Uranium Resources Plc Regulatory News (URA)

11 November 2015

Uranium Resources Plc / Market: AIM / Epic: URA / Sector: Exploration

Uranium Resources plc

("Uranium Resources" or the "Company")

Final Results

Uranium Resources plc, the AIM listed uranium exploration company operating in Tanzania, announces its results for the year ended 30 June 2015.

For further information please visit www.uraniumresources.co.uk or contact:

Notes to editors

Uranium Resources plc is an AIM listed exploration and development company. It is the Company's strategy to advance its existing assets and strengthen its portfolio via opportunistic acquisition. Uranium Resources has uranium licences in the highly prospective Karoo Basin in Southern Tanzania.

MANAGING DIRECTOR'S STATEMENT

The Company is a uranium explorer with its principal focus on the Mtonya Project and various exploration prospects within the Project area ('Mtonya' or 'the Project') in the United Republic of Tanzania. The Mtonya Project area hosts roll-front uranium mineralisation and is expected to be amenable to in-situ recovery ('ISR'), the most cost-effective and environmentally acceptable method of uranium extraction.

In May 2013, the Company announced a maiden uranium resource for its flagship Mtonya project. The Project achieved this major milestone in one of the most challenging times for the uranium industry as uncertainty caused by the Fukushima event continues to persist.

Mtonya is currently on care and maintenance, however, during the reporting period, the Company continued to evaluate its exploration/development strategy, including corporate transactions, in order to advance and realise Mtonya's value.

The Company's Board believes that Mtonya has the potential to become a world-class uranium deposit and that the Company will benefit from increased global demand for uranium in the future, if world's leading economies seek to increase their power supplies in an efficient and safe way.

Further to developing a maiden resource at Mtonya, the Company entered into a loan agreement with Estes Limited ('Estes'), its cornerstone investor and strong supporter of the Project, in February 2015. This agreement provides the Company with a US$0.2 million bridge funding as we explore the opportunities to finance a new drilling programme with the objective of expanding the deposit's footprint. The previous US$1 million and US$0.3 million loans from Estes were extended till 31 March 2016.

Uranium Resources remains committed to its strategy of building a leading uranium exploration and development company focussed on projects which are amendable to ISR. The Company continues to identify and assess new resource opportunities which complement its investment criteria.

Mtonya

The Company's 100%-owned flagship Mtonya project is located approximately 60 km south of the significant Mkuju River deposit, which is owned by ARMZ and operated by Uranium One, and has an indicated and measured resource of 93.3 Mlb U3O8 grading 257 ppm U3O8.

The Company's exploration model is based on the well-founded premise that the neighbouring Mkuju River project to the north of Mtonya is a small segment of a regional mineralised roll-front feature, most of which has no surface exposure. 

The Company believes that the Mkuju River is part of a regional roll-front that was eroded after being uplifted along a regional normal fault, forming narrow, thin, and disconnected pods and lenses of uranium ore that are dominated by secondary uranium minerals such as metaautunite and metauranocircite. The near-surface uranium mineralisation at Mtonya remains a valid exploration target, but its significance is viewed as a lesser priority in contrast with deeper mineralisation that may yield a high class uranium deposit, which is amenable to ISR.

The completion of the 26,485 m resource-definition drilling programme in 2012 allowed the Company to delineate a maiden CIM-compliant Inferred Resource of 2.014 Mlb U3O8 grading 255 ppm U3O8. On a 250x50 m grid the resource drilling remains fairly coarse and significant upside potential remains untested along strike of the roll-front feature and at depth. Volumetrically, only 1/6 of prospective lithologies have been systematically drilled at Mtonya.

The Company has been refining its extensive in-fill and step-out drilling programme for Mtonya to test the deeper redox tiers and extend the known uranium mineralization along strike. The size of the drilling programme to be undertaken will be announced in due course. The planned programme includes both diamond and reverse-circulation (RC) drilling and pump and metallurgical testwork on the Mtonya sandstone.

The Board has decided to delay drilling at Mtonya until the uranium market fundamentals sufficiently improve and the true potential of the Project can be recognised by the wider market.

Some of the Company's licences will have reached the end of their term within 12 months of the date of the group financial statements. This includes the main Mtonya licence. In such cases license renewal, extension, or conversion of the licence has been or will be applied for. While management currently expect that each renewal, extension or conversion will be granted this cannot be guaranteed. Interests in exploration and mining tenements in Tanzania are governed by Tanzanian legislation and are evidenced by the granting of leases or licences. Each lease or licence is for a specific term and carries with it work commitments and reporting conditions as well as other conditions requiring compliance. These conditions include the requirement, for exploration licences, for reduction in the area held under licence from time to time unless it is considered that special circumstances apply. They also include that at the end of the exploration licence period application be made for extension of the exploration licence or for conversion to a mining licence.

Lukimwa

The Lukimwa prospect is located approximately 28 km southwest of Mtonya. This prospect forms a part of the 36-kilometre long Mtonya redox corridor and is thought to be the southwestern extension of the Mtonya roll-front. The exploration programme for Mtonya includes a limited number of prospecting drill-holes at Lukimwa.

Other regional licenced areas

The Company is establishing itself as a uranium-focused exploration company and we view Mtonya as our priority project. We are also confident that new exploration opportunities will be generated on our other licensed areas.

Financial Results

Uranium Resources is at the exploration stage of its development. It is not producing revenue and as such I am reporting a loss of US$393,000 for the year ended 30 June 2015 (2014: loss US$387,000).

Funding and going concern

In March 2013, March 2014 and February 2015 the Company entered into a US$1 million, US$300 thousands and US$200 thousands loan facility agreements ('the Loans') respectively with its major shareholder and strategic investor Estes Limited ('Estes'). The Loans, which are unsecured and bear interest at LIBOR, are being used to fund working capital requirements.

At 30 June 2015 the Company had drawn down US$1,401,000 (excluding interest) against these facilities. Estes continues to show its support in providing this flexible funding option to the Company. The Group plans to continue its work programme in the next twelve months and beyond as it develops and evaluates its Uranium project pipeline. 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 twelve months; the Group will therefore need to raise additional funds. The Company has received a confirmation of interest from Estes Limited in providing additional finance facilities to the Company. 

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 twelve 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 in full on 31 March 2016 and 18 August 2016 accordingly. Estes may consider extending its outstanding loans on an ongoing basis.

Outlook

The Company's ability to fund further exploration and development at Mtonya continues to be affected by adverse uranium market conditions. The Company is currently reviewing a number of strategic alternatives including, but not limited to, joint ventures, strategic partnerships, and mergers or other corporate transactions to enhance shareholder value.

Major shareholder Estes continues to be supportive of the Company and, at this stage, has indicated it intends to invest alongside a suitable strategic investor. The Company will provide further updates in due course.

Uranium Resources has made progress with its Mtonya project - advancing it from a grassroots exploration opportunity to a resource stage. This was made possible by applying solid geoscience and by the professionalism of our personnel. The Board believes that these factors will continue to play a crucial role in unlocking Mtonya's potential and return value to our shareholders.

Alex Gostevskikh

Managing Director

10 November 2015

URANIUM RESOURCES PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2015

The results shown above related entirely to continuing operations and are attributable to equity shareholders of the Company.

URANIUM RESOURCES PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2015

The financial statements were approved by the Board of Directors and signed 10 November 2015 on its behalf by:

Alex Gostevskikh

Managing Director

Company Registration Number: 05329401

URANIUM RESOURCES PLC

COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2015

The financial statements were approved by the Board of Directors and signed 10 November 2015 on its behalf by:

Alex Gostevskikh

Managing Director

Company Registration Number: 05329401

URANIUM RESOURCES PLC

STATEMENTS OF CHANGES IN EQUITY 

FOR THE YEAR ENDED 30 JUNE 2015

Consolidated statement of changes in equity

Company statement of changes in equity

URANIUM RESOURCES PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2015

URANIUM RESOURCES PLC

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2015

URANIUM RESOURCES PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

1. Background and accounting policies

The Company is registered in England and Wales, having been incorporated on 11 January 2005 under the Companies Act with registered number 05329401 as a public company limited by shares. The Company's shares are traded on the AIM Market ("AIM") of The London Stock Exchange plc.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied to all years presented, unless otherwise stated below.

The Company's and Group's financial statements for the year ended 30 June 2015 and for the comparative year ended 30 June 2014 have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") and IFRIC (International Financial Reporting Interpretations Committee) interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

1.1 Basis of preparation

The Group financial statements are prepared on the going concern basis, under the historical cost convention as modified for fair value accounting, if applicable, and in accordance with IFRS, including IFRS6 'Exploration for and Evaluation of Mineral Resources'. The Parent Company's financial statements have also been prepared in accordance with IFRS and the Companies Act 2006.

The Group and Parent Company financial statements are presented in US$ and have been rounded to the nearest US$'000.

The consolidated financial statements incorporate the accounts of the Company and its subsidiaries and have been prepared by using the principles of acquisition accounting ("the purchase method"), which includes the results of the subsidiaries from their dates of acquisition. Intra-group sales, profits and balances are eliminated fully on consolidation.

1.2 Going concern

In February 2015, the company increased its loan facilities with Estes by US$200,000 to a total of US$1,490,000. The facilities, which are unsecured and bear interest at LIBOR, are for working capital. At 30 June 2015, the Company had drawn down US$1,401,000 against the available facilities and had incurred accrued interest US$8,284 for the reporting period (US$14,322 - accumulated amount of interests).

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 in June 2015, 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 twelve months; the Group will therefore need to raise additional funds. The Company has received a confirmation that Estes shall continue to provide debt funding to the Company should the Company be unable to raise funds on the market or source funds by other means including but not limited to entering into joint-venture agreements, disposal of assets, restructuring or re-assignment of debt etc.

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 twelve 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 accounts are prepared on a going concern basis.

In March 2013, March 2014 and February 2015 the Company entered into a US$1 million, US$300 thousands and US$200 thousands loan facility agreements ('the Loans') respectively with its major shareholder and strategic investor Estes Limited ('Estes'). The Loans, which are unsecured and bear interest at LIBOR, are being used to fund working capital requirements.

At 30 June 2015, the Company had drawn down US$1,401,000 (excluding interest) against these facilities. Estes continues to show its support in providing this flexible funding option to the Company. The Group plans to continue its work programme in the next twelve months and beyond as it develops and evaluates its Uranium project pipeline. 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 twelve 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 twelve 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 in full on or before 31 March 2016 and 18 August 2016 accordingly. Estes may consider extending its outstanding loans on an ongoing basis.

1.3 New IFRS standards and interpretations

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 2014. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective

New and amended standards and interpretations

There were a number of new standards and interpretations, effective from 1 July 2014 that the Company applied for the first time in the current year. 

The nature and the impact of each new standard and amendment that may have an impact on the Company now or in the future, is described below. A few other amendments apply for the first time in 2015; however, they do not impact the annual financial statements of the Company. 

Other than the changes described below, the accounting policies adopted are consistent with those of the previous financial year.

Amendments to IAS 19 Defined Benefit Plans: Employee Contributions

IAS 19 requires an entity to consider contributions from employees or third parties when accounting for defined benefit plans. Where the contributions are linked to service, they should be attributed to periods of service as a negative benefit. These amendments clarify that, if the amount of the contributions is independent of the number of years of service, an entity is permitted to recognise such contributions as a reduction in the service cost in the period in which the service is rendered, instead of allocating the contributions to the periods of service.

This amendment is effective for annual periods beginning on or after 1 July 2014. The amendment is however not relevant to the Company, since the Company does not have defined benefit plans with contributions from employees or third parties.

Annual Improvements 2010-2012 Cycle

In the 2010-2012 annual improvements cycle, the IASB issued seven amendments to six standards. Below is a summary of some of the improvements with effective date of 01 July 2014. None of the improvements had

impact on the Company in the current year.

IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets

The amendment is applied retrospectively and clarifies in IAS 16 and IAS 38 that the asset may be revalued by reference to observable data on either the gross or the net carrying amount. In addition, the accumulated depreciation or amortisation is the difference between the gross and carrying amounts of the asset.

IAS 24 Related Party Disclosures

The amendment is applied retrospectively and clarifies that a management entity (an entity that provides key management personnel services) is a related party subject to the related party disclosures. In addition, an entity that uses a management entity is required to disclose the expenses incurred for management services.

Annual improvements 2011-2013 Cycle

These improvements are effective from 1 July 2014 and are not expected to have a material impact on the Company. They include:

IFRS 13 Fair Value Measurement

The amendment is applied prospectively and clarifies that the portfolio exception in IFRS 13 can be applied not only to financial assets and financial liabilities, but also to other contracts within the scope of IFRS 9 (or IAS 39, as applicable).

IAS 40 Investment Property

The description of ancillary services in IAS 40 differentiates between investment property and owner-occupied property (i.e., property, plant and equipment). The amendment is applied prospectively and clarifies that IFRS 3, and not the description of ancillary services in IAS 40, is used to determine if the transaction is the purchase of an asset or business combination.

Standards issued but not yet effective

Standards issued but not yet effective up to the date of issuance of the Company's financial statements are described below. This description is of standards and interpretations issued, which the Company reasonably expects to be applicable at a future date. The Company intends to adopt those standards when they become effective. The Company expects that adoption of these standards, amendments and interpretations in most cases not to have any significant impact on the Company's financial position or performance in the period of initial application. In cases where it will have an impact, the Company is still assessing the possible impact.

Standards issued but not yet effective

The following standards and interpretations have been issued or revised but were not yet effective for financial year ended 30 June 2015:

· IFRS 15: Revenue from Contracts with Customers (Effective 1 January 2016)

· IFRS 14: Regulatory Deferral Accounts (Effective 1 January 2016)

· IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation and Amortisation (Effective 1 January 2016)

· IAS 16 and IAS 41: Accounting for bearer plants (Effective 1 January 2016)

· IFRS 9 - Financial instruments (Effective 1 January 2018)

· IFRS 11 - Accounting for the acquisition of interests in a Joint Operation (Effective 1 January 2016)

· IAS 27 - Equity method in separate financial statements (Effective 1 January 2016)

· IFRS 5 - Noncurrent assets held for sale and discontinued operations (Effective 1 January 2016)

· IFRS 7 - Financial instruments: Disclosures (Effective 1 January 2016)

· IAS 19 - Employee benefits (Effective 1 January 2016)

· IAS 34 - Interim financial reporting (Effective 1 January 2016)

1.4 Exploration and evaluation expenditure

Once a licence has been obtained, all costs associated with exploration and evaluation are capitalised on a project-by-project basis, where a project may be a collection of geographically and geologically similar licences. The costs are carried forward on a project-by-project basis until it has been established that commercial reserves do not exist or are insufficiently supported by the potential carrying value of the project. Costs incurred include appropriate technical and administrative expenses but not general overheads.

Where possible, general Tanzanian costs attributable to projects are allocated to each project. However, where this is impractical, these general costs are held in a separate cost pool and are carried forward in one general pool of assets until it has been established that commercial reserves do not exist or are insufficiently supported by the potential carrying value of all Tanzanian projects.

When production commences, the accumulated costs for the relevant area of interest are transferred from intangible assets to tangible assets as "Developed Uranium Assets" and amortised over the estimated life of the commercial reserves on a unit of production basis, as discussed in note 1.7 below.

 1.5 Impairment of exploration and evaluation expenditure

The carrying value of unevaluated areas is assessed on at least an annual basis or when there has been an indication that impairment in value may have occurred. The impairment of unevaluated prospects is assessed as based on the Directors' intention with regard to future exploration and development of individual significant areas and the ability to obtain funds to finance such exploration and development.

1.6 Impairment of developed uranium assets

When events or changes in circumstances indicate that the carrying amount of developed uranium assets included within tangible assets may not be recoverable from future net revenues from uranium reserves attributable to that asset, a comparison between the net book value of the asset and the discounted future cash flows from the estimated recoverable uranium reserves is undertaken. To the extent that the carrying amount exceeds the recoverable amount, the asset is written down to its recoverable amount, with the write off charged to the statement of comprehensive income.

1.7 Amortisation of developed uranium assets

Developed uranium assets are amortised on a unit of production basis using the ratio of uranium production in the period to the estimated quantity of commercial reserves at the end of the period plus production in the period. Changes in estimates of commercial reserves or future development costs are dealt with prospectively.

1.8 Decommissioning costs

Where a material liability for the removal of production facilities and site restoration at the end of the field life exists, a provision for decommissioning is recognised. The amount recognised is the present value of estimated future expenditure determined in accordance with local conditions and requirements. An asset of an amount equivalent to the provision is also created and depreciated on a unit of production basis. Changes in estimates are recognised prospectively, with corresponding adjustments to the provision and the associated asset.

1.9 Cash and cash equivalents

Cash and cash equivalents are carried in the statement of financial position at cost and comprise cash in hand, cash at bank, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included within borrowings in current liabilities on the statement of financial position. For the purposes of the statement of cashflows, cash and cash equivalents also includes any the bank overdrafts.

1.10 Investments in subsidiaries

Investments in subsidiary companies are stated at cost less provision for impairment in the Company's statement of financial position.

1.11 Share based payments

The Company has made share-based payments to certain directors and employees by way of share options. The fair value of these payments is calculated by the Company using the Black Scholes option pricing model, as the Directors believe that the options are likely to be exercised nearer their expiry dates. The expense is recognised on a straight line basis over the period from the date of award to the date of vesting, based on the Company's best estimate of shares that will eventually vest.

1.12 Foreign currencies

(i) Functional and presentational currency

Items included in the Group's and Parent Company's financial statements are measured using the currency of the primary economic environment in which the Group operates ("the functional currency"). The Directors consider the Pound Sterling to be the Parent Company's functional currency. The Group and Company financial statements are presented in US$.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income. The year-end rate applied was £1: US$1.5717 (2014: £1: US$1.7028)

Transactions in the accounts of individual Group companies are recorded at the rate of exchange ruling on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rates ruling at the statement of financial position date. All differences are taken to the statement of comprehensive income.

1.13 Deferred taxation

Deferred income taxes are provided in full, using the liability method, for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income taxes are determined using tax rates that have been enacted or substantially enacted and are expected to apply when the related deferred income tax asset is realised or the related deferred income tax liability is settled. The principal temporary differences arise from depreciation or amortisation charged on assets and tax losses carried forward. Deferred tax assets relating to the carry forward of unused tax losses are recognised to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilised.

1.14 Receivables

Receivables are carried at original invoice amount less provision made for impairment of these receivables. A provision for impairment of receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the assets' carrying amount and the recoverable amount. Provisions for impairment of receivables are included in the statement of comprehensive income.

1.15 Payables

Payables are recognised initially at fair values and subsequently measured at amortised cost using the effective interest method.

1.16 Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the increase of new shares or options are shown in equity as a deduction from the proceeds.

1.17 Critical accounting judgements and estimates

The preparation of financial statements in conformity with International Financial Reporting Standards requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, actual results ultimately may differ from those estimates. IFRS also require management to exercise its judgement in the process of applying the Group's accounting policies. The prime areas involving a higher degree of judgement or complexity, where assumptions and estimates are significant to the financial statements, are as follows:

Impairment of exploration and evaluation of assets

The Group determines whether exploration and evaluation assets are impaired when facts and circumstances suggest that the carrying amount may exceed its recoverable amount. Such indicators include the point at which a determination is made as to whether or not commercial reserves exist. The carrying amount of exploration and evaluation assets at 30 June 2015 is included in note 9 to the financial statements.

Share based payments

The Group measures the cost of equity settled transactions by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined using a Black-Scholes model. Refer to Note 16 for variables entered into the model. 

2. Segmental reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision‑maker. The chief operating decision‑maker, who is responsible for allocating resources and assessing performance of the operating segment and that make strategic decisions, has been identified as the Board of Directors.

The Group had no operating revenue during the period.

The Group operates in one segment, the exploration and evaluation of uranium. The Parent Company operates a head office based in the United Kingdom which incurred certain administration and corporate costs. The Group's operations span two countries, Tanzania and the United Kingdom.

The Group's depreciation, amortisation and capital expenditure is incurred entirely within the Tanzanian segment.

3. Group operating loss

4. Interest

5. Taxation

At the year-end date, the Group has unused tax losses of US$6,136,000 (2014: US$5,842,000) available for offset against suitable future profits. A deferred tax asset has not been recognised in respect of such losses due to the uncertainty of future profit streams. The deferred tax asset at 20% (2014: 20%) is estimated to be US$1,227,000 (2014: US$ 1,168,000).

6. Loss per share

The basic loss per ordinary share is 0.05 cents (2014: 0.05 cents) and has been calculated using the loss for the financial year of US$393,000 (2014: loss US$ 387,000) and the weighted average number of ordinary shares in issue of 746,790,767 (2014: 745,493,750).

The diluted loss per share has been kept the same as the basic loss per share as the conversion of share options decreases the basic loss per share, thus being anti-dilutive. Details of potentially diluted shares are discussed in notes 15, 16.

7. Holding company profit and loss account

In accordance with the provisions of the Section 408 of the Companies Act 2006, the Parent Company has not presented a statement of comprehensive income. A profit for the year ended 30 June 2015 of US$619,000 (2014: loss US$1,781,000) has been included in the consolidated statement of comprehensive income.

8. Staff costs (including Directors)

Key management of the Group are considered to be the Directors of the Company and their accrued remuneration was as follows:

1During the period 25% (2014: 25%) of Alex Gostevskikh's salary was capitalised to intangibles. In 2015 this amounted to US$28,359 (2014: US$50,612), and is included in the amount disclosed above.

9. Exploration and evaluation assets

The Group's intangible asset consists entirely of capitalised exploration and evaluation expenditure. The exploration and evaluation ("E&E") asset represents costs incurred in relation to the Group's Tanzanian licences. These amounts have not been written off to the statement of comprehensive income as exploration expenses because commercial reserves have not yet been established nor has the determination process been completed.

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 an impairment. The total impairment charge for the period is US$Nil (30 June 2014: US$18,205). The remaining carried value relates entirely to the Company's flagship project Mtonya.

The outcome of ongoing exploration and evaluation, and therefore whether the carrying value of E&E assets will ultimately be recovered, is inherently uncertain. The Directors have assessed the value of the remaining uranium exploration and evaluation expenditure and, in their opinion, no further impairment is necessary. This assessment includes a review of the expiry dates of licenses and the likelihood of their renewal.

10. Investments in subsidiary undertakings

The loans due from subsidiaries are denominated in US$ and are repayable to the Company in more than one year with no fixed repayment terms.

The Company's subsidiary undertakings as at 30 June 2015 were as follows:

The Directors have assessed the carrying value of the investments in subsidiaries, all of which are incorporated in Tanzania, and in their opinion no impairment provision is considered necessary at the year end. This is however subject to the risks and uncertainties as set out in the Strategic Report.

11. Receivables

13. Borrowings -current

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 and was originally repayable on 15 September 2014. The Loan bears interest at LIBOR. On 10 September 2014, the Company entered into a supplementary agreement which extended the US$1 million loan facility agreement until 1 July 2015. On 1 July 2015, the Company entered into a further supplementary agreement which extended the US$1 million loan facility agreement until 31 December 2015. Thereafter the loan agreement was extended until 31 March 2016 by a supplementary agreement dated 9 November 2015.

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, which is unsecured, was originally repayable on 17 September 2015 and bears interest at LIBOR. The facility was available until 1 January 2015. At 31 March 2015, the Company had drawn down US$290,000 against the available facility. On 15 July 2015, the Company entered into a supplementary agreement which extended this loan facility agreement until 31 December 2015. Thereafter the loan agreement was extended until 31 March 2016 by a supplementary agreement dated 9 November 2015.

14. Borrowings - non-current

On 19 February 2015, the Company entered into a US$200,000 loan facility agreement with its major shareholder and strategic investor Estes Limited. The Loan, which is unsecured, is repayable on 18 August 2016 and bears interest at LIBOR. The facility is available until 1 January 2016. On 20 July 2015, the Company entered into a supplementary agreement which increased the total principle amount of the loan facility agreement from US$200,000 to US$250,000.

15. Share capital and share options

Issue of Equity

On 22 May 2015, the Company issued a total of 12,138,745 new ordinary shares of 0.1p each at a price of 0.432p per share, which represented a 10% discount to the mid-market closing price on 15 May 2015. The Company does not hold any ordinary shares in treasury. Therefore, the total number of ordinary shares with voting rights is 757,632,495 (2014 - 745,493,750 ).

New ordinary shares were issued to the following parties:

- 3,663,514 to a former adviser of the Company in lieu of fees; and

- 8,475,231 to a former director of the Company in lieu of emoluments.

The new ordinary shares rank pari passu with the old ordinary shares in the Company.

16. Share-based payments

Details of the Company's share options at 30 June 2015 are as follows

Number of options

Options outstanding at 30 June 2014:

Options outstanding at 30 June 2015:

As a result of resigning on the 27 October 2014, all share options owned by Ross Warner (5,000,000 share options exercisable at 2.5p on or before 30 November 2016 and 5,000,000 share options exercisable at 5p on or before 30 November 2016) were cancelled.

As part of the repricing of options made on 18 May 2015, the Company cancelled a total of 10,000,000 share options owned by James Pratt (5,000,000 share options exercisable at 2.5p on or before 30 November 2016 and 5,000,000 share options exercisable at 5p on or before 30 November 2016) and granted a total of 10,000,000 share options to Mark Purits, the Non - Executive Chairman of the Company, appointed 6 March 2015.

All of the unexpired options were modified as part of the repricing exercise carried out on 18 May 2015 in order to bring the strike price of the share options more in line with the current market price of the Company's shares and to deliver a viable incentive and reward package to the Directors of the Company.

On 30 June 2015, the Company had 48,000,000 share options with exercise prices of 0.7p, 1.5p, 3.0p. The details of FV calculations of the options are as follows:

Expected volatility was determined by calculating the historical volatility of the Group's share price for the past four years. The share option charge was calculated using the Black-Scholes model.

As a result of repricing, a share option expense of US$ 47,080 was recognised and is included within retained losses at the year end.

The Company's share price ranged between 0.35p and 0.90p (2014: 0.68p and 1.45p) during the year. The closing share price as at 30 June 2015 was 0.60p (2014: 0.90p).

17. Decommissioning expenditure

The Directors have considered the need for any necessary provision for the cost of rectifying any environmental damage, as might be required under local legislation and the Group's licence obligations. In their view, no provision is necessary at 30 June 2015, for any future costs of decommissioning or any environmental damage.

18. Financial instruments

Interest rate risk

The Company's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates on classes of financial assets and financial liabilities, was as follows:

The effective weighted average interest rate was 0.63% (2014: 0.63%) on financial liabilities.

The net fair value of financial assets and financial liabilities approximates to their carrying amount as disclosed in the statement of financial position and in the related notes.

Currency risk

The functional currency for the Group's operating activities is the British Pound and for drilling activities the US Dollar. The Group's objective in managing currency exposures arising from its net investment overseas is to maintain a low level of borrowings. The Group has not hedged against currency depreciation but continues to keep the matter under review. At 30 June 2015, the Group held the following US Dollar equivalent:

Financial risk management

The Directors recognise that this is an area in which they may need to develop specific policies should the

Group become exposed to further financial risks as the business develops.

Capital risk management

The Group considers capital to be its equity reserves. At the current stage of the Group's life cycle, the Group's

objective in managing its capital is to ensure funds raised meet the exploration expenditure commitments.

The Group ensures it is meeting its objectives by reviewing its KPIs to ensure its exploration activities are progressing in line with expectations, controlling costs and placing unused funds on deposit to conserve resources and increase returns on surplus cash held.

19. Events after the year end date

On 1 July 2015, the Company entered into a further supplementary agreement which extended the US$1 million loan facility agreement until 31 December 2015. Thereafter the loan agreement was extended until 31 March 2016 by a supplementary agreement dated 9 November 2015.

On 15 July 2015, the Company entered into a supplementary agreement which extended the repayment date of the US$300,000 loan facility agreement until 31 December 2015. Thereafter the loan agreement was extended until 31 March 2016 by a supplementary agreement dated 9 November 2015.

On 20 July 2015, the Company entered into a supplementary agreement which increased the total principle amount of the loan facility agreement from US$200,000 to US$250,000.

20. Related party transactions

Key management of the Group are considered to be the Directors of the Company. There are no transactions with the Directors other than the above, and their remuneration and interests in shares and share options. The remuneration of individual Directors is shown in the Directors' Report.

Estes Limited, the Company's ultimate controlling party, provided an additional loan facility during the period. As at 30 June 2015, the outstanding balance and the maximum outstanding during the year was US$1,416,000 (2014: US$1,102,000). During the year, interest of US$8,284 was charged. Further details of the loan facility are included in note 13 and 14 to the financial statements.

21. Future exploration expenditure

Other than annual tenement rentals totalling approximately US$100,000 per annum, the Group does not have any contractual commitments required to maintain the Group's licences. At 30 June 2015, the Group has outstanding commitments of approximately US$100,000 relating to its Tanzanian exploration activities.

22. Ultimate controlling party

As at 30 June 2015, the Company's ultimate controlling party is Estes Limited which owns 55.1% of the

Company's issued share capital. Details of transactions with Estes are included in note 20.