REG - Aura Energy Limited - Half-year Report
18/03/2024 07:00
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RNS Number : 1466H Aura Energy Limited 18 March 2024
18 March 2024
Interim Financial Report
Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or the "Company") is pleased
to announce that it has released its Interim Financial Report for the
Half-Year ended 31 December 2023.
A full version of the Interim Financial report can also be viewed here:
http://www.rns-pdf.londonstockexchange.com/rns/1466H_1-2024-3-17.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1466H_1-2024-3-17.pdf)
The Interim Financial Report is also available on the Company's website at:
www.auraenergy.com.au (http://www.auraenergy.com.au)
Directors' Report
Your directors present their report on the consolidated entity consisting of
Aura Energy Limited ('Aura' or the 'Company') and the entities it controlled
(the 'Group') at the end of, or during, the half-year ended 31 December 2023
(the 'Period').
Directors
The following persons were Directors of the Company during the whole of the
financial period and up to the date of this report, except as otherwise
indicated:
Mr Philip Mitchell, Non-Executive Chair
Mr Bryan Dixon, Non-Executive Director
Mr Warren Mundine, Non-Executive Director
Mr Patrick Mutz, Non-Executive Director
Mr Andrew Grove, Managing Director & CEO (appointed 30 January 2024)
Mr David Woodall, Managing Director & CEO (resigned 30 January 2024)
Principal activities
The principal activities of the consolidated entity during the course of the
Period were the development, exploration and evaluation of uranium in
Mauritania and vanadium and other battery metals in Sweden.
There was no significant change in the nature of these activities during the
Period.
Operations Review
Aura is an ASX and AIM-listed minerals exploration and development company,
focused on the development of the Tiris Uranium Project in Mauritania and the
Häggån Vanadium Polymetallic Project in Sweden. During the period, Aura has
achieved several milestones and made significant progress with both projects.
Tiris Uranium Project
The Front-End Engineering Design ('FEED') Study for the Tiris Project
('Tiris') progressed significantly during the Period, with the results
published on 28 February 2024. The FEED Study confirms Tiris as high-value
low-risk commercial scaled low-cost near-term uranium mine. Tiris has the key
advantage that the beneficiation of the shallow free digging ore delivers very
high grade (~1,900ppm U(3)O(8)), material to the leaching circuit without the
need for crushing or grinding.
Operationally, an extensional drilling program on the Tiris East tenements was
mobilised during the Period and commenced in early January 2024. This program
is targeting an Exploration Target in the range of 8-32 Mlbs U(3)O(8) aiming
to increase the total Tiris resources towards 100Mlbs U(3)O(8). While
uncertainty over the conversion of the exploration program remains, if it
provides a low-cost uplift to the resource inventory, it will introduce an
opportunity to increase production rates and/or extend the mine life at Tiris.
During the Period, the Company completed a detailed regional evaluation
program based on historical drilling and radiometric data that underpins the
Tiris Uranium Project. After this analysis, Aura applied for an additional
~13,000 km(2) of exploration tenements in the broader Tiris Uranium Province
in November 2023, securing a significant strategic position in a prospective
but underexplored uranium province. Subject to successful granting of these
applications, Aura will work progressively to confirm and test exploration
targets within these tenements throughout the course of 2024 and 2025.
Moving into 2024, Aura will continue the transition towards becoming a uranium
producer. Aura continues to believe that demand for uranium will grow
significantly over the next two decades. The increasing global demand for
electricity and the global shift towards low carbon energy sources will
require a significant increase in nuclear power generation and uranium demand.
We have already seen the spot U(3)O(8) price increase from US$65/lb in 2023 to
the current US$95/lb. Offtake discussions have continued to advance in the
backdrop of the strongly appreciating uranium spot market. Funding discussions
will commence shortly and the Company will progress towards a Final Investment
Decision ('FID') in 2024.
Häggån Vanadium Project
In September 2023, the Company announced the completion of the Scoping Study
for the Häggån Vanadium Project in Sweden. Häggån hosts a world-class
polymetallic ore body with a global scale vanadium resource. The Base Case
Scenario outlined in the Scoping Study demonstrated outstanding economics with
an NPV range from US$380-US$1,231 million, depending on final plant
construction and forward price assumptions. This Base Case included only
<3% of Häggån's known 2.0Bn tonne Mineral Resource Estimate and assumed
that uranium would not be extracted from the project.
A summary of the Scoping Study demonstrated:
· Post-tax NPV ranging from US$380 - US$1,231 Million.
· A post-tax IRR of 26% - 47% and a payback period of 1.5
to 2 years.
· Initial capital cost of US$593 Million to generate an
operating cash flow of between US$140-$270 Million per annum.
· Häggån currently has defined a global Mineral Resource
Estimate of ~2 Billion tonnes at an average grade of 0.3% V(2)O(5), containing
13.3 Billion lbs V(2)O(5) at a 0.2% V(2)O(5) cutoff.
· The Häggån Mineral Resource also contains significant
uranium totalling 800 Million pounds of U(3)O(8).
· The Base Case scenario proposes mining the high-grade
zone at ~5.9Mtpa producing approximately:
o 10,400 tpa high-quality vanadium flake.
o ~217,000 tpa V(2)O(5) sulphate of potash (SOP) by-product for sale as
fertiliser.
o 3,000 tpa mixed sulphide product.
The outcomes of the Scoping Study were immediately used as input for the
application process for a 25-year Exploitation permit application. This
process has included multiple consultation meetings that have been conducted
with local communities in Sweden during the Period.
Aura also continues to support the Swedish Government's strategy to create
energy independence and the methodical approach it is taking to potentially
rescinding the legislated ban on uranium mining. The change in language used
in the energy target policy from "100% renewable" to "100% fossil-free"
electricity by the Swedish parliament, is tangible evidence of the shift in
sentiment towards the use of nuclear power due to its stability, reliability
and lack of greenhouse emissions. The Swedish Government has recently
initiated an inquiry to consider lifting the current ban on uranium mining. If
the sale of uranium was allowed, it would add additional upside to the
economic outcomes for Häggån.
Corporate
During the Period, the Company announced the appointment of Ross Kennedy as
Company Secretary replacing Mr Phillip Hains. Mr Kennedy is an experienced
Company Secretary with more than 30 years of experience.
The Company's registered office changed to Level 30, 35 Collins Street,
Melbourne, Victoria, Australia.
A total of 6,660,150 AEEO Options were exercised during the Period.
Financial Review
The Group's consolidated net loss for the half year ended 31 December 2023
after providing for income tax amounted to $2,987,251 (2022: $3,316,842).
The Group held net assets of $37,826,938 as at 31 December 2023 (30 June 2023:
$39,802,295), including cash and cash equivalents of $5,866,138 (30 June 2023:
$11,238,716).
Refer to the preceding "Operations Review" section for further details on the
operations of the company.
Events occurring after the balance sheet date
On 25 January 2024, the Company announced that it had entered into Option
Funding Agreements with certain investors who have agreed to prepay the
Company approximately $4.3 million, equal to the exercise monies for all
remaining unexercised listed options expiring 30 June 2024. The funds will be
repaid to the investors upon receipt of option exercise monies as and when the
current Option Holders exercise their options.
As part of the Options Funding Agreements, the Company entered into an
agreement with PAC Partners Securities Pty Limited (the 'Underwriter') to
underwrite 20 million unexercised listed options ("Underwritten Options")
whereby the Underwriter will receive shares equal to the number of shares to
be issued on exercise of 100% of the Underwritten Options that are not
exercised by the Option Holders by the Option Expiry Date, in lieu of cash.
The Options are listed and have an expiry date of 30 June 2024, an exercise
price of $0.052 each, and on exercise convert into ordinary fully paid shares
in the Company.
On 30 January 2024, the Company announced the resignation of David Woodall and
the appointment of Andrew Grove as Managing Director and CEO.
On 28 February 2024, the Company announced the FEED Study results for the
Tiris Uranium Project, noting the following key points:
· FEED study confirms excellent economics and capital
efficiency to develop Tiris into a globally significant near-term uranium
operation:
o NPV(8) of US$366 million
o IRR of 34% post tax and 2.5 year payback
o Uranium price of US$80/lb U(3)O(8)
· Average base case production of 1.9Mlbspa U(3)O(8) over a
17-year mine life
· Shallow free dig open pit mining and beneficiation
delivers a low cost, high-grade leach feed averaging 1,997ppm U(3)O(8) for
first five years and 1,743ppm U(3)O(8) life of mine
· Low AISC of US$34.5/lb U(3)O(8) demonstrates strong
margins
· Efficient capital cost of US$230 million supporting a
long mine life
· Final Investment Decision expected late in 2024 for an
18-month construction timeline to first production
· Processing facility designed for future expansion beyond
2Mlbspa
· Extensional drill program underway targeting further
resource growth
On 15 March 2024, the Company's securities on ASX went into a trading halt,
pending an announcement about the outcome of a Private Placement
("Placement"). Joint Lead Managers for the Placement have been formally
engaged. As at the date of this report, the outcome of the Placement is not
certain.
No other matter or circumstance has arisen since 31 December 2023 that has
significantly affected, or may significantly affect the Group's operations,
the results of those operations, or the Group's state of affairs in future
financial years.
Proceedings on behalf of the Group
No person has applied to the Court under section 237 of the Corporations Act
2001 for leave to bring proceedings on behalf of the Company, or to intervene
in any proceedings to which the Company is a party, for the purpose of taking
responsibility on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company
with leave of the Court under section 237 of the Corporations Act 2001.
Dividends
No dividends have been paid or declared by the Company for the current
financial period. No dividends were paid for the previous financial period.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section
307C of the Corporations Act 2001 is set out on page 9 of the Interim
Financial Report..
This report is made in accordance with a resolution of directors.
Andrew Grove
Managing Director and CEO
15 March 2024
Condensed Consolidated Statement of Profit or Loss & Other Comprehensive
Income
For the half year ended 31 December 2023
Note 31 Dec 2023 31 Dec 2022
$ $
Continuing operations
Other losses (11,229) (129,426)
Employee benefits (670,885) (398,296)
General & Administrative expenses 6 (1,395,567) (1,151,054)
Share based payment expenses (523,173) (1,221,745)
Operating loss (2,600,854) (2,900,521)
Finance income 154,512 24,112
Finance expense 8(b) (8,066) -
Finance income - net 146,446 24,112
Loss before income tax (2,454,408) (2,876,409)
Income tax expense - -
Loss from continuing operations (2,454,408) (2,876,409)
Loss from disposal group (532,843) (440,436)
Loss for the Period (2,987,251) (3,316,845)
Loss is attributable to:
Owners of Aura Energy Limited (2,979,549) (3,304,204)
Non-controlling interests (7,702) (12,638)
(2,987,251) (3,316,842)
Other comprehensive income
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations 142,393 9,696
Total comprehensive loss for the Period 142,393 9,696
Total Comprehensive Loss after income tax for the year attributable to equity (2,844,858) (3,307,146)
holders of the Company
Total comprehensive income for the Period is attributable to:
Owners of Aura Energy Limited (2,860,466) (3,294,789)
Non-controlling interests 15,608 (12,357)
(2,844,858) (3,307,146)
Basic and diluted loss per share attributable to equity holders of the Cents Cents
Company:
From continuing operations attributable to the ordinary (0.43) (0.56)
equity holders of the company
From continuing operations and disposal group attributable to the ordinary (0.52) (0.64)
equity holders of the company
The above Condensed Consolidated Statement of Profit or Loss and Other
Comprehensive Income should be read in conjunction with the accompanying
notes.
Condensed Consolidated Statement of Financial Position
As at 31 December 2023
Note 31 Dec 2023 30 Jun 2023
$ $
Assets
Current assets
Cash and cash equivalents 7 5,862,213 11,238,716
Other receivables 178,215 57,531
Other current assets 94,880 35,404
Assets classified as disposal group 2,612,405 2,735,650
Total current assets 8,747,713 14,067,301
Non-current assets
Security deposits 53,295 50,380
Plant and equipment 9,524 5,158
Right of use assets 8(a) 267,140 -
Exploration and evaluation 9 32,827,319 27,248,300
Total non-current assets 33,157,278 27,303,838
Total assets 41,904,991 41,371,139
Liabilities
Current liabilities
Trade and other payables 10 3,564,118 1,310,087
Employee benefits 107,215 87,110
Other current liabilities 3,067 667
Lease liabilities 8(b) 82,674 -
Liabilities directly associated with assets classified as disposal group 112,041 170,980
Total current liabilities 3,869,115 1,568,844
Non-current liabilities
Employee benefits 1,847 -
Lease liabilities 8(b) 207,091 -
Total non-current liabilities 208,938 -
Total liabilities 4,078,053 1,568,844
Net assets 37,826,938 39,802,295
Equity
Share capital 11 82,278,531 81,832,301
Other equity 314,346 314,346
Other reserves 12 5,006,460 4,464,106
Accumulated losses (49,712,736) (46,733,187)
Capital and reserves attributable to owners of parent 37,886,601 39,877,566
Non-controlling interests (59,663) (75,271)
Total equity 37,826,938 39,802,295
The above Condensed Consolidated Statement of Financial Position should be
read in conjunction with the accompanying notes.
Condensed Consolidated Statement of Changes in Equity
For the half year ended 31 December 2022
Attributable to owners of Aura Energy Limited
Note Share capital Other equity Other reserves Accumulated losses Total Non-controlling interests Total equity
$ $ $ $ $ $ $
Balance at 1 July 2022 69,357,543 314,346 3,946,825 (40,240,837) 33,377,877 236,573 33,614,450
Loss after income tax expense for the half year - - - (3,304,204) (3,304,204) (12,638) (3,316,842)
Other comprehensive income for the half year - - 9,415 - 9,415 281 9,696
Total comprehensive loss for the half year - - 9,415 (3,304,204) (3,294,789) (12,357) (3,307,146)
Transactions with owners in their capacity
as owners
Contributions of equity, net of transaction costs and tax (11,498) - - - (11,498) - (11,498)
Share based payments 243,000 - - - 243,000 - 243,000
Options exercised 1,944,283 - (558,699) - 1,385,584 - 1,385,584
Loan funded securities - - 1,221,745 - 1,221,745 - 1,221,745
Balance at 31 December 2022 71,533,328 314,346 4,619,286 (43,545,041) 32,921,919 224,216 33,146,135
The above Condensed Consolidated Statement of Changes in Equity should be read
in conjunction with the accompanying notes.
Condensed Consolidated Statement of Changes in Equity
For the half year ended 31 December 2023
Attributable to owners of Aura Energy Limited
Note Share capital Other equity Other reserves Accumulated losses Total Non-controlling interests Total equity
$ $ $ $ $ $ $
Balance at 1 July 2023 81,832,301 314,346 4,464,106 (46,733,187) 39,877,566 (75,271) 39,802,295
Loss after income tax expense for the half year - - - (2,979,549) (2,979,549) (7,702) (2,987,250)
Other comprehensive income for the half year - - 119,083 - 119,083 23,310 142,393
Total comprehensive loss for the half year - - 119,083 (2,979,549) (2,860,465) 15,608 (2,844,857)
Transactions with owners in their capacity
as owners
Options exercised 11 346,328 - - - 346,328 - 346,328
Transfer from reserves on exercise of options 99,902 - (99,902) - - - -
Loan funded securities - - 523,173 - 523,173 - 523,173
Balance at 31 December 2023 82,278,531 314,346 5,006,460 (49,712,736) 37,886,601 (59,663) 37,826,938
The above Condensed Consolidated Statement of Changes in Equity should be read
in conjunction with the accompanying notes.
Condensed Consolidated Statement of Cash Flows
For the half year ended 31 December 2023
Note 31 Dec 2023 31 Dec 2022
$ $
Operating activities
Loss after income tax expense for the year (2,987,251) (3,316,845)
Adjustments for:
Depreciation expense 36,726 766
Exchange fluctuations (13,771) 118,148
Share based payments 523,173 1,221,745
Finance costs 8,066 -
Change in operating assets and liabilities:
Decrease/(increase) in other receivables (120,684) (12,979)
Decrease/(increase) in other operating assets (59,476) (31,732)
Increase/(decrease) in trade and other payables (85,685) 512,730
Increase/(decrease) in employee benefits (11,959) (20,460)
Increase/(decrease) in other operating liabilities 2,400 102,802
Net cash flows used in operating activities (2,708,461) (1,425,825)
Investing activities
Payments for plant and equipment (5,740) -
Payments for exploration and evaluation (3,034,497) (4,295,300)
Net cash used in investing activities (3,040,237) (4,295,300)
Financing activities
Share issue transaction costs - (11,498)
Exercise of options 346,328 1,385,184
Net cash from financing activities 346,328 1,373,686
Net decrease in cash and cash equivalents (5,402,370) (4,347,439)
Cash and cash equivalents, beginning of year 11,276,307 10,706,700
Effects of exchange rate changes on cash and (7,799) (33,870)
cash equivalents
Cash and cash equivalents, end of the half year 7 5,866,138 6,325,391
The above Condensed Consolidated Statement of Cash Flows should be read in
conjunction with the accompanying notes.
For full Notes to the condensed consolidated financial statements please
review the Interim Financial Report via the link above.
ENDS
The Managing Director & CEO of Aura Energy Ltd has approved this
announcement.
This Announcement may contain inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
For further information, please contact:
Andrew Grove Paul Ryan SP Angel Corporate Finance LLP
Managing Director and CEO Citadel-MAGNUS Nominated Advisor and Broker
Aura Energy Limited Investor & Media Relations David Hignell
agrove@auraee.com (mailto:Agrove@auraee.com) pryan@citadelmagnus.com (mailto:pryan@citadelmagnus.com) Kasia Brzozowska
+61 414 011 383 +61 409 296 511 Grant Baker
+44 (0) 203 470 0470
About Aura Energy (ASX: AEE, AIM: AURA)
Aura Energy is an Australian-based mineral company with major uranium and
polymetallic projects in Africa and Europe.
The Company is focused on developing a uranium mine at the Tiris Uranium
Project, a major greenfield uranium discovery in Mauritania. The February 2024
FEED study demonstrated Tiris to be a near-term low-cost 2Mlbs U3O8 pa near
term uranium mine with a 17-year mine life with excellent economics and
optionality to expand to accommodate resource growth.
Aura plans to transition from a uranium explorer to a uranium producer to
capitalise on the rapidly growing demand for nuclear power as the world shifts
towards a decarbonised energy sector.
Beyond the Tiris Project, Aura owns 100% of the Häggån Project in Sweden.
Häggån contains a global-scale 2.5Bt vanadium, sulphate of potash ("SOP")
and uranium resource. Utilising only 3% of the resource, a 2023 Scoping Study
outlined a 27-year mine life based on mining 3.5Mtpa.
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