Aura Energy Limited Half-year Report

 
TIDMAURA 
 
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 
 
                                                     31 DEC 2016  31 DEC 2015 
                                                Note $            $ 
 
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 
 
                                                     6 MONTHS TO 6 MONTHS TO 
                                            NOTE     '31 DEC     '31 DEC 
                                                     2016        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             (1,514,366) (777,258) 
tax 
 
Other comprehensive income/(loss)                    (237,156)   204,758 
 
Total comprehensive  income/(loss)                   (1,751,522) (572,500) 
attributable  to members of Aura Energy 
Limited 
 
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    6 MONTHS TO 
                                             '31 DEC 2016   '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           (1,532,107)    (657,434) 
activities 
 
Cash flows from investing activities 
 
Exploration and evaluation payments          (253,339)      (719,772) 
 
Acquisition of property, plant and           (20,808)       - 
equipment 
 
Net cash from/ (used in) investing           (274,147)      (719,772) 
activities 
 
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            4,992,095      799,871 
activities 
 
Net increase/(decrease) in cash and          3,185,841      (577,335) 
cash equivalents 
 
Cash and cash equivalents at beginning       317,758        943,011 
of the period 
 
Exchange fluctuation                         (70,845)       (614) 
 
Cash and cash equivalents at period          3,432,754      365,062 
end 
 
Condensed consolidated interim statement of changes in equity 
 
For the six months ended 31 December 2016 
 
               SHARE      SHARE-BASED OPTION-BASED TRANSLATION ACCUMULATED  TOTAL 
               CAPITAL    PAYMENTS    PAYMENTS     RESERVE     LOSSES 
                          RESERVE     RESERVE 
               $          $           $            $           $            $ 
 
Balance at 1   31,311,988 -           398,924      502,328     (18,451,415) 13,761,825 
July 2015 
 
Share issues   957,376    -           -            -           -            957,376 
 
Equity raising (52,343)   -           -            -           -            (52,343) 
costs 
 
Exercise of    -          -           -            -           -            - 
options over 
ordinary 
shares 
 
Vest of        -          -           -            -           -            - 
options over 
ordinary 
shares 
 
Transfer to    -          34,253      -            -           -            34,253 
share-based 
payments 
reserve 
 
Transfer to    -          -           145,293      -           -            145,293 
option-based 
payments 
reserve 
 
Loss after tax -          -           -            -           (777,258)    (777,258) 
for the period 
 
Other          -          -           -            204,758     -            204,758 
comprehensive 
income/(loss) 
for the period 
 
Balance at 31  32,217,021 34,253      544,217      707,086     (19,228,673) 14,273,904 
December 2015 
 
Balance at 1   32,784,203 -           495,651      533,891     (19,973,039) 13,840,706 
July 2016 
 
Share issues   5,157,183  -           -            -           -            5,157,183 
 
Equity raising (318,167)  -           -            -           -            (318,167) 
costs 
 
Exercise of    127,041    -           -            -           -            127,041 
options over 
ordinary 
shares 
 
Expiry of      -          -           (44,698)     -           44,698       - 
options over 
ordinary 
shares 
 
Vest of        -          -           -            -           -            - 
options over 
ordinary 
shares 
 
Transfer to    -          -           -            -           -            - 
share-based 
payments 
reserve 
 
Transfer to    -          -           143,247      -           -            143,247 
option-based 

payments 
reserve 
 
Loss after tax -          -           -            -           (1,514,366)  (1,514,36) 
for the period 
 
Other          -          -           -            (237,156)   -            (237,156) 
comprehensive 
income/(loss) 
for the period 
 
Balance at 31  37,750,260 -           594,200      296,735     (21,442,707) 17,198,488 
December 2016 
 
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                     Telephone: [phone] 
Peter Reeve (Executive Chairman)        [e-mail] 
 
WH Ireland Limited                      Telephone: [phone] 
Adrian Hadden 
James Bavister 
 
Yellow Jersey PR Limited                Telephone: 
Felicity Winkles                        [phone] 
Joe Burgess                             [phone] 
 
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. 
 
 
 
END 
 

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March 16, 2017 03:50 ET (07:50 GMT)