Uranium Resources Plc Regulatory News (URA)

30 Mar 2007 07:02

Uranium Resources PLC30 March 2007 30 March 2007 Uranium Resources plc ('Uranium Resources' or 'the Company') Interim Results Uranium Resources plc, the AIM listed uranium exploration and developmentcompany focused in Southern Africa, is pleased to announce its results for thesix month period ended 31 December 2006. The Directors are pleased to report onthe progress and the achievements made by your Company since the last report. The focus has primarily been on expanding and developing the Company's portfolioof 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 resultshave 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/June2007. 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 completingapproximately 10,000m this season. The drilling programme is being funded by itsfarm-in partners Western Metals Limited. Finally, being at the exploration stage we are not producing revenue and as suchI am reporting a pre-tax loss of £433,438, including a loss attributable toshare based payments of £258,000. Hugh WarnerDirector 30 March 2007 CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR 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 £ £ £ Group turnover - - - Cost of sales - - - Gross profit - - - Administrative expenses before amortisation of goodwill and charge for share basedpayments (169,618) (167,367) (421,437)Amortisation of goodwill 4 (17,500) (10,208) (27,708)Share based payments 7 (258,000) - (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) (0.079p) (0.24p)Diluted 3 (0.21p) (0.079p) (0.24p) There were no recognised gains or losses during the above periods except asstated in the profit and loss account and accordingly no statement of totalrecognised gains and losses has been prepared. CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2006 Unaudited Unaudited Audited 31 December 2006 31 December 2005 30 June 2006 Notes £ £ £Fixed assetsIntangible assets 4 400,087 339,791 363,470 Current assetsDebtors 15,802 1 2,182Cash at bank and in hand 484,448 800,232 618,354 500,250 800,233 620,536Creditors: amounts falling due within one year (54,013) - (12,489) Net current assets 446,237 800,233 608,047 Total assets less current liabilities 846,324 1,140,024 971,517 Provision for liabilities and charges 5 (24,000) - - Net assets 822,324 1,140,024 971,517 Capital and reservesCalled up share capital 6 211,000 211,000 211,000Share premium account 8 1,174,360 1,239,000 1,174,360Own 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 STATEMENTFOR 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 operatingactivities 10 (179,284) (162,775) (411,130) Returns on investments andservicing of financeInvestment income 11,680 13,710 35,302 (167,604) (149,065) (375,828) Capital expenditureInvesting in exploration 4 (16,547) - (41,178) Acquisitions and disposalsAcquisition of subsidiary - (50,000) (50,000) Net cash outflow beforefinancing (184,151) (199,065) (467,006) FinancingApplications for shares 50,245 - -Proceeds from share issues - - 1,150,000Share 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 historicalcost convention and in accordance with applicable accounting standards in theUnited Kingdom and the Statement of Recommended Practice "Accounting for Oil andGas Exploration, Development, Production and Decommissioning Activities". The financial information has been prepared on a going concern basis. TheGroup's ability to continue as a going concern is contingent upon raisingadditional funds to cover appraisal and development activities and workingcapital requirements. In the absence of being able to raise funds, the goingconcern basis may not be appropriate with the result that the Group may have torealise its assets and extinguish its liabilities other than in the ordinarycourse of business at amounts different from those stated in this interimreport. No allowance for such circumstances has been made in this interimreport as the directors believe that the Group will be able to raise furtherfunds in the future. The Company has raised £2,000,000 before expenses fromshare placing's after 31 December 2006 to provide additional working capital andfund its exploration projects. The results for the six months ended 31 December 2006 are unaudited and do notconstitute statutory accounts as defined in section 240 of the Companies Act1985. They have been prepared using accounting bases and policies consistentwith those used in the preparation of the financial statements of UraniumResources Plc for the eighteen months ended 30 June 2006. The comparative figures for the eighteen months ended 30 June 2006 are extractedfrom the statutory financial statements which have been filed with the Registrarof Companies and which contain an unqualified audit report and did not containstatements 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 noprovision for deferred tax was considered necessary. 3. Loss per ordinary share The basic and diluted loss per ordinary share have been calculated using theloss for the six months ended 31 December 2006 of £433,438 (six months to 31December 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 aweighted average number of ordinary shares in issue of 211,000,000 (six monthsto 31 December 2005 - 208,475,410; eighteen months ended 30 June 2006 -198,358,879). 4. Intangible assets The intangible assets can be summarised as follows: Exploration and appraisal expenditure Goodwill Total £ £ £ Cost At 1 July 2006 41,179 349,999 391,178Additions 54,117 - 54,117 At 31 December 2006 95,296 349,999 445,295AmortisationAt 1 July 2006 - (27,708) (27,708)Amortisation for the period - (17,500) (17,500) At 31 December 2006 - (45,208) (45,208) Net book valueAt 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 theCompany's subsidiary undertaking, Deep Yellow Tanzania Limited during the periodended 30 June 2006. Goodwill is being amortised over the Directors' estimate ofits useful economic life of 10 years until production commences. On commencementof production, goodwill will be amortised on a unit-of-production basis based onproven and probable reserves. In accordance with the accounting policies, the Directors haveassessed the value of the exploration and appraisal expenditure carried in theaccounts as intangible fixed assets. In the opinion of the Directors, noimpairment provision is considered necessary against the exploration andappraisal expenditure at 31 December 2006. 5. Provision of liabilities and charges Unaudited Unaudited Audited 31 December 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 hasbeen calculated by reference to the difference between the market value of theunderlying shares at the balance sheet date and the exercise price of the shareoptions, as required by Urgent Issues Task Force ("UITF") 25. 6. Share capital Unaudited Audited 31 December 30 June 2006 2006 £ £ Authorised10,000,000,000 ordinary shares of 0.1p each 10,000,000 10,000,000 Allotted, called up and fully paid211,000,000 ordinary shares of 0.1p each 211,000 211,000 The share capital and the share options at the beginning and the end of theperiod are summarised below: Number of shares Number of options At 1 July 2006 211,000,000 10,000,000Share 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 chargein the profit and loss accounts in respectof its share based payment plans: As required by Financial ReportingStandard ("FRS") 20 234,000 - -As required by UITF 25 (note 5) 24,000 - - 258,000 - - Share based payments (continued) These are based on the requirements of FRS 20 and UITF 25 on share basedpayments. For this purpose, the weighted average estimated fair value for theshare options granted was calculated using a Black-Scholes option pricing model.The volatility measured at the standard deviation of expected share price returnis based on statistical analysis of the share price over the 6 month period to31 December 2006 and this has been calculated at 27.5%. The risk free rate hasbeen taken as 5%. The estimated fair values and other details which have beenprocessed 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 28/11/2006 5p 0.41p 28/11/2011 30,000,000 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 prospectiveshareholders of the Company for which shares were allotted after the balancesheet 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 1,385,360Share-based payments (note 7) 234,000 - 66,667 (149,193) 136,135 971,517Opening 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 operatingactivities 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 - 12,489Loss on disposal of fixed assets - 1,205 -Share based payments charge 258,000 - 66,667 Net cash outflow from operatingactivities (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 2007to 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 769James Pratt Uranium Resources Plc Tel: 07747 832 043Hugh Warner Uranium Resources Plc Tel: +618 9388 3006Hugh Oram Nabarro Wells & Co. Limited Tel: 020 7710 7400Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477Felicity Edwards St Brides Media & Finance Ltd Tel: 020 7242 4477 This information is provided by RNS The company news service from the London Stock Exchange