URU METALS LIMITED URU METALS LIMITED: INTERIM RESULTS FOR PERIOD ENDED 30 SEPTEMBER 2023
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URU Metals Limited
Chairman's Statement
For the Period Ended 30 September 2023
I am pleased to present to our shareholders and stakeholders the consolidated financial statements of the Group for the period ended 30 September 2023.
URU's focus remains firmly on the Zeb Nickel Sulphide Project. This remains a key venture for URU Metals, given our 73.67% interest in Zeb Nickel Corp. The demand for nickel, essential in lithium-ion batteries and the burgeoning electric vehicle market, continues to grow, highlighting the importance of our project.
The global market primarily offers Class 2 nickel, but our Zeb Project, with its Class 1 nickel sulphide deposits, stands out for its quality and scarcity. Our recent exploration work this year has further confirmed the project's status as a premier undeveloped nickel resource and the focus will be on identifying a higher-grade nickel sulphide resource.
The nickel market in 2023 is experiencing a surplus mainly due to the increased production of Class 2 nickel, particularly from Indonesia. However, demand from the EV sector and for high-quality nickel sulphide is growing, which should lead to a tighter market in the coming years. This increasing demand, coupled with limited high-grade nickel sulphide supplies, points towards a future where the demand for nickel should outpace supply, leading to potential market deficits by the mid-2020s
Our ongoing commitment at URU is to develop metals critical for rechargeable batteries, such as nickel, graphite, and lithium. The Zeb Nickel Project in Limpopo remains at the forefront of our efforts, with the potential to hold a key position in the global nickel market.
We thank our shareholders for their continued support and look forward to another year of progress and development at Zeb Nickel Corp.
Kyle Appleby
Non-executive Chairman
27 December 2023
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URU METALS LIMITED
CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
PERIOD ENDED 30 SEPTEMBER 2023
(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 2023 | ||
(Expressed in USD) | ||
(Unaudited) | ||
Six months | Six months | |
ended | ended | |
30 September | 30 September | |
2023 | 2022 | |
$'000 | $'000 | |
Administrative expenses | (396) | (436) |
Other income | 22 | - |
Net loss for the period | (374) | (436) |
Other comprehensive inocme (loss) | ||
Items that will be reclassified subsequently to income | ||
Effect of translation of foreign operations | (20) | (323) |
Other comprehensive loss for the period | (20) | (323) |
Total comprehensive loss for the period | (394) | (759) |
Net loss attributable to: | ||
Shareholders of the Company | (299) | (372) |
Non-controlling interest | (75) | (64) |
Total net loss | (374) | (436) |
Comprehensive loss attributable to: | ||
Shareholders of the Company | (319) | (693) |
Non-controlling interest | (75) | (66) |
Total comprehensive loss | (394) | (759) |
Basic and diluted net loss per share (USD dollars) | (0.23) | (0.26) |
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 2023
(Expressed in USD) (Unaudited)
As at | As at | |
30 September | 31 March | |
2023 | 2023 | |
$'000 | $'000 | |
ASSETS | ||
Non-current assets | ||
Intangible assets (note 7) | 5,017 | 4,763 |
Total non-current assets | 5,017 | 4,763 |
Current asset | ||
Trade and other receivables | 160 | 157 |
Cash and cash equivalents | 383 | 506 |
Total current assets | 543 | 663 |
Total assets | 5,560 | 5,426 |
EQUITY AND LIABILITIES | ||
Equity | ||
Share capital (note 12) | 7,815 | 7,815 |
Share premium (note 13) | 48,070 | 48,070 |
Non-controlling interest (note 10) | 2,782 | 2,783 |
Equity portion of convertible debentures (note 9) | 62 | 62 |
Other reserves (note13) | 1,317 | 1,330 |
Accumulated deficit | (57,795) | (57,496) |
Total equity | 2,251 | 2,564 |
Current liabilities | ||
Trade and other payables | 1,906 | 1,670 |
Due to related party (note 14) | 703 | 702 |
Loan payable (note 11) | 214 | - |
Convertible loan note (note 9) | 486 | 490 |
Total liabilities | 3,309 | 2862 |
Total equity and liabilities | 5,560 | 5,426 |
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 27 December 2023:
Kyle Appleby Non-Executive Chairman | Avi Robinson Non-Executive Director |
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URU Metals Limited | ||
Condensed Consolidated Interim Statements of Cash flow | ||
For the period Ended 30 September 2023 | ||
(Express in USD) | ||
(Unaudited) | ||
Six months | Six months | |
ended | ended | |
30 September | 30 September | |
2023 | 2022 | |
$'000 | $'000 | |
Cash flows from operating activities | ||
Net loss for the period | (374) | (436) |
Adjustments for: | ||
Foreign exchange gain | (1) | (67) |
Stock-based compensation | 74 | 113 |
Accretion expense | (5) | - |
Changes in non-cash working capital items: | ||
Increase in receivables | (3) | 17 |
Increase in trade and other payables | 237 | (11) |
Net cash used in operating activities | (72) | (384) |
Investing activities | ||
Purchase of intangible assets | (251) | (282) |
Net cash used in investing activities | (251) | (282) |
Financing activities | ||
Proceeds from due to related party | 223 | - |
Net cash generated by financing activities | 223 | - |
Loss on exchange rate changes on cash and cash equivalents | (23) | 108 |
Net decrease in cash and cash equivalent | (123) | (558) |
Cash and cash equivalents, beginning of period | 506 | 1,618 |
Cash and cash equivalents, end of period | 383 | 1,060 |
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 Statement of Changes in Equity
For the Period Ended 30 September 2023
(Expressed in USD)
(Unaudited)
Share | ||||||||
Options | Foreign | Equity | ||||||
and | Currency | portion of | Non- | |||||
Share | Share | Warrants | Translation | convertible | controlling | Accumulated | ||
Capital | Premium | Reserves | Reserve | debenture | Interest | deficit | Total | |
$'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | |
At 31 March 2022 | 7,815 | 48,070 | 2,495 | (900) | 62 | 2,651 | (56,487) | 3,706 |
Increase of non-controlling interest through | ||||||||
stock-based compensation in Zeb Nickel | - | - | - | - | - | 112 | - | 112 |
Stock-based compensation | - | - | 1 | - | - | - | - | 1 |
Net loss and comprehensive loss for the | ||||||||
period | - | - | - | (321) | - | (66) | (372) | (759) |
At 30 September 2022 | 7,815 | 48,070 | 2,496 | (1,221) | 62 | 2,697 | (56,859) | 3,060 |
Share | ||||||||
Options | Equity | |||||||
and | Foreign | portion of | Non- | |||||
Share | Share | Warrants | Currency | convertible | controlling | Accumulated | ||
Capital | Premium | Reserves | Translation | debenture | Interest | deficit | Total | |
$'000 | $'000 | $'000 | Reserve $'000 | $'000 | $'000 | $'000 | $'000 | |
At 31 March 2023 | 7,815 | 48,070 | 2,496 | (1,166) | 62 | 2,783 | (57,496) | 2,564 |
Increase of non-controlling interest through stock-based | ||||||||
compensation in Zeb Nickel | - | - | - | - | - | 74 | - | 74 |
Stock-based compensation | - | - | - | - | - | - | - | - |
Net loss and comprehensive loss for the period | - | - | - | (13) | - | (75) | (299) | (387) |
At 30 September 2023 | 7,815 | 48,070 | 2,496 | (1,179) | 62 | 2,782 | (57,795) | 2,251 |
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
Notes to Condensed Consolidated Interim Financial Statements For the Period Ended 30 September 2023
(Express in USD) (Unaudited)
1. General information
URU Metals Limited (the "Company"), formerly known as Niger Uranium Limited, and before that, as UraMin Niger Limited, was incorporated in the British Virgin Islands ("BVI") on 21 May 2007. The Company's shares were admitted to trading on AIM, a market operated by the London Stock Exchange on 12 September 2007. The address of the Company's registered office is Intertrust, P.O. Box 92, Road Town, Tortola, British Virgin Islands, and its principal office is Suite 401, 4 King Street West, Toronto, Ontario, Canada, M5H 1A1.
The unaudited condensed consolidated interim financial statements of the Group for the period ended 30 September 2023 comprise the Company and its subsidiaries.
2. Nature of operations
During the six months ended 30 September 2023, the Group's principal business activities were the exploration and development of mineral properties in South Africa.
The business of mining and exploring for minerals involves a high degree of risk and there can be no assurance that planned exploration and development programs will result in profitable mining operations. The Group has not yet established whether its mineral properties contain reserves that are economically recoverable. Changes in future conditions could require material write-downs of the carrying values of mineral properties.
The Group is in the exploration stage and is subject to the risks and challenges similar to other companies in a comparable stage of development. These risks include, but are not limited to:
- Dependence on key individuals;
- Receipt and maintenance of all required exploration permits and property titles;
- Successful development; and
- The ability to secure adequate financing to meet the minimum capital required to successfully develop the Group's projects and continue as a going concern.
The Company now holds 41,000,000 Common Shares in Zeb Nickel Corp. through its wholly owned subsidiary Floza Capital Management Limited representing approximately 73.67 of the issued and outstanding Common Shares of Zeb Nickel Corp.
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URU Metals Limited
Notes to Condensed Consolidated Interim Financial Statements For the Period Ended 30 September 2023
(Express in USD) (Unaudited)
3. Basis of preparation
(a) Statement of compliance
The Company applies IFRS as issued by the International Accounting Standards Board ("IASB"). These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by IFRS as issued by the IASB.
The policies applied in these unaudited condensed consolidated interim financial statements are based on IFRSs issued and outstanding as of 29 December 2023, the date the Board of Directors approved the statements. The same accounting policies and methods of computation are followed in these unaudited condensed consolidated interim financial statements as compared with the most recent annual consolidated financial statements as at and for the year ended 31 March 2023. Any subsequent changes to IFRS that are given effect in the Company's annual consolidated financial statements for the year ending 31 March 2024 could result in restatement of these unaudited condensed consolidated interim financial statements.
(b) New accounting standards and interpretations
Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted. These standards are not expected to have a material impact on the Group in the current or future reporting periods.
The International Accounting Standards Board ("IASB") has issued/revised a number of relevant standards. Any standards that are not deemed relevant to the operations of the Group have been excluded. The Directors have chosen not to early adopt these standards and interpretations and they do not anticipate that they would have a material impact on the Company's financial statements in the period of initial application.
Effective date
IAS 1 - Presentation of Financial Statements - amendments regarding the classification of1 January 2024 liabilities
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URU Metals Limited
Notes to Condensed Consolidated Interim Financial Statements For the Period Ended 30 September 2023
(Express in USD) (Unaudited)
4. Financial risk and management
The Group's Board of Directors monitors and manages the financial risks relating to the operations of the Group. These include credit risk, liquidity risk and market risk which includes foreign currency and interest rate risks.
Credit risk
Credit risk is the risk of loss associated with a counterparty's inability to fulfill its payment obligations. The Group's credit risk is primarily attributable to the Group's cash and cash equivalents and trade and other receivables. The Group has no allowance for impairment that might represent an estimate of incurred losses on other receivables. The Group has cash and cash equivalents of $383,000 (31 March 2023: $506,000), which represent the maximum credit exposure on these assets. As at 30 September 2023, the majority of the cash and cash equivalents were held with a major Canadian chartered bank from which management believes the risk of loss to be minimal.
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation.
Typically the Group tries to ensure that it has sufficient cash on demand to meet expected operational expenses for a period of twelve months, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted. Management monitors the rolling forecasts of the Group's liquidity reserve on the basis of expected cash flows.
The following are the contractual maturities of financial liabilities:
6 months | |||||
Carrying | Contractual | 6 months | to 5 | ||
amount | cash flows | or less | years | ||
$'000 | $'000 | $'000 | $'000 | ||
30 September 2023 | |||||
Trade and other payables | 1,906 | 1,906 | 1,906 | - | |
Due to related party | 703 | 703 | 703 | - | |
Loan payable | 214 | 214 | 214 | ||
Convertible loan note | 486 | 486 | 486 | - | |
31 March 2023 | |||||
Trade and other payables | 1,670 | 1,670 | 1,670 | - | |
Due to related party | 702 | 702 | 702 | ||
Convertible loan note | 490 | 490 | 490 | - |
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group's loss or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Foreign currency rate risk
The Group, operating internationally, is exposed to currency risk on purchases that are denominated in a currency other than the functional currency of the Group's entities, primarily Pound Sterling ("GBP"), the Canadian Dollar ("CAD"), the South African Rand ("ZAR"), Swedish Krona ("SEK") and the US Dollar ("USD").
The Group does not hedge its exposure to currency risk.
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Disclaimer
URU Metals Limited published this content on 27 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 December 2023 19:26:47 UTC.
