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
|
Note |
31 DEC
2016
$ |
31 DEC
2015
$ |
|
|
|
|
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
|
NOTE |
6 MONTHS TO ‘31 DEC
2016 |
6
MONTHS TO
‘31 DEC 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 tax |
|
(1,514,366) |
(777,258) |
|
|
|
|
Other comprehensive
income/(loss) |
|
(237,156) |
204,758 |
Total
comprehensive income/(loss) attributable to
members of Aura Energy Limited |
|
(1,751,522) |
(572,500) |
|
|
|
|
|
|
|
|
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 ‘31 DEC
2016 |
6
MONTHS TO
‘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 activities |
|
(1,532,107) |
(657,434) |
|
|
|
|
Cash flows from
investing activities |
|
|
|
Exploration and
evaluation payments |
|
(253,339) |
(719,772) |
Acquisition of
property, plant and equipment |
|
(20,808) |
- |
Net cash from/
(used in) investing activities |
|
(274,147) |
(719,772) |
|
|
|
|
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 activities |
|
4,992,095 |
799,871 |
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents |
|
3,185,841 |
(577,335) |
Cash and cash
equivalents at beginning of the period |
|
317,758 |
943,011 |
Exchange
fluctuation |
|
(70,845) |
(614) |
Cash and cash
equivalents at period end |
|
3,432,754 |
365,062 |
Condensed consolidated interim
statement of changes in equity
For the six months ended 31 December
2016
|
SHARE
CAPITAL
$ |
SHARE-BASED PAYMENTS RESERVE
$ |
OPTION-BASED PAYMENTS RESERVE
$ |
TRANSLATION RESERVE
$ |
ACCUMULATED LOSSES
$ |
TOTAL
$ |
Balance at 1 July
2015 |
31,311,988 |
- |
398,924 |
502,328 |
(18,451,415) |
13,761,825 |
Share
issues |
957,376 |
- |
- |
- |
- |
957,376 |
Equity raising
costs |
(52,343) |
- |
- |
- |
- |
(52,343) |
Exercise of options
over ordinary shares |
- |
- |
- |
- |
- |
- |
Vest of options
over ordinary shares |
- |
- |
- |
- |
- |
- |
Transfer to
share-based payments reserve |
- |
34,253 |
- |
- |
- |
34,253 |
Transfer to
option-based payments reserve |
- |
- |
145,293 |
- |
- |
145,293 |
Loss after tax for
the period |
- |
- |
- |
- |
(777,258) |
(777,258) |
Other comprehensive
income/(loss) for the period |
- |
- |
- |
204,758 |
- |
204,758 |
Balance at 31
December 2015 |
32,217,021 |
34,253 |
544,217 |
707,086 |
(19,228,673) |
14,273,904 |
|
|
|
|
|
|
|
Balance at 1 July
2016 |
32,784,203 |
- |
495,651 |
533,891 |
(19,973,039) |
13,840,706 |
Share
issues |
5,157,183 |
- |
- |
- |
- |
5,157,183 |
Equity raising
costs |
(318,167) |
- |
- |
- |
- |
(318,167) |
Exercise of options
over ordinary shares |
127,041 |
- |
- |
- |
- |
127,041 |
Expiry of options
over ordinary shares |
- |
- |
(44,698) |
- |
44,698 |
- |
Vest of options
over ordinary shares |
- |
- |
- |
- |
- |
- |
Transfer to
share-based payments reserve |
- |
- |
- |
- |
- |
- |
Transfer to
option-based payments reserve |
- |
- |
143,247 |
- |
- |
143,247 |
Loss after tax for
the period |
- |
- |
- |
- |
(1,514,366) |
(1,514,36) |
Other comprehensive
income/(loss) for the period |
- |
- |
- |
(237,156) |
- |
(237,156) |
Balance at 31
December 2016 |
37,750,260 |
- |
594,200 |
296,735 |
(21,442,707) |
17,198,488 |
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
Peter Reeve (Executive Chairman) |
Telephone: +61 (3) 9516 6500
info@auraenergy.com.au |
WH Ireland Limited
Adrian Hadden
James Bavister |
Telephone: +44 (0) 207 220 1666 |
Yellow Jersey PR Limited
Felicity Winkles
Joe Burgess |
Telephone:
+44 (0) 7748 843 871
+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.