Actionable news
0
All posts from Actionable news
Actionable news in URI: UNITED RENTALS Inc,

Uranium Resources Reports 2nd Quarter 2017 Results

CENTENNIAL, Colo., Aug. 14, 2017 (GLOBE NEWSWIRE) -- Uranium Resources, Inc.(Nasdaq:URRE) (ASX:URI), an energy metals exploration and development company, announced today its results for the second quarter of fiscal year 2017, and also discussed its business outlook and its energy metals business development in 2017.

Christopher M. Jones, President and Chief Executive Officer, said, "Continued work to strengthen our lithium projects portfolio, reclamation success in Texas, and a strong working capital position combine to give us a robust platform for growth in 2017 and beyond. As well, the startup of exploration drilling activities at Columbus Basin further demonstrates our commitment to our energy business."

Highlights for 2Q-2017 and to Date

  • Acquired approximately 9,300 acres of federal placer mining claims in the Railroad Valley of Central Nevada in June 2017, the Company's third lithium brine exploration project.
  • Commenced exploration drilling at the Columbus Basin lithium brine project on July 31, 2017.
  • Executed an amendment to the Juan Tafoya Land Corporation Mining Lease in April 2017, decreasing the annual rental payment and the production royalty rate.
  • Received shareholder approval of all proposals put forward at the Annual General Meeting held July 18, 2017, including the appointment of Tracy Pagliara to URI's Board of Directors.
  • Terminated the Stockholders' Agreement dated March 1, 2012 between URI and Resource Capital Funds V L.P. ("RCF") pursuant to which RCF had certain participation and Board rights.
  • Cash and working capital balances at June 30, 2017 are $7.2 million and $8.4 million, respectively.

Financial Overview

Table 1: Financial Summary (unaudited)

($ and Shares in 000's, Except Per Share) 1H 2017 2Q 2017 1Q 2017 1H 2016 2Q 2016 1Q 2016 1H

Variance
2Q

Variance
Net Cash Used in Operations $ (6,334 ) $ (3,047 ) $ (3,287 ) $ (5,240 ) $ (3,035 ) $ (2,205 ) 21 % 0 %
Mineral Property Expenses $ (2,321 ) $ (1,552 ) $ (769 ) $ (1,869 ) $ (1,138 ) $ (731 ) 24 % 36 %
General and Administrative, including Non-cash Stock Comp $ (3,276 ) $ (1,608 ) $ (1,668 ) $ (4,152 ) $ (2,007 ) $ (2,145 ) -21 % -20 %
Net Income/(Loss) $ (795 ) $ (2,639 ) $ 1,844 $ (8,880 ) $ (4,607 ) $ (4,273 ) -91 % -43 %
Net Income/Loss Per Share $ (0.03 ) $ (0.11 ) $ 0.09 $ (1.60 ) $ (0.75 ) $ (0.86 ) -98 % -85 %
Avg. Weighted Shares Outstanding 23,117 24,615 21,602 5,560 6,152 4,968 316 % 300 %
  • Net cash used in operations. Net cash used in operating activities was $3.0 million in 2Q-2017, same as in 2Q-2016 and $6.3 million for 1H-2017 compared to $5.2 million for 1H-2016. The increase of $1.1 million was primarily due to an increase in cash used to reduce accounts payable.
  • Operating expenses. Mineral property expenses increased by approximately $0.4 million for both 2Q-2017 and 1H-2017 versus the respective periods in 2016. The increase was mainly due to staking new claims at the Railroad Valley lithium project and payment of the 2016 annual lease for the Juan Tafoya project, which the Company had previously deferred. General and administrative charges decreased by $0.4 million and $0.9 million, respectively, from the corresponding periods in 2016. The decrease of $0.4 million was primarily due to a decrease in stock compensation expense while the $0.9 million decrease was due to a decrease in stock compensation, salaries and payroll burden, and consulting, legal, accounting, professional and public company expenses.
  • Net income. Consolidated net loss for 2Q-2017 decreased $2.0 million compared to 2Q-2016 due to a decrease in interest expense and impairment charges and additional gain recorded on the sale of Churchrock and Crownpoint projects. The consolidated net loss for 1H-2017 decreased by $8.1 million from 1H-2016 primarily due to the gain on the sale of the Churchrock and Crownpoint projects, a decrease in interest expense, a decrease in impairment charges and a decrease of general administrative expenses.
  • Cash and working capital. Continued working capital improvements resulted in an improved cash balance of $7.2 million at June 30, 2017 and working capital of $8.4 million compared to a working capital deficit of $4.3 million at December 31, 2016. The increase in working capital...

More