TIDMAURA
TO VIEW THE FULL HALF YEARLY REPORT AS A .PDF PLEASE VISIT THE COMPANY WEBSITE:
http://www.auraenergy.com.au/investor/ASX%20Announcements/2017/
Half%20Year%20Report%20December%202016.pdf
16 MARCH 2017
AURA ENERGY LIMITED
("Aura" or the "Company")
Half Yearly Report
Aura Energy Limited (ASX:AEE / AIM:AURA), the uranium development company
focused on developing projects in Africa and Europe towards production, has
released its Half Yearly report.
Principal activities
The principal activity of the Group is mineral exploration, primarily the
discovery and development of uranium deposits in Mauritania and Sweden.
Operating Results
The consolidated interim statement of profit or loss and other comprehensive
income shows a Loss after tax of $1,514,366 for the half-year ended 31 December
2016 (2015: $777,258), including one-off costs associated with the Alternative
Investment Market (AIM) admission of $683,121.
Review of operations
Aura is an Australian incorporated and listed entity with its Tiris Project
located in Mauritania and its Haggan Project located in Sweden. During the
Half-Year, Aura completed a successful listing on the Alternative Investment
market as well as an Australian Placement to raise $5 million and diversified
its portfolio with the acquisition of the Tasiast South gold prospects and the
application for Lithium and Soda Ash research permits.
With the funding from the AIM admission, the Company recommenced its
Feasibility Study (FS) activities on its Tiris uranium project in northern
Mauritania and began planning for further drilling activities at its Haggan
project in Sweden.
TIRIS PROJECT (Mauritania)
Aura re-commenced the feasibility study of its 100% owned 49 million pound U3O8
calcrete project in Mauritania (see Figure 1). The project has low operating
costs and low development capital with strong financial returns under long-term
pricing scenarios.
Tiris Project Studies
The Tiris FS restarted across many critical areas of the project during the
period. In general terms, the main areas remaining in the study are resource
upgrade and validation, leaching test work and process design, environmental
and social impact study and infrastructure.
During the Half-Year the main aspects of work were:
* Recruitment of a Study Manager who has developed projects in the relevant
regions of Africa
* Permanent appointment of Dr Will Goodall as Principal Metallurgist for the
Company
* Completion of a downhole logging survey as part of the resource validation
assessment
* Ultra-detailed ground radiometric surveying over the key resource zones to
establish more precisely the outlines of, and zonation within,
mineralisation across the major resources
* This ground radiometric survey work was continued over the Hippolyte South
prospect, currently under application, which hosts extensive and strong
radiometric anomalies south of the main Hippolyte resource. This will
define drill targets for future resource drilling on this very prospective
target
* Planning for continuation of previous metallurgical studies for leaching
and beneficiation
* Environmental and social impact assessment field work was undertaken with
consultants on all resource sites. Associated meetings with relevant
government officials have also taken place and are continuing
* The Terms of Reference for the Environmental and Social Impact Statement
was submitted to the government
* Water search consultants have commenced work which involves an initial
program of ground geophysics to select drill targets prior to drill testing
of these sites. The study will focus principally on the basal sedimentary
units of the Taoudeni Basin to the south of the project area. These are
known to host substantial water supplies elsewhere in the region. A few
favourable sites on Reguibat Shield rocks closer to the project site will
also be tested in this program
* Preparation of documents for the Mining Lease Application
* Two additional Exploration Permits were granted to Aura during the Half-
Year. One, Oum Ferkik South, covers the extension to the south of the
mineralised zone that contains Aura's Ferkik Resource. The other, Aguelet,
contains an Inferred Resource of 0.7 million lbs U3O8 at 240 ppm U3O8
AMARE LITHIUM AND SODA ASH PROJECT (Mauritania)
During the Half-Year, the Company announced that as part of a continual review
of mineral opportunities in Mauritania, it has taken a position in 2 large
Sabkhas (salt pans) in the region of its Tiris Uranium Project with a view to
exploring them for soda ash and other minerals.
Soda ash is the leach agent proposed for the Tiris project and if the source
were confirmed it would provide significant benefits to the project economics.
The Sabkhas which are 165 km from Hippolyte are large on a relative basis
covering an area of over 85 km2 (see Figure 2). Sabkha is an Arabic name for a
salt-flat that has come into general use in sedimentology. They are also known
as "Salars" in South America and generically as salt pans or flats. The
valuable salts can occur in the Sabkha environment either in clays at or near
surface or in brine reservoirs deeper in the lake sediments.
The location of the Sabkha between Aura's Tiris project East and West tenements
provide a favourable location should a source of soda ash (Na2CO3) be
identified.
Initial sampling of the Amare lithium and soda ash prospect was undertaken
during the Half-Year and assaying is underway.
Aura will continue to review other opportunities for similar mineral
occurrences throughout the local region given the favourable conditions for the
numerous Sabkhas close to its project areas.
TASIAST SOUTH GOLD PROJECT (Mauritania)
The Company announced on 27 June 2016 that it has secured rights to acquire 175
km2 covering two under-explored mineralised greenstone belts in Mauritania (see
Figure 3). The areas lie along strike from Kinross' giant Tasiast Gold Mine and
from Algold's Tijirit gold deposits. The two areas are currently held under
exploration permit applications and are expected to be granted in the near
future.
These highly prospective gold areas represent an excellent opportunity in
lightly explored Archean greenstone belts and will leverage Aura's extensive
operating experience in this part of the world. The project is favourably
located 200 km from Aura's Nouakchott office, 60 km from the coast, and can be
managed efficiently within the company's existing management resources without
distraction from Aura's core uranium focus.
Aura's Tasiast South Project area has the following attributes:
* Tenements over two lightly explored greenstone belts covering 175 km2.
* The +20 Moz Tasiast gold deposit is nearby on the same greenstone belt and
highlights the potential for major deposits in the region (see Figure 3).
* $3m has been expended by the previous explorer on airborne geophysics,
reverse circulation and air- core drilling, and sampling.
* Broad zones of gold mineralisation have been identified with strong
similarities to the Tasiast Gold Mine mineralisation and alteration.
* No testing deeper than 150m with most previous holes less than 100m.
* High grade drill intersections have been reported by others in the district
from both past and current programs, including one in progress with Algold
Resources (TSX), which highlight the current interest and potential in
these poorly tested belts.
Half-Year Aura continued to plan and assess the best approach to the
exploration of these tenements.
Nickel and base metal potential
Previous exploration for gold on these permit areas also located strongly
anomalous nickel values in several areas, associated with ultramafic rocks
(see Figure 4). In parts of the tenements high nickel values are associated
with anomalous copper highlighting potential for nickel-copper sulphide
mineralisation, as occurs also in the greenstone belts of Australia and Canada.
At this stage, there has been no follow-up work carried out on these nickel
targets.
Future work program and other opportunities
Next steps envisaged at Tasiast South are:
* Ground electrical geophysics to locate the strongest zones of disseminated
sulphide development for drill targeting.
* Additional bedrock sampling by air- core or auger-drilling to better define
the high nickel ultramafics and zones of copper/nickel for follow up
drilling.
* Deep drill testing (RC and DD) of targets defined.
Aura's timing for this work is dependent on granting of the permits and on
financing however some of the work described is relatively low cost and may be
funded from existing resources. Aura will also explore other financing options
to progress this work plan including joint ventures, royalties and
work-for-equity funding.
HAGGAN PROJECT (Sweden)
The Häggån project has an Inferred Resource of 803 million pounds of U3O8.
Scoping studies previously completed by Aura have indicated that the Häggån
Project has the potential be a very large low cost uranium producer.
Work continued regarding a community engagement for the Häggån Project.
The key aspects of the community liaison program are twofold:
* Recruitment of an appropriate representative and further the education and
understanding of Aura's project in those areas.
* Completion of an economic development study to outline the benefits of the
project in terms of direct and indirect jobs, capital outlay and broader
contribution to the local and regional economy.
Aura continues to press the Häggån project as a unique and strategic energy
source in Europe which the European nuclear energy sector is beginning to
realise can play an important role as a uranium source in the future.
The Company believes Häggån is a 5-7 year proposition as a development project
and is scoping its work program around that time frame.
A program of 750m of diamond drilling in 3 holes is programmed for the first
Quarter 2017 for geostatistical and resource upgrade purposes.
Uranium sector and price
The price of uranium has enjoyed improved sentiment and recovered from its
recent lows in the face of producer cutbacks. The current price series is as
follows:
* Spot Price - US$23.65/lb
* Mid Term - US$22.00/lb
* Long Term - US$30.00/lb
Key points of interest to note from the uranium sector have been:
* KazAtomProm stated it would cut output by 10%, equivalent to 2000t or 3 %
of global supply, because of low prices.
* The Trump presidency may result in a more pro-nuclear stance by the US and
policy shifts in the US under a new administration are likely to play an
important role in the nuclear industry over the next few years.
* Over the next 2-3 years, many of the long-term supply contracts will expire
requiring renegotiation at prices unlikely to be done at current midterm or
long-term pricing
A key point worth repeating and highlighting is the lack of term contracting in
2013 and 2014 as shown in the chart below. This remains a key risk for
utilities going forward and will need to be filled at some stage. This
contracting phase will strongly impact the Long-Term price as evidenced in the
chart below between 2004 and 2007.
CORPORATE
Mauritanides Conference - Mauritania
Aura Energy attended the Mauritanides conference in Nouakchott Mauritania in
October 2017. The government sponsored bi-annual conference is the key
resources conference in the country and is attended by the President, Prime
Minister and Mines Minister.
Key points of the conference and trip were:
* Excellent company meetings with the Mines Minister demonstrating strong
support for Aura's activities in the country.
* The depth of resource industry involvement in the country including
significant oil and gas activity.
* Recent success of Algold's gold exploration and its significance to Aura's
gold properties
Subsequent events
During the course of February 2017, the Company secured the support of a number
of option holders to advance its newly secured gold project in Mauritania. The
option holders exercised 72,642,413 options over ordinary shares at an exercise
price of 2.5 cents per option over ordinary share. The exercise of the options
over ordinary shares has provided the Company with $1,816,060 to dedicate to
the advancement of its gold projects and specifically, undertaking a detailed
drilling campaign.
Condensed consolidated interim statement of financial position
As at 31 December 2016
31 DEC 2016 31 DEC 2015
Note $ $
Assets
Current assets
Cash and cash equivalents 8 3,432,754 317,758
Trade and other receivables 9 74,351 57,708
Other 10 43,594 43,625
Total current assets 3,550,699 419,091
Non-current assets
Exploration and evaluation 11 14,160,331 14,137,710
Property, plant and equipment 20,808 -
Total non-current assets 14,181,139 14,137,710
Total assets 17,731,838 14,556,801
Liabilities
Current liabilities
Trade and other payables 12 372,358 550,844
Provisions 13 160,992 165,251
Total current liabilities 533,350 716,095
Total liabilities 533,350 716,095
Net assets 17,198,488 13,840,706
Equity
Issued and paid-up capital 14 37,750,260 32,784,203
Reserves 890,935 1,029,542
Accumulated losses (21,442,707) (19,973,039)
Total equity 17,198,488 13,840,706
Condensed consolidated interim statement of profit or loss and other
comprehensive income
For the six months ended 31 December 2016
6 MONTHS TO 6 MONTHS TO
NOTE '31 DEC '31 DEC
2016 2015
Finance income 1,784 2,970
Other income - -
Administrative expenses (324,543) (367,165)
Depreciation expense - (1,603)
Employee benefits expense (320,014) (379,803)
Exchange fluctuation (72,191) (614)
Finance costs - (5,008)
Listing costs on AIM market (683,121) -
Share-based payments (120,458) (145,293)
Other 4,177 (20,742)
Loss before tax (1,514,366) (917,258)
Income tax benefit - 140,000
Total profit/(loss) for the period after (1,514,366) (777,258)
tax
Other comprehensive income/(loss) (237,156) 204,758
Total comprehensive income/(loss) (1,751,522) (572,500)
attributable to members of Aura Energy
Limited
Earnings/(loss) per share attributable to
members of Aura Energy Limited
Basic earnings/(loss) per share (cents) (0.25) (0.21)
Diluted earnings/(loss) per share (cents) (0.25) (0.21)
Condensed consolidated interim statement of cash flows
For the six months ended 31 December 2016
NOTE 6 MONTHS TO 6 MONTHS TO
'31 DEC 2016 '31 DEC 2015
Cash flows from operating activities
Payments to suppliers and employees (1,533,891) (659,193)
Interest received 1,784 2,970
Interest and borrowing payments - (1,211)
Net cash from/ (used in) operating (1,532,107) (657,434)
activities
Cash flows from investing activities
Exploration and evaluation payments (253,339) (719,772)
Acquisition of property, plant and (20,808) -
equipment
Net cash from/ (used in) investing (274,147) (719,772)
activities
Cash flows from financing activities
Share issues 5,129,719 860,870
Equity raising costs (137,624) (52,343)
Repayment of borrowings - (8,656)
Net cash from/(used in) financing 4,992,095 799,871
activities
Net increase/(decrease) in cash and 3,185,841 (577,335)
cash equivalents
Cash and cash equivalents at beginning 317,758 943,011
of the period
Exchange fluctuation (70,845) (614)
Cash and cash equivalents at period 3,432,754 365,062
end
Condensed consolidated interim statement of changes in equity
For the six months ended 31 December 2016
SHARE SHARE-BASED OPTION-BASED TRANSLATION ACCUMULATED TOTAL
CAPITAL PAYMENTS PAYMENTS RESERVE LOSSES
RESERVE RESERVE
$ $ $ $ $ $
Balance at 1 31,311,988 - 398,924 502,328 (18,451,415) 13,761,825
July 2015
Share issues 957,376 - - - - 957,376
Equity raising (52,343) - - - - (52,343)
costs
Exercise of - - - - - -
options over
ordinary
shares
Vest of - - - - - -
options over
ordinary
shares
Transfer to - 34,253 - - - 34,253
share-based
payments
reserve
Transfer to - - 145,293 - - 145,293
option-based
payments
reserve
Loss after tax - - - - (777,258) (777,258)
for the period
Other - - - 204,758 - 204,758
comprehensive
income/(loss)
for the period
Balance at 31 32,217,021 34,253 544,217 707,086 (19,228,673) 14,273,904
December 2015
Balance at 1 32,784,203 - 495,651 533,891 (19,973,039) 13,840,706
July 2016
Share issues 5,157,183 - - - - 5,157,183
Equity raising (318,167) - - - - (318,167)
costs
Exercise of 127,041 - - - - 127,041
options over
ordinary
shares
Expiry of - - (44,698) - 44,698 -
options over
ordinary
shares
Vest of - - - - - -
options over
ordinary
shares
Transfer to - - - - - -
share-based
payments
reserve
Transfer to - - 143,247 - - 143,247
option-based
payments
reserve
Loss after tax - - - - (1,514,366) (1,514,36)
for the period
Other - - - (237,156) - (237,156)
comprehensive
income/(loss)
for the period
Balance at 31 37,750,260 - 594,200 296,735 (21,442,707) 17,198,488
December 2016
TO VIEW THE FULL HALF YEARLY REPORT AS A .PDF PLEASE VISIT THE COMPANY WEBSITE:
http://www.auraenergy.com.au/announcements-2017.html
ENDS
For more information please visit www.auraenergy.com.au or contact the
following:
Aura Energy Limited Telephone: +61 (3) 9516 6500
Peter Reeve (Executive Chairman) info@auraenergy.com.au
WH Ireland Limited Telephone: +44 (0) 207 220 1666
Adrian Hadden
James Bavister
Yellow Jersey PR Limited Telephone:
Felicity Winkles +44 (0) 7748 843 871
Joe Burgess +44 (0) 7769 325 254
Aura Energy is a dual-listed (ASX/AIM) uranium company focused on developing
projects in Africa and Europe towards production. The Company has 100%
ownership of a portfolio of prospective uranium projects.
Aura has a simple development approach as it looks to build itself into a
cash-generative uranium producer in the near to mid-term. Its immediate growth
strategy is focused on development of its 49Mlbs Tiris uranium project in
Mauritania ("Tiris"), a Feasibility Study of which is currently underway and
expected to be completed in late 2017, with mine construction following. The
Company is also advancing its longer-term 803Mlbs Häggån uranium project in
Sweden ("Häggån"). In addition, the Company is exploring opportunities in gold,
lithium and soda ash in Mauritania.
END
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