Uranium Resources Plc Regulatory News (URA)

31 Mar 2006 07:00

Uranium Resources PLC30 March 2006 URANIUM RESOURCES PLC INTERIM STATEMENT SIX MONTHS TO 31 DECEMBER 2005 URANIUM RESOURCES PLC CHAIRMAN'S STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2005 I am pleased to announce that we are progressing activities at UraniumResources, which was established to acquire and invest in uranium projects withkey focus on known deposits predominately in Southern Africa and Australia. During the period we completed the acquisition of Deep Yellow Tanzania Limited,the owner of four uranium prospecting licences in Tanzania. These licences,covering approximately 2,500 sq. km., represent one of the largest uraniumexploration land packages in Tanzania. Three are located in the Mkuju River areain Southern Tanzania, whilst the fourth, the Makutapora Prospect, is in centralTanzania. Previous exploration in the late 1970's and early 1980's indentifiedthe licences as highly prospective for uranium. Our consultants, Drake-Brockman Geoinfo Pty Ltd have commenced an extensiveevaluation programme, primarily reviewing historical literature and radiometricdata, in order to formulate a detailed exploration programme. This involves theevaluation of existing geological and geophysical information includinggeosurvey radiometric maps, Landsat images, and basic topographical information. Adverse weather conditions forced the postponement of the aircraft-borne Hymapsurvey. The next phase of exploration for the company will be an on-groundreconnaissance programme by our consultants commencing in April 2006. This workwill lay the foundation for a full exploration programme in the coming dryseason. As stated previously we are looking to make investments in assets with aninitial goal of acquiring up to 100 million lbs of in-ground uranium. An equityinterest in a proposed investment can range from a minority position to 100%ownership with investments that may either be quoted or unquoted and may be incompanies, partnerships, joint ventures or direct interests in mining projects.However, the primary objective is to place the Company in a position to takeadvantage of the re-organising of the energy production market and theincreasing need for nuclear energy. Accordingly, we are currently evaluating anumber of significant projects which we believe will help us in achieving theaforementioned objectives. We have in place what we feel is a strong team to manage and grow our portfolio.We also employ consultants on a project basis to maintain a tight budget andensure that we look after shareholder value. We remain an early-stage company,and are busy identifying and evaluating assets to bring into our portfolio.Being at the development stage we are not producing revenue and as such we arereporting a pre-tax loss for the six months of £163,865 after provision foramortisation of goodwill. We believe there is much opportunity for us, especially with nuclear energybeing the only base-load power source that does not produce significantgreenhouse gases, and remain committed to building a portfolio of uranium assetsin order to create shareholder value. David SteinepreisChairman 30 March 2006 URANIUM RESOURCES PLC CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE SIX MONTHS ENDED 31 DECEMBER 2005 31 December 2005 (Unaudited) Notes £ Turnover - Cost of Sales - Gross Profit - Administrative expenses (167,367) Loss on ordinary activities before interest and amortisation of goodwill (167,367) Amortisation of goodwill 6 (10,208) Loss on ordinary activities before interest (177,575) Interest receivable 13,710 Loss on ordinary activities before taxation (163,865) Taxation 3 - Loss on ordinary activities after taxation (163,865) Dividends - Retained loss for the period (163,865) Loss per ordinary share: 4 Basic - after provision for amortisation of goodwill 0.079p Adjusted - before provision for amortisation of goodwill 0.073p URANIUM RESOURCES PLC CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2005 31 December 2005 (Unaudited) Notes £ £ Fixed Assets Intangible assets 6 339,791 Tangible assets 7 - 339,791 Current Assets Debtors 1 Cash at bank and in hand 800,232 800,233 Creditors: amounts falling due within one year - Net Current Assets 800,233 Net Assets 1,140,024 Capital and Reserves Called up share capital 8 211,000 Share Premium Account 9 1,239,000 Profit & Loss Account 9 (309,976) Shareholders' Funds 10 1,140,024 URANIUM RESOURCES PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2005 31 December 2005 (Unaudited) Notes £ £ Net cash outflow from operating activities 12 (162,775) Returns on investments and servicing of finance Investment income 13,710 Acquisitions and disposals Acquisition of a subsidiary undertaking 5 (50,000) Net cash outflow from acquisitions and disposals (50,000) Net cash outflow before financing (199,065) Financing Proceeds from issue of shares - Net cash inflow from financing - Decrease in cash 11 (199,065) URANIUM RESOURCES PLC NOTES TO THE FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2005 1: Basis of preparation This interim financial information has been prepared in accordance with the historical cost convention, in accordance with applicable accounting standards, and on the basis of a going concern. It has also been prepaared pursuant to AIM rule 18 and represents the half-yearly report for the six months then ended. AIM rule 18 states: "An AIM company must prepare a half-yearly report in respect of the six months period from the end of the period for which financial information has been disclosed in its admission document and at least every subsequent six months thereafter (apart from the final period of six months preceding its accounting reference date forits audited accounts. The previous half yearly report prepared by the Company covered the period ended 31 July 2005. As the Company's accounting reference date is 30 June, its first statutory accounts will be for the period ending 30 June 2006. This interim financial information therefore needs to reflect the six month period to 31 December 2005. Accordingly, the figures for the month of July 2005 will have been incorporated into this interim financial information as well as the previous half-yearly report to 31 July 2005. The results for the six months ended 31 December 2005 are unaudited and do not constitute statutory accounts as defined in section 240 of the Companies Act 1985. 2: Basis of consolidation The consolidated accounts incorporate the accounts of the Company and its subsidiary undertaking and have been prepared by using the principles of acquisition accounting, under which the results of the subsidiary are included from its date of acquisition. Intra-group sales, profits and balances are eliminated fully on consolidation. 3: Taxation No liability to UK or overseas taxation has arisen during the period and no provision for deferred tax is considered necessary. 4: Loss per ordinary share The basic loss per ordinary share has been calculated using the loss for the six months of £163,865 (after provision for amortisation of goodwill) and the weighted average number of ordinary shares in issue of 208,475,410. 5: Subsidiary company During the period the Company acquired 100% of the issued share capital of Deep Yellow Tanzania Limited ("DYT") a company incorporated in Tanzania. The "fair value" consideration paid was £350,000 comprising: £ Issue of 6,000,000 Ordinary shares at 5p each 300,000 Cash 50,000 350,000 The aggregate net assets of DYT as at the date of acquisition were as follows: £ Prospecting licences - Debtors 1 Net assets acquired 1 Positive goodwill 349,999 Consideration 350,000 6: Intangible Assets Goodwill arising on acquisitions is capitalised and classified as an asset on the balance sheet and amortised on a straight line basis over the directors' estimate of its expected useful economic life of 10 years. It is reviewed for impairment at the end of each full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill arising on subsidiary undertaking £ Cost As at 1 July 2005 - Additions 349,999 Disposals - As at 31 December 2005 349,999 Depreciation As at 1 July 2005 - Amortisation 10,208 Disposals - As at 31 December 2005 10,208 Net Book Value As at 1 July 2005 - As at 31 December 2005 339,791 7: Tangible Fixed Assets £ Cost As at 1 July 2005 1,205 Additions - Disposals (1,205) As at 31 December 2005 - Depreciation As at 1 July 2005 - Provision during the period - Disposals - As at 31 December 2005 - Net Book Value As at 1 July 2005 1,205 As at 31 December 2005 - 8: Share capital 31 December 2005 Authorised £ 10,000,000,000 ordinary shares of 0.1p each 10,000,000 Allotted, called up and fully paid 205,000,000 shares in issue at 1 July 2005 205,000 6,000,000 shares issued during the period on acquisition of subsidiary undertaking 6,000 211,000 9: Reserves Share Premium Profit & Loss £ £ At 1 July 2005 945,000 (146,111) Premium on shares issued on acquisition of subsidiary undertaking 294,000 - Retained loss for the period - (163,865) At 31 December 2005 1,239,000 (309,976) 10: Reconciliation of movements in shareholders' funds 31 December 2005 £ Opening shareholders' funds 1,003,889 Issue of shares during the period 300,000 Loss for the period (163,865) Closing shareholders' funds 1,140,024 11: Analysis of changes in net funds 31 December 2005 £ Cash at bank at 1 July 2005 999,297 Decrease in cash during the period (199,065) Cash at bank at 31 December 2005 800,232 12: Reconciliation of operating loss to net cash outflow from operations 31 December 2005 £ Loss on ordinary activities before interest (Operating Loss) (177,575) Amortisation of goodwill 10,208 Decrease in debtors 3,387 Loss on disposal of tangible fixed assets 1,205 Net cash outflow from operating activities (162,775) This information is provided by RNS The company news service from the London Stock Exchange