5th Oct 2006 18:35
Uranium Resources PLC05 October 2006 Uranium Resources plc ("URA" or "the Company") Audited Results Set out below are the audited financial results for URA for the period fromincorporation on 11 January 2005 to 30 June 2006. EXECUTIVE DIRECTOR'S STATEMENT It gives me great pleasure to report on the progress Uranium Resources Plc ("Uranium" or "the Company") has made during the period under review. It is theCompany's strategy to acquire, invest and develop uranium projects with the keyfocus on known deposits predominantly in Southern Africa and Australia and Ifeel we have made steady progress in fulfilling these objectives. In line with the Board's expectations, the Group is reporting a pre-tax loss forthe period ended 30 June 2006 of £480,510. We are a development company and assuch not currently producing revenue. We are keeping a tight rein on costs andare well capitalised with a cash position of £618,354 at 30 June 2006. The most prominent corporate action during the reporting period occurred inSeptember 2005, when we acquired four uranium prospecting licences in Tanzaniafor £350,000, following the purchase of Deep Yellow Tanzania Ltd. Theconsideration comprised of £50,000 in cash and the issue of 6,000,000 ordinaryshares at 5p per share. The licences, covering an area of approximately 3,800 sqkm, represent one of the largest uranium exploration land packages in Tanzania. Three of the licences are located in the Mkuju River area in southern Tanzania,an area recognised as being one of the country's most highly prospective uraniumtargets. The licences, originally identified by the German companyUranerzbergbau GmbH ('Uranerz') during reconnaissance exploration between 1978and 1982, will make the Company the largest land holder in the Mkuju Riverregion. The Company has since been granted a fifth licence, the Ruhuhu licence,to the southeast of the existing Mkuju River licences. The Ruhuhu licencecontains a number of high level airborne radiometric anomalies which the Companywill assess during the current field programme. In April 2006 we signed a farm in agreement with Australian Stock Exchangelisted Western Metals Limited ('WMT'). Under the agreement WMT has theopportunity to earn a 40% interest in our Tanzanian prospecting licences byspending AUD$2 million on the licences on or before the second anniversary ofthe agreement becoming unconditional. WMT may increase its interest to 60% byspending a further AUD$2 million within a further two years. WMT must spendAUD$500,000 within 12 months of the completion of the agreement. In April 2006 the team delineated five areas in the licences worthy of animmediate reconnaissance field trip. In May 2006 we announced positive resultsfrom a short reconnaissance field trip in the Mtonya group of tenements in thesouthern part of Tanzania, which revealed outcropping uranium mineralisationwith a peak assay result of 975ppm (0.098%) U3O8. This programme was managed by Drake-Brockman Geoinfo Pty Ltd, the operatingcompany of Dr Joseph Drake-Brockman, who was appointed in September 2005. DrJoseph Drake-Brockman has worked in uranium exploration for 20 years mainly inAustralia and Tanzania. Drake-Brockman Geoinfo Pty Ltd conducted a further field work programme at theMtonya group of tenements in August. The first phase of the field work consistsof radiometric traverses to confirm the size, continuity and magnitude of theairborne anomalies, sampling of hotspots to verify uranium mineralisation,trenching of mineralised zones to estimate thickness and orientation andgeological mapping of trenches and outcrops to establish the parameterscontrolling the mineralisation. Results from this programme are expected to beavailable shortly. Assuming positive results, the Company will plan a drillingprogramme to commence as soon as practicable. Key to our strategy is a strong management team and Board that possess theskills to identify, acquire, finance and develop a portfolio of uranium assets.Post year end we appointed James Pratt to the Board as a non-executive Director.He replaced Leon Pretorius who stepped down due to other business commitments.James has over 18 years experience in the mining and exploration industry,primarily in Australia and Africa, and also has extensive corporate experiencethrough his involvement in a number of companies listed on the ASX and AIMmarkets. With today's high commodity prices and fluctuating markets there is a great casefor seeking alternative energy sources, and the international energy arena isproviding a platform for these new energy ventures to occur. Although UraniumResources is still in the early stage of development, we feel that there isgreat opportunity for it not only to become a significant player in the uraniummarket but also for nuclear energy to become a preferential energy choice, beingone of the only base-load power sources that does not produce greenhouse gases. We are confident that we have the team in place to achieve our objectives andremain focussed on creating shareholder value. Finally I would like to thank allthose involved with the Company for their hard work and I look forward to thefuture with confidence. Ross WarnerDirector 5 October 2006 CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE PERIOD FROM INCORPORATION ON 11 JANUARY 2005 TO 30 JUNE 2006 Notes £ 2006 £ Group turnover 2 - Cost of sales - _________ Gross profit - Administrative expensesAdministrative expenses beforeamortisation of goodwill (488,104) Amortisation of goodwill (27,708) (515,812) Group operating loss - continuing (515,812) Interest receivable 35,302 Loss on ordinary activitiesbefore taxation (480,510) Taxation 4 - Loss on ordinary activitiesafter taxation (480,510) Loss for the period (480,510) Dividends - Retained loss for the period (480,510) Loss per shareBasic 3 (0.24)p CONSOLIDATED BALANCE SHEETAS AT 30 JUNE 2006 Notes £ 2006 £Fixed assets Intangible assets 5 363,470 Current assetsDebtors 2,182Cash at bank and in hand 618,354 620,536 Creditors: Amounts falling dueWithin one year (12,489) Net current assets 608,047 Net assets 971,517 Capital and reservesCalled up share capital 6 211,000Share premium account 7 1,174,360Profit and loss account 7 (413,843) Shareholders' funds 8 971,517 CONSOLIDATED CASH FLOW STATEMENTFOR THE PERIOD FROM INCORPORATION ON 11 JANUARY 2005 TO 30 JUNE 2006 Notes £ 2006 £ Net cash outflow fromoperating activities 9 (411,130) Returns on investments andServicing of financeInterest received 35,302 (375,828)Acquisitions and disposalsNet funds used for investing in exploration (41,179)Acquisition of a subsidiary undertaking (50,000)Cash acquired with a subsidiary undertaking 1 Net cash outflow from acquisitions (91,178) Net cash outflow before financing (467,006) Financing Proceeds from issue of share 1,150,000Issue costs (64,640) Cash inflow from financing 1,085,360 Increase in cash 11 618,354 NOTES TO THE FINANCIAL INFORMATIONFOR THE PERIOD FROM INCORPORATION ON 11 JANUARY 2005 TO 30 JUNE 2006 1. Basis of preparation The accounts are prepared in accordance with the historical cost convention andin accordance with applicable accounting standards and the Statement ofRecommended Practice "Accounting for Oil and Gas Exploration, Development,Production and Decommissioning Activities". The financial information contained in this report does not constitute fullstatutory accounts within the meaning of Section 240 of the Companies Act 1985.The figures are extracted from the audited full financial statements for theperiod ended 30 June 2006 which will be filed with the Registrar of Companies indue course. 2. Turnover At the end of the financial year, the Group had not commenced commercialproduction from its exploration sites and therefore had no turnover in theperiod. 3. Earnings per share The loss per ordinary share of 0.24p is based on the loss for the financialperiod of £480,510 and 198,358,879 ordinary shares, being the average number ofshares in issue for the period. No diluted loss per ordinary share has been disclosed because the conversion ofshare options would decrease the net loss per share. 4. Taxation Group 2006 £ Current TaxUK corporation tax on profits for the period -Adjustments for previous periods - ________ Total current tax charge - ======= Factors affecting tax charge for periodLoss on ordinary activities before tax (480,510) Tax on loss on ordinary activities at thestandard rate of UK corporation tax of 30% (144,153) Effects of:Expenses not deductible for tax purposes 21,198Depreciation 8,312Tax losses 114,643 ________ Total current tax charge - ======= 5. Intangible assets The movements during the period were as follows: Exploration and Goodwill Total appraisal expenditure £ £ £CostAdditions 41,179 349,999 391,178 At 30 June 2006 41,179 349,999 391,178 AmortisationAmortisation for the period - (27,708) (27,708) At 30 June 2006 41,179 322,291 363,470 Net book valueAt 30 June 2006 41,179 322,291 363,470 The goodwill of £349,999 arose on the acquisition of the Company's subsidiaryundertaking, Deep Yellow Tanzania Limited during the period. Goodwill is beingamortised over the Directors' estimate of its useful economic life of 10 yearsuntil the production commences. On commencement of production, it will beamortised on a unit of production basis based on proven and probable reserves. In accordance with the accounting policy, 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. 6. Share Capital Group and Company 2006 £Authorised10,000,000,000 ordinary shares of 0.1p each 10,000,000 Allotted, called up and fully paidOrdinary shares of 0.1p each100,000,000 shares issued to founder members 100,000105,000,000 shares issued on placement 105,0006,000,000 shares issued on acquisition of Deep Yellow Tanzania Limited 6,000 As at 30 June 2006 211,000 The Company was incorporated on 11 January 2005 with an authorised share capitalof £10,000,000 divided into 10,000,000,000 ordinary shares of 0.1 p each, ofwhich 2 shares were issued fully paid, on incorporation. On 27 January 2005 the founders subscribed for an aggregate of 99,999,998ordinary shares, all at par value to raise £99,999.99. On 15 February 2005, 105,000,000 ordinary shares were issued at 1.0p each forcash In addition, on 15 September 2005, the Company issued 6,000,000 ordinary sharesat 5.0p each in connection with the acquisition of Deep Yellow Tanzania Limited. The movements in the share capital are summarised below: Number of Shares Issue for cash - founder members 100,000,000Issue for cash - placement 105,000,000Shares issued on acquisition of Deep Yellow Tanzania Limited 6,000,000 At 30 June 2006 211,000,000 The share premiums arising as a result of above transactions are as follows: 2006 £ Issue of shares for cash - placement 945,000Issue of shares on acquisition of Deep Yellow Tanzania Limited 294,000 1,239,000 7. Statement of movements on reserves Movements in the share premium and profit and loss account during the periodwere as follows: Share Profit Premium and loss £ £Group Issue of shares (note 6) 1,239,000 -Issue costs (64,640) -Retained losses - (480,510)Share options reserve (UITF 17) 66,667 At 30 June 2006 1,174,350 (413,843) Share Profit premium and lossCompany £ £ Issue of shares (note 6) 1,239,000 -Issue costs (64,640) -Retained loss for the period - (452,802)Share options reserve (UITF 17) - 66,667 At 30 June 2006 1,174,360 (386,135) The share options reserve of £66,667 has been calculated in accordance with UITF17. As the share options were cancelled after the year end when the directorleft the employment of the Company, the related credit has been taken to profitand loss reserve. 8. Reconciliation of movements in shareholders' funds - equity only 2006 Group Company £ £ Loss for the period (480,510) (452,802)Dividends - - (480,510) (452,802) Share issues less costs 1,385,360 1,385,360Share options reserve (UITF17) 66,667 66,667 Closing shareholders' funds 971,517 999,225 9. Reconciliation of operating loss to net cash inflow from operatingactivities 2006 £ Group operating loss (515,812)Amortisation of goodwill 27,708Increase in debtors (2,182)Increase in creditors 12,489Share options charge (UITF17) 66,667Net cash outflow from operating activities (411,130) 10. Analysis of changes in net funds Cashflows 2006 £ £ Cash at bank and in hand 618,354 618,354 11. Reconciliation of net cash flow to movement in net funds 2006 £ Increase in cash 618,354 Movement in net funds 618,354 Net funds at 30 June 2006 618,354 12. Availability of Accounts The financial information set out above does not constitute the Company'sstatutory accounts for the period from Incorporation on 11 January 2005 to 30June 2006, but is derived from those accounts. Statutory accounts for theperiod have been delivered to the Registrar of Companies. Copies of the accounts will be posted to shareholders in due course and willalso be available free of charge for collection at the following address: 30 Farringdon StreetLondonEC4A 4HJ -End- Contact: Ross Warner Uranium Resources plc Tel: 07760 487 769 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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