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Aura Energy losses narrow as company eyes IPO for poleymetallic project
Aura Energy announced on Friday that for the six months up to 31 December it narrowed its losses by 38% to £931,000 as the company increased its net cash outflows.
The company's books saw a 30% increase in administration fees to £423,000 over the period as the company seeks to move forward with its operations in Scandinavia and West Africa.
However, Aura Energy benefitted from not having to pay the cost of listing on the AIM market in the period as it had racked up costs of £683,000 associated with this in the six months prior to 2016, largely explaining the narrowing in losses between the two periods.
As of 31 December, the company held £616,000 in net cash, a 76% decrease on the same time a year before.
"During the Half-Year, the Company continued to progress the Tiris project feasibility study and resolved to pursue a separate listing by way of an IPO for its vast Haggan polymetallic property which contains significant quantities of Battery Metals including vanadium, cobalt and nickel," the company said in a statement.
The Tiris project in Mauritania is a wholly owned uranium project based on a major greenfields discovery of 49 Mlb U3O8 in current resources from 66 million tonnes @ 334 ppm U3O8.
Aura Energy said this project is its best prospect for near-term cashflow as uranium is currently trading at cash costs of US$19.40/pound U3O8.
According to the company, a low cost mine operating at the area could produce 11 million pounds of uranium over the course of 15 years.
Elsewhere, the AIM traded company's Haggan project in Sweden is projected for further development with the assistant of the aforementioned IPO after the identification of a resource of 7,870 Mlbs V, 1,640 Mlbs Ni, 2,230 Mlbs Zn, 1,070 Mlbs Mo and 803 Mlbs U3O8.
As of 0945 GMT, Aura Energy Limited's shares were down 3.85% at 1.25p.