URU METALS LIMITED URU METALS LIMITED: INTERIM RESULTS FOR PERIOD ENDED 30 SEPTEMBER 2022
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URU Metals Limited
Chairman's Statement
For the Period Ended 30 September 2022
I am pleased to present to our shareholders and stakeholders the consolidated financial statements of the Group for the period ended 30 September 2022.
In August 2021, URU successfully completed the disposal of the Zebediela Nickel Project ("Project") to Zeb Nickel Corp. (TSX-V: ZBNI) and the Project remains the primary focus of URU, through its 74.82% interest in Zeb Nickel Corp. and URU's continuing role as the technical operator of the Project.
In 2021, the nickel sector had an outstanding year, with nickel prices reaching a seven-year high of over $20,000 per tonne by year's end. We remain bullish on the long-term fundamentals for nickel sourced from Class I nickel sulphide deposits such as Zeb. The battery sector is currently the second largest demand driver for nickel and requires a Class I nickel product. Demand from the battery sector is projected to increase strongly in line with projected growing electric vehicle (EV) production numbers. Some estimates for the demand growth rate from the battery sector are around a compounded annual growth rate of almost 20% between 2020 and 2025 and around 9% between 2025 and 2040.
Based on a cost curve for 42% of global nickel production, and assuming a similar distribution for 100% of production, a long-term price floor at around 8 USD/lb. is forecast (Source: SP Global).
The Zebediela Nickel Project is well positioned to capitalise on the demand for Class I nickel. The discovery of Critical Zone rocks that host both nickel and platinum group metals (Ni-PGE) mineralisation have provided the Company with the opportunity to increase the overall grade, and hence basket price, of the Project, and will ultimately improve the economics of the Project.
Future drilling planned on the Project will target both the existing historical resource, termed Target 1, and the Critical Zone rocks, termed Target 2, which lie beneath Target 1. The Company aims to bring the historical resource into a current category, and target a maiden resource on Target 2, the success thereof will depend largely on the consistency of the Ni- PGE mineralisation.
The Company looks forward to the South African Department of Minerals and Energy issuing a Mining Right over the Project area in 2023, which will secure the mineral tenure for a further 30 years.
The Company believes that the Zebediela Nickel Project has the potential to be a world leader in green Class I nickel production, due to the opportunity for open pit mining powered by renewable energy in a mining friendly district. This will result in one of the lowest carbon footprint per pound nickel produced mines globally, with a strong focus on environmental, social and governance issues.
Jay Vieira
Non-executive Chairman
30 January 2023
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URU METALS LIMITED
CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
PERIOD ENDED 30 SEPTEMBER 2022
(UNAUDITED)
Notice To Reader
The accompanying unaudited condensed consolidated interim financial statements of URU Metals Limited (the "Company") have been prepared by and are the responsibility of management. The unaudited condensed consolidated interim financial statements have not been reviewed by the Company's auditors.
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URU Metals Limited | ||
Condensed Consolidated Interim Statements of Comprehensive Loss | ||
For the Period Ended 30 September 2022 | ||
(Unaudited) | ||
Six months | Six months | |
ended | ended | |
30 September | 30 September | |
2022 | 2021 | |
$'000 | $'000 | |
Administrative expenses | (436) | (273) |
Listing expense | - | (521) |
Net loss for the period | (436) | (794) |
Other comprehensive inocme (loss) | ||
Items that will be reclassified subsequently to income | ||
Effect of translation of foreign operations | (323) | (277) |
Other comprehensive loss for the period | (323) | (277) |
Total comprehensive loss for the period | (759) | (1,071) |
Net loss attributable to: | ||
Shareholders of the Company | (372) | (867) |
Non-controlling interest | (64) | (204) |
Total net loss | (436) | (1,071) |
Comprehensive loss attributable to: | ||
Shareholders of the Company | (693) | (867) |
Non-controlling interest | (66) | (204) |
Total comprehensive loss | (759) | (1,071) |
Basic and diluted net loss per share (USD dollars) | (0.26) | (0.48) |
Weighed average number of common shares outstanding | 1,646,691 | 1,646,691 |
The accompanying notes to the unaudited condensed consolidated interim financial statements are an integral part of these statements.
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URU Metals Limited | ||
Condensed Consolidated Interim Statements of Financial Position | ||
As at 30 September 2022 | ||
(Unaudited) | ||
As at | As at | |
30 September | 31 March | |
2022 | 2022 | |
$'000 | $'000 | |
ASSETS | ||
Non-current assets | ||
Intangible assets (note 7) | 4,538 | 4,687 |
Total non-current assets | 4,538 | 4,687 |
Current asset | ||
Trade and other receivables (note 8) | 187 | 204 |
Cash and cash equivalents | 1,060 | 1,618 |
Total current assets | 1,247 | 1,822 |
Total assets | 5,785 | 6,509 |
EQUITY AND LIABILITIES | ||
Equity | ||
Share capital (note 11) | 7,815 | 7,815 |
Share premium (note 11) | 48,070 | 48,070 |
Non-controlling interest (note 10) | 2,697 | 2,651 |
Equity portion of convertible debentures (note 9) | 62 | 62 |
Other reserves (note12) | 1,275 | 1,595 |
Accumulated deficit | (56,859) | (56,487) |
Total equity | 3,060 | 3,706 |
Current liabilities | ||
Trade and other payables (note 13) | 1,542 | 1,553 |
Due to related party (note 14) | 693 | 760 |
Convertible loan note (note 9) | 490 | 490 |
Total liabilities | 2,725 | 2,803 |
Total equity and liabilities | 5,785 | 6,509 |
The accompanying notes to the unaudited condensed consolidated interim financial statements are an integral part of these statements.
Approved on behalf of the Board on 30 January 2023: | |
Jay Vieira, | Kyle Appleby, |
Non-executive Chairman | Non-executive Director |
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URU Metals Limited published this content on 30 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2023 13:37:03 UTC.
