | (557,372) | |
Non-controlling interests | (12,357) | - | |
(3,307,146) | (557,372) | ||
Cents |
Cents | ||
Loss per share for profit attributable to the ordinary equity holders of | |||
the Company: Basic/diluted loss per share |
(0.64) |
(0.16) |
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 2022
Consolidated entity | |||
Notes | 31 December 2022 $ | 30 June 2022 $ | |
ASSETS | |||
Current assets Cash and cash equivalents |
5(a) |
6,203,179 |
9,950,777 |
Other receivables | 34,480 | 21,501 | |
Other current assets | 186,978 | 155,246 | |
Assets classified as disposal group | 7 | 2,333,331 | 2,453,620 |
Total current assets 8,757,968 12,581,144 | |||
Non-current assets Exploration and evaluation |
4 |
25,570,326 |
22,323,176 |
Plant and equipment | 3,791 | 4,557 | |
Total non-current assets | 25,574,117 | 22,327,733 | |
|
| ||
Total assets | 34,332,085 | 34,908,877 | |
LIABILITIES | |||
Current liabilities Trade and other payables |
5(b) |
1,012,448 |
1,201,706 |
Employee benefit obligations | 47,061 | 14,947 | |
Other current liabilities | 667 | 1,067 | |
Liabilities directly associated with assets classified as disposal group | 7 | 125,774 | 76,707 |
Total current liabilities | 1,185,950 | 1,294,427 | |
Total liabilities |
1,185,950 |
1,294,427 | |
Net assets | 33,146,135 | 33,614,450 | |
EQUITY | |||
Share capital | 6(a) | 71,533,328 | 69,357,543 |
Other equity | 314,346 | 314,346 | |
Other reserves | 6(b) | 4,619,286 | 3,946,825 |
Accumulated losses | (43,545,041) | (40,240,837) | |
Non-controlling interests | 224,216 | 236,573 | |
| |||
Total equity | 33,146,135 | 33,614,450 | |
The above condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.
Condensed consolidated statement of changes in equity
For the half-year 31 December 2022
| Attributable to owners of Aura Energy Limited | Accumulated | Total | ||
Consolidated entity | Share capital $ | Other equity $ | Other reserves $ | losses $ | equity $ |
Balance at 1 July 2021 | 56,227,736 | 314,346 | 2,065,843 | (36,607,011) | 22,000,914 |
Loss for the Period |
- |
- |
- |
(624,048) |
(624,048) |
Other comprehensive income | - | - | 66,676 | - | 66,676 |
Total comprehensive income/(loss) for the Period | - | - | 66,676 | (624,048) | (557,372) |
Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs and tax |
(228,936) |
- |
- |
- |
(228,936) |
Options issued | - | - | 2,030,390 | - | 2,030,390 |
Options exercised | 1,931,993 | - | (454,041) | - | 1,477,952 |
Performance shares converted | 175,000 | - | (175,000) | - | - |
Loan funded securities | - | - | 62,160 | - | 62,160 |
1,878,057 | - | 1,463,509 | - | 3,341,566 | |
Balance at 31 December 2021 |
58,105,793 |
314,346 |
3,596,028 |
(37,231,059) |
24,785,108 |
Condensed consolidated statement of changes in equity
For the half-year 31 December 2022
Consolidated entity |
Share capital $ |
Other equity $ |
Other reserves $ |
Accumulated losses $ |
Total $ | Non- controlling interests $ |
Total equity $ |
Balance at 1 July 2022 | 69,357,543 | 314,346 | 3,946,825 | (40,240,837) | 33,377,877 | 236,573 | 33,614,450 |
Loss for the Period |
- |
- |
- |
(3,304,204) |
(3,304,204) |
(12,638) |
(3,316,842) |
Other comprehensive income | - | - | 9,415 | - | 9,415 | 281 | 9,696 |
Total comprehensive income/(loss) for the Period | - | - | 9,415 | (3,304,204) | (3,294,789) | (12,357) | (3,307,146) |
Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs and tax |
(11,498) |
- |
- |
- |
(11,498) |
- |
(11,498) |
Share-based payments | 243,000 | - | - | - | 243,000 | - | 243,000 |
Options exercised | 1,944,283 | - | (558,699) | - | 1,385,584 | - | 1,385,584 |
Loan funded securities | - | - | 1,221,745 | - | 1,221,745 | - | 1,221,745 |
2,175,785 | - | 663,046 | - | 2,838,831 | - | 2,838,831 | |
Balance at 31 December 2022 |
71,533,328 |
314,346 |
4,619,286 |
(43,545,041) |
32,921,919 |
224,216 |
33,146,135 |
The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Condensed consolidated statement of cash flows
For the half-year 31 December 2022
Consolidated entity
| |||
31 December | 31 December | ||
Notes | 2022 $ | 2021 $ | |
Cash flows from operating activities Payments to suppliers and employees (inclusive of GST) |
(1,449,937) |
(1,200,788) | |
Interest received | 24,112 | 29 | |
Net cash outflow from operating activities | (1,425,825) | (1,200,759) | |
|
| ||
Cash flows from investing activities
|
| ||
Payments for property, plant and equipment | - | (3,010) | |
Payments for exploration and evaluation | (4,295,300) | (1,461,292) | |
Net cash outflow from investing activities | (4,295,300) | (1,464,302) | |
Cash flows from financing activities Proceeds from issues of shares and other equity securities |
- |
2,005,390 |
Share issue transaction costs | (11,498) | (453,226) |
Repayment of borrowings | - | (312,500) |
Exercise of options | 1,385,184 | 1,477,952 |
Net cash inflow from financing activities | 1,373,686 | 2,717,616 |
Net (decrease)/increase in cash and cash equivalents |
(4,347,439) |
52,555 |
Cash and cash equivalents at the beginning of the financial period | 10,706,700 | 3,206,855 |
Effects of exchange rate changes on cash and cash equivalents | (33,870) | 3,459 |
Cash and cash equivalents at end of the Period | 5(a) 6,325,391 | 3,262,869 |
The above condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.
For full Notes to the condensed consolidated financial statements please review the Interim Financial Report via the link above.
For more information please contact:
David Woodall Managing Director and CEO Aura Energy Limited info@auraenergy.com.au
| Paul Ryan Citadel-MAGNUS Investor & Media Relations Pryan@citadelmagnus.com +61 409 296 511
|
SP Angel Corporate Finance LLP (Nominated Advisor and Joint Broker) David Hignell Kasia Brzozowska Grant Barker +44 (0) 203 470 0470
| WH Ireland Limited (Joint Broker) Jessica Cave Andrew de Andrade +44 (0) 207 220 1666
|
About Aura Energy (ASX: AEE, AIM AURA)
Aura Energy is an Australian-based minerals company that has major uranium and polymetallic projects with large resources in Africa and Europe. The Company is now focused on uranium production from the Tiris Project, a major greenfields uranium discovery in Mauritania.
Aura also completed a capital estimate update for the Tiris Definitive Feasibility Study, to reflect current global pricing, with these 2021 figures reconfirming Tiris as one of the lowest capex, lowest operating cost uranium projects.
In October 2021, the Company entered a US$10m Offtake Financing Agreement with Curzon, which includes an additional up to US$10m facility, bringing the maximum available under the agreement to US$20m.
In 2023, Aura will continue to transition from a uranium explorer to a uranium producer, to capitalise on the rapidly growing demand for nuclear power as the world continues to shift towards a decarbonised energy sector.