30th Sep 2014 14:02
LONDON (Alliance News) - URU Metals Ltd Tuesday said its loss narrowed significantly in its last financial year as it cut administrative expenses and after the previous year's result was hit by a USD2.4 million impairment of a jointly controlled asset.
The uranium and nickel asset developer reported a pretax loss from continuing operations of USD388,000 for the year to end-March, compared with the USD4.2 million loss it reported for the previous year. It isn't currently earning any revenue, but administrative expenses fell to USD658,000, from USD1.7 million.
URU has been going through a portfolio revamp, selling its stake in Argentina-based private uranium explorer UrAmerica, buying Swedish assets, closing its Niger operations, and buying prospecting rights in South Africa, although this has hit issues which led to the impairment. It also bought an option to earn a stake in a uranium-gold project in Canada.
It said it remains committed to acquiring mineral assets, while consolidating its current portfolio.
"A review by your management team has led to the belief that investments in the uranium sector will be lucrative to investors in the short to medium term, as the future primary uranium market is clearly undersupplied, requiring significant increases in uranium prices to stimulate miners and explorers to make the necessary investments to meet future uranium demand," it said.
URU Metals shares were down 4.9% at 1.64 pence Tuesday afternoon.
By Steve McGrath; [email protected]; @stevemcgrath1
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