Half Yearly Report

RNS Number : 4537Y

Niger Uranium Limited

22 December 2010

 



For immediate release

22 December 2010

NIGER URANIUM LIMITED

("Niger Uranium" or the "Company")

Unaudited Interim Financial Results

for the six month period ended 30 September 2010

CHAIRMAN'S STATEMENT

I am delighted to present to our shareholders and stakeholders, the interim report and accounts of the Group for the six months ended 30 September 2010 (the "Period").

I believe that the Group has continued to deliver value to our shareholders and, following their approval at our Annual General Meeting in May 2010, I was most pleased to be able to announce a further dividend, in specie, to our shareholders, of 10.912 million of the shares the Company then held in Kalahari Minerals Plc.

HIGLIGHTS

In addition to the aforementioned in specie dividend made to shareholders in May, the highlights of our progress during the 6 months to 30 September 2010, and from then to the date of this report, can be summarised as follows:

NIGER

The re-commencement of our drilling and exploration programme at our In Gall and Irhazer licensed areas on 15 October 2010. Whilst we look forward to receiving positive results from these operations, the Company continues to evaluate the security risks within that country and remains ever mindful of the safety of our employees and contractors whilst in the field. 

NICKEL JOINT VENTURE

The Board believes that diversification into other base minerals will strengthen our base and will allow us further opportunities to deliver enhanced value to our shareholders. As a result, in October of this year, I was pleased to announce the establishment of a joint venture agreement with Southern African Nickel Ltd, in respect of various, already established, nickel exploration and development projects throughout Southern Africa. We are hopeful that these projects will deliver further value to the Company.

DISINVESTMENT IN KALAHARI MINERALS plc

In November, the sale of our remaining stake of 2.768 million shares in Kalahari Minerals Plc at a gross selling price of 205p. When originally purchased in 2008, the average price per share paid by the Company was 31p, and from this sale the Company generated net proceeds of £5.646 million, equivalent to around US$ 9.051 million.  

MANAGEMENT AND BOARD

As announced, Mr. Ian Stalker handed over the role of Chief Executive Officer to Mr. Anton Esterhuizen and relinquished his board position. I again would like to thank Mr. Stalker for his role in the Group from inception to date and wish him good luck in his new ventures. Mr. Esterhuizen is overseeing the Niger drilling progress and will advise the Board on the nickel joint venture.

OUTLOOK

Since incorporation, the Company has sought to widen its strategy in the field of metals exploration and development and continues to seek to develop a diverse portfolio of exploration and development projects either organically or through acquisition.

The Company intends to advance its projects in Niger, particularly our In Gall and Irhazer projects, where the investment climate in uranium remains positive.

The spot price of uranium continues to rise and is currently around the US$60/lb level, an increase of some 50% over the past six months.

The nickel joint venture is progressing well and we look forward to positive results from our metallurgical and geophysical testing. 

Whilst at the period end, the Company had cash resources of US$ 1.4 million and no borrowings, the subsequent disposal of our stake in Kalahari Minerals increased our cash resources to in excess of US$ 9 million at the date of this report.

Whilst it has dropped back since, the sale of our stake in Kalahari Minerals saw a rise in our share price from just over 4p to 8p. 

We continue to believe that the fundamentals of the uranium and base minerals industries remain positive and the Board is satisfied with the progress made by the Group and remains confident about the opportunities its future development.

Paul Loudon

Non-Executive Chairman

22 December 2010

For further information:

Niger Uranium

Gordon Cassidy, Finance Director

Tel: [phone]

Beaumont Cornish Limited (Nominated Adviser)

Michael Cornish

Tel: [phone]

Brand: Mining IR

Andre Morrall /Dr Iestyn Adams

Tel: [phone]

Independent Auditor's Review Report

Report on review of condensed consolidated interim financial statements to members of Niger Uranium Limited.

Introduction

We have reviewed the accompanying consolidated interim report of Niger Uranium Limited, which comprise the condensed consolidated statement of financial position at 30 September 2010, the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the six months then ended, and notes to the condensed consolidated interim financial statements. The directors are responsible for the preparation and presentation of this consolidated interim report in accordance with International Financial Reporting Standards, which includes the International Accounting Standard on Interim Financial Reporting (IAS 34). Our responsibility is to express a review opinion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of the consolidated interim report consists of making enquiries, primarily of persons responsible for the financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim report of Niger Uranium Limited for the six months ended 30 September 2010 is not prepared, in all material respects, in accordance with the International Accounting Standard on Interim Financial Reporting (IAS 34).

KPMG Inc.

Per Nick van Niekerk

Chartered Accountant (SA)

Registered Auditor

Director

22 December 2010

85 Empire Road

Parktown

South Africa

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

US$'000	Note	Reviewed 6 months ended 30 September 2010	Reviewed 6 months ended 30 September 2009	Audited  Year ended 31 March 2010
ASSETS
Non-current assets
Plant and equipment		185	423	294
Intangible assets	6	4 705	4 825	4 825
Investments	7	-	80 634	-
		4 890	85 882	5 119
Current assets
Investments	7	6 694	-	36 082
Receivables	8	508	4 055	219
Cash and cash equivalents		1 425	785	2 522
		8 627	4 840	38 823
Total assets		13 517	90 722	43 942
EQUITY AND LIABILITIES
Equity and reserves
Share capital and premium	9	46 852	47 543	46 852
Reserves	10	9 562	64 082	31 066
Accumulated deficit		(43 124)	(21 102)	(34 063)
		13 290	90 523	43 855
Current liabilities
Trade and other payables		227	199	87
Total equity and liabilities		13 517	90 722	43 942

The condensed consolidated interim financial statements were approved by the Board of Directors on 22 December 2010 and signed on its behalf by:

Gordon Cassidy

Finance Director

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

US$'000	Note	Reviewed 6 months ended 30 September 2010	Reviewed 6 months ended 30 September 2009	Audited Year   ended 31 March 2010
Revenue		-	-	-
Expenses		18 185	(1 135)	22 094
Salaries and wages		308	367	1 958
General and administrative expenditure		772	734	1 520
Exploration and pre-feasibility expenditure		4	657	863
Fair value reserve realised on disposal of available-for-sale investment		(19 255)	-	(25 940)
Foreign exchange losses/(gains)		(44)	6	83
Impairment of intangible assets		120	-	-
Warrant option expense		-	-	50
Warrant option reversal on expiry		(90)	(629)	(628)
Operating profit/(loss)	11	18 185	(1 135)	22 094
Net finance income		1	1	4
Finance expense		-	-	-
Finance income		1	1	4
Profit/(loss) before income tax		18 186	(1 134)	22 098
Income tax expense	12	-	-	-
Profit /(loss) for the period		18 186	(1 134)	22 098
Other comprehensive income
Foreign currency translation differences for foreign operations		(17)	28	(4)
Net change in the value of available-for-sale assets		(2 142)	38 774	30 415
Transfer to profit on realisation of fair value of available-for-sale investment		(19 255)	-	(25 940)
Other comprehensive income for the period, net of income tax		(21 414)	38 802	4 471
Total comprehensive income for the period		(3 228)	37 668	26 569
Profit/(loss) attributable to:
Owners of the company		18 186	(1 134)	22 098
Total comprehensive (loss)/income attributable to:
Owners of the company		(3 228)	37 668	26 569
Basic earnings/ (loss) per share (in US cents)	13	16.1	(1.0)	19.8
Diluted earnings/ (loss) per share (in US cents)	13	15.4	(1.2)	18.8

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

US$'000	Share Capital				Share premium				Foreign currency translation reserve			Share option reserve		Fair value reserve		Accumulated deficit		Total
Balance at 1 April 2009	1 132				44 990				(119)			4 440		21 588		(19 968)		52 063
Total comprehensive income for the half year
Loss for the period	-			-					-			-		-		(1 134)		(1 134)
Other comprehensive income
Foreign currency translation differences			-	-					28			-		-		-		28
Net change in fair value of available-for-sale financial assets, net of tax			-	-					-			-		38 774		-		38 774
Total other comprehensive income			-	-					28			-		38 774		-		38 802
Total comprehensive income for the half year			-	-					28			-		38 774		(1 134)		37 668
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Issue of ordinary shares	43			1 459				-				-		-		-		1 502
Share issue costs	-			(81)				-				-		-		-		(81)
Share based payment transactions	-			-				-				(629)		-		-		(629)
Total contributions by and distributions to owners for the half year	43			1 378				-				(629)		-		-		792
Balance at 30 September 2009	1 175			46 368				(91)				3 811		60 362		(21 102)		90 523
Total comprehensive income for the half year
Profit for the period	-			-				-				-		-		23 232		23 232
Other comprehensive income
Foreign currency translation differences			-	-				(32)				-		-		-		(32)
Net change in fair value of available-for-sale financial assets, net of tax			-	-				-				-		(34 299)		-		(34 299)
Total other comprehensive income			-	-				(32)				-		(34 299)		-		(34 331)
Total comprehensive income for the half year			-	-				(32)				-		(34 299)		23 232		(11 099)
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Issue of ordinary shares	42			1 174				-				-		-		-		1 216
Share issue costs	-			(132)				-				-		-		-		(132)
Shares cancelled	(85)			(1 690)				-				-		-		-		(1 775)
Dividends to equity holders	-			-				-				-		-		(36 193)		(36 193)
Share based payment transactions	-			-				-				1 315		-		-		1 315
Total contributions by and distributions to owners for the half year	(43)			(648)				-				1 315		-		(36 193)		(35 569)
Balance at 31 March 2010	1 132			45 720				(123)				5 126		26 063		(34 063)		43 855
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY (continued)
US$'000		Share Capital				Share premium					Foreign currency translation reserve		Share option reserve		Fair value reserve		Accumulated deficit		Total
Balance at 1 April 2010		1 132				45 720					(123)		5 126		26 063		(34 063)		43 855
Total comprehensive income for the half year
Profit for the period	-			-						-			-		-		18 186		18 186
Other comprehensive income
Foreign currency translation differences			-			-				(17)			-		-		-		(17)
Net change in fair value of available-for-sale financial assets, net of tax			-			-				-			-		(21 397)		-		(21 397)
Total other comprehensive income			-			-				(17)			-		(21 397)		-		(21 414)
Total comprehensive income for the half year			-			-				(17)			-		(21 397)		18 186		(3 228)
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Dividends to equity holders	-						-				-		-		-		(27 247)		(27 247)
Share based payment transactions	-						-				-		(90)		-		-		(90)
Total contributions by and distributions to owners for the half year	-						-				-		(90)		-		(27 247)		(27 337)
Balance at 30 September 2010	1 132						45 720				(140)		5 036		4 666		(43 124)		13 290

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

US$'000	Note	Reviewed 6 months ended 30 September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
Cash flows from operating activities
Cash flows from operating activities	15.1	(1 076)	(1 739)	24 727
Finance expense		-	-	-
Finance income		1	1	4
Net cash (used in)/ from operating activities		(1 075)	(1 738)	24 731
Cash flows from investing activities
Additions to plant and equipment		-	-	(3)
Disposal of available-for-sale financial assets	7	-	-	10 253
Proceeds on disposal of plant and equipment		22	-	15
Net cash from investing activities		22	-	10 265
Cash flows from financing activities
Proceeds from issue of shares		-	1 502	2 717
Cost of share issues		-	(81)	(212)
Dividend paid		-	-	(36 193)
Net cash from/ (used in) financing activities		-	1 421	(33 688)
Net decrease/(increase) in cash and cash equivalents		(1 053)	(317)	1 308
Cash and cash equivalents at beginning of period		2 522	1 086	1 086
Effect of exchange rate fluctuations on cash held		(44)	16	128
Cash and cash equivalents at end of period		1 425	785	2 522

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1.             Reporting Entity

Niger Uranium Limited, formerly known as UraMin Niger Limited, (the "Company") was incorporated in the British Virgin Islands 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 Walkers Chambers, P.O. Box 92, Road Town, Tortola, British Virgin Islands. The condensed consolidated financial statements of the Company as at and for the 6 months ended 30 September 2010 comprises the results of the Company and its subsidiaries (together referred to as the "Group").

The Group is primarily involved in seeking out mining opportunities around the world as an active investor and project developer. After its formation, the Group acquired exploration licences in the state of Niger.

2.             Basis of preparation

a)             Statement of compliance

The condensed consolidated financial statements have been prepared in accordance with the International Accounting Standard on Interim Financial Reporting (IAS 34).

b)            Basis of measurement

The condensed consolidated financial statements have been prepared on a historical cost basis except for available-for-sale financial assets which are stated at fair value.

c)             Functional and presentation currency

Items included in the condensed consolidated financial statements of each entity in the Group are measured using the currency that best reflects the economic substance of the underlying events and circumstances relevant to that entity ("the functional currency"). These condensed consolidated financial statements are presented in United States Dollars, which is the Company's functional and presentation currency.  All financial information presented in United States Dollars has been rounded to the nearest thousands.

d)            Use of estimates and judgements

The preparation of the condensed consolidated financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. The Group makes estimations and assumptions concerning the future. The resulting accounting estimates will by definition, rarely equal the related actual results.

Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant risk and effect on the carrying amounts recognised in the condensed consolidated financial statements within the next financial year, are the following:

·    intangible assets

·    fair value of available-for-sale financial assets

·    measurement of share-based payments

3. Significant accounting policies

                         The accounting policies adopted are consistent with those described in the annual financial statements for the year ended 31 March 2010.

                         4.             Financial risk management

The Group has exposure to the following risks from its use of financial instruments:

·    Credit risk

·    Liquidity risk

·    Market risk.

This note presents information about the Group's exposure to each of the above risks, the Group's objectives, policies and processes for measuring and managing risk, and the Group's management of capital. Further quantitative disclosures are included throughout these condensed consolidated interim financial statements.

The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance. The Group does not use derivative financial instruments to hedge any risk exposures and does not hedge its exposure to foreign currency risk.

Risk management is carried out by the finance department under policies approved by the Board of Directors. The finance department identifies and evaluates financial risks in close co-operation with the Group's operating units. The Board provides principles for overall risk management.

Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group has no significant concentrations of credit risk. The Group has policies that limit the amount of credit exposure to any one financial institution.

Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Prudent liquidity risk management includes maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Management monitors the rolling forecasts of the Group's liquidity reserve on the basis of expected cash flows.

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 income 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.

(i) Foreign exchange risk

The Group, operating internationally, is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US Dollar, British Pounds Sterling, Franc FCA, South African Rand and in previous years Canadian Dollars. Foreign exchange risk arises from future commercial transactions, recognised assets, liabilities and net investments in foreign operations. The Group, however, does not hedge its exposure to foreign currency exchange risk.

The Group has certain investments in foreign operations, whose net assets are exposed to foreign exchange risk.

(ii) Equity price risk

The Group is exposed to equity securities price risk because of investments held by the Group and classified as available-for-sale. The Group's equity investments are publicly traded. The Group is exposed to commodity price risk.

(iii) Interest rate risk

As the Group has interest bearing assets, a portion of the Groups' income and operating cash flows have interest rate risks. When placing funds on deposit, management endeavours to obtain the best interest rates available.

Capital risk management

The Board's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board monitors the cash outflows via budgets and forecasts so as to safeguard the Group's ability to continue as a going concern. The Board also sets and monitors the level of dividends to ordinary shareholders.

The Board's target is for all employees and directors of the Group to hold a maximum of 10% of the Company's ordinary shares. At present the employees and directors hold less than two per cent. of the Company's ordinary shares. Employees and directors are awarded share options in terms of the Share Option Plan.

The Group's income and operating cash flows are substantially independent of changes in market interest rates. At the period end the Group had no debt (2009: Nil debt). The Group does not have a defined share buy-back plan.

In order to maintain or adjust the capital structure, the Group may issue new shares or sell assets to generate cash.

There were no changes in the Group's approach to capital management during the period under review.

Neither the Company, nor any of its subsidiaries are subject to externally imposed capital requirements.

5. Segment information

The Group has three reportable segments, as described below, which are the Group's strategic business units. The strategic business units offer different services, and are managed separately because they require different strategies. For each of the strategic business units, the Board of Director reviews internal management reports on at least a quarterly basis.

The following summary describes the operations in each of the Group's reportable segments:

Exploration                           Includes obtaining licences and exploring these licence areas.

Investment                            Includes making investments based on group investment criteria

Corporate office                   Includes all group administration and procurement

There are no other operations that meet any of the quantitative thresholds for determining reportable segments in 2010 or 2009.

There are varying levels of integration between the Exploration, Investment and Corporate Office reportable segments. This integration includes shared administration and procurement services. The accounting policies of the reportable segments are the same as described in notes 2 and 3.

Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before income tax, as included in the internal management reports that are reviewed by the Group's CEO. Inter-segment pricing is determined on an arm's length basis.

Operating segments
US$'000
	Exploration			Investment			Corporate Office			Total
	Reviewed	Audited	Reviewed	Reviewed	Audited	Reviewed	Reviewed	Audited	Reviewed	Reviewed	Audited	Reviewed
	30 Sept 2010	31 March 2010	30 Sept 2009	30 Sept 2010	31 March 2010	30 Sept 2009	30 Sept 2010	31 March 2010	30 Sept 2009	30 Sept 2010	31 March 2010	30 Sept 2009
Revenues from external customers	-	-	-	-	-	-	-	-	-	-	-	-
Revenues from transactions with operating segments of the same entity	-	-	-	-	-	-	-	-	-	-	-	-
Finance income	-	-	-	-	-	-	1	4	1	1	4	1
Depreciation	(51)	(118)	(59)	-	-	-	(36)	(88)	(45)	(87)	(206)	(104)
Reportable segment (loss)/ profit before tax	(308)	(491)	(238)	19  255	25 940	-	(761)	(3 351)	(896)	18 186	22 098	(1 134)
Other material non-cash items:
-       Share based payments	-	-	-	-	-	-	-	1 116	-	-	1 116	-
-       Warrant option expense	-	-	-	-	-	-	-	50	-	-	50	-
-       Warrant option reversal on expiry	-	-	-	-	-	-	(90)	(628)	(629)	(90)	(628)	(629)
Reportable segment assets	4 911	5 062	5 133	6 694	36 082	80 634	1 912	2 798	4 955	13 517	43 942	90 722
Capital expenditure	-	-	-	-	-	-	-	(3)	-	-	(3)	-
Reportable segment liabilities	(150)	(74)	(84)	-	-	-	(77)	(13)	(115)	(227)	(87)	(199)

Geographic information
For the period ended 30 September 2010, exploration activities were conducted in both South Africa and Niger, the investment activities are controlled in the British Virgin Islands and administration is conducted from the South African office.
In presenting information based on the geographic information, segment assets are based on the geographical location of the assets.
US$'000														-
	Reviewed 6 months ended 30 September 2010			Reviewed 6 months ended 30 September 2009				Audited Year ended 31 March 2010
	Revenue		Non-current assets	Revenue		Non-current assets		Revenues		Non-current assets
British Virgin Islands	-		-	-		80 634		-		-
Niger	-		4 756	-		4 997		-		5 062
South Africa	-		134	-		251		-		57
	-		4 890	-		85 882		-		5 119
6. Intangible assets
US$'000					Reviewed 6 months ended 30 September 2010		Reviewed 6 months ended 30 September 2009		Audited Year ended 31 March 2010
Balance at beginning of period					4 825		4 825		4 825
Amortisation and impairments					(120)		-		-
Balance at end of period					4 705		4 825		4 825
The Group holds eight uranium exploration licences in the Republic of Niger. Due to ongoing security concerns in the northern licence areas, the Group has impaired these licences. Drilling on the two north-central licence commenced after the period end and is detailed in the Subsequent Events Note.

7. Investments
US$'000		Reviewed 6 months ended 30 September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
Financial assets available-for-sale
Listed securities: Kalahari Minerals plc		6 694	80 634	36 082
Unlisted securities: UrAmerica Limited		-	-	-
Carrying amount		6 694	80 634	36 082
Current portion		6 694	-	36 082
Non-current portion		-	80 634	-

The summary of financial assets available-for-sale is as follows: US$'000		Reviewed 6 months ended 30  September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
Balance at beginning of period		36 082	41 860	41 860
Additions		-	-	-
Partial disposal		(7 992)	-	(10 253)
Impairments		-	-	-
Fair value adjustments		(21 396)	38 774	4 475
Realised		(19 255)	-	(25 940)
Unrealised		(2 141)	38 774	30 415
Carrying  amount		6 694	80 634	36 082

Listed securities - Kalahari Minerals Plc ("Kalahari Minerals")

On 1 April 2009, the available-for-sale financial assets - listed securities comprised 27.68 million ordinary shares in Kalahari Minerals (which equated to approximately 15.5 % (and voting power) of the shares in issue) and are traded on AIM, a market operated by the London Stock Exchange. Kalahari Minerals has a portfolio of uranium, copper and base metal interests in western and eastern central Namibia. Its key investment is its 40% holding in Australian Stock Exchange and Toronto Stock Exchange listed Extract Resources Limited ("Extract"), which is developing the Husab Uranium Project, strategically located directly south of Rio Tinto's producing Rossing Mine.

During the year ended 31 March 2009 and into the 2010 financial year, the value of Kalahari Minerals continued to increase. On 16 February 2010, the Board announced a partial disposal of 14 million of the Kalahari Minerals shares at £1.65 per share and a dividend to all shareholders of the £23.1 million (US$ 36.193 million) proceeds.  

On 7 May 2010, at the Annual General Meeting, the proposed distribution of 10.912 million Kalahari Minerals shares to shareholders by means of a dividend in specie was unanimously approved.

At the 30 September 2010 period end, the Group held 2.768 million shares in Kalahari Minerals. After the period end these shares were disposed of as detailed in Note 16 Subsequent Events herein.

The movement in the listed securities - Kalahari Minerals is summarised as follows:
US$'000		Reviewed 6 months ended 30  September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
Balance at beginning of period		36 082	41 860	41 860
Fair value adjustment		(1 923)	38 774	29 699
Carrying amount before dividend/ disposal		34 159	80 634	71 559
Disposal of 14million Kalahari Minerals Plc shares		-	-	(36 193)
Cost		-	-	(10 253)
Realised fair value adjustment		-	-	(25 940)
Carrying value after disposal		-	-	35 366
Dividend in specie - 10.912million Kalahari Minerals Plc shares		(27 247)	-	-
Cost		( 7 992)	-	-
Realised fair value adjustment		(19 255)	-	-
Carrying value after disposal		6 912	-	-
Fair value adjustment		(218)	-	716
Balance at the end of period		6 694	80 634	36 082

The value of the listed securities available-for-sale financial assets is estimated by reference to the published closing price quotation of the London Stock Exchange at the reporting date.

After approval by shareholders on 7 May 2010 a dividend in specie of 10.912 million Kalahari Minerals shares was paid to shareholders at that date.

During the period under review, the Group has disposed of 10.912 million shares (year ended 31 March 2010: Disposed of 14 million shares), the impact of which is shown herein.

The significant increase in the trading price of the Kalahari Minerals share price has continued and at the period end the unrealised fair value is US$ 4.666million (year ended 31 March 2010: US$ 26.063million)

At the period end, the remaining 2.768 million Kalahari Minerals shares were still held by the Group. These shares have subsequently been disposed, as detailed in Note 16 Subsequent Events herein.

Unlisted securities: UrAmerica Limited
The movement in the unlisted securities is summarised as follows:
US$'000		Reviewed 6 months ended 30  September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
Balance at beginning of period		-	-	-
Additions		-	-	-
-       paid from cash reserves		-	-	-
-       issue of shares in Niger Uranium Limited		-	-	-
Unrealised foreign exchange translation differences		-	-	-
Impairment		-	-	-
Balance at end of period		-	-	-

In addition to the 4 421 000 shares in UrAmerica Limited, the Group has been issued with 4 421 000 warrants to subscribe for a further 4 421 000 new UrAmerica Limited ordinary shares at an exercise price of US$ 1.639 per new UrAmerica ordinary shares and which was exercisable at any time before 20 April 2010.

Based on the UrAmerica Limited financial statements, due to that company's financial viability, at the year ended 31 March 2009, the Group impaired the carrying amount by US$ 4.299 million. This impairment combined with the unrealised foreign exchange differences has resulted in the unlisted financial assets being carried at zero value.  As a consequence of the impairment of the carrying value of the ordinary shares, no value has been ascribed to the warrant options.

8. Receivables
US$'000	Reviewed 6 months ended 30  September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
Deposits	152	340	160
Other prepayments	32	40	30
Other receivables	51	150	29
Loan to Pangea Exploration (Proprietary) Limited	273	-	-
Prepayment - URU Henkries Limited	-	3 525	-
	508	4 055	219

Loan to Pangea Exploration (Proprietary) Limited US$'000	Reviewed 6 months ended 30  September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
Prepayment
Paid in cash	273	-	-

As a result of a delay in settling the terms of the nickel Joint Venture Agreement ("JVA") and in order to continue the initial work programme, the Group has advanced a loan of ZAR 2 million (US$273 045) to Pangea Exploration (Proprietary) Limited. In terms of the JVA, the loan amount will from part of the initial contribution to the joint venture. As announced on 5 October 2010, the JVA was signed and details are noted in Note 16 Subsequent Events herein.

Prepayment -  URU Henkries Limited
Details of the prepayment on the acquisition of an investment in URU Henkries Limited is as follows:
US$'000	Reviewed 6 months ended 30  September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
Prepayment
Paid in cash	-	1 750	-
Issue of Niger Uranium Limited shares	-	1 775	-
	-	3 525	-

As disclosed previously, on 8 October 2009 as this approval from the South African Minister of Minerals had not been received, and in agreement with the vendors of Namakwa Uranium, the Board decided not to extend further the long-stop date on the proposed acquisition of URU Henkries Limited. Accordingly, the Share Purchase Agreement lapsed and was of no force and effect and no party has any rights or any claims against the other of them arising from such failure of the acquisition to complete.

Accordingly, the Board instructed the escrow agent to return the cash consideration of US$ 1.75 million to the company and the consideration shares were held in treasury until 22 December 2009, when they were repurchased and cancelled.

9. Share capital and premium
Ordinary shares
		Number of shares	Share capital US$'000	Share premium US$'000	Total US$'000
Authorised share capital:
300 000 000 shares of US$ 0.01 each		300 000 000	3 000	-	3 000
Issued share capital:
113 210 056 shares of US$ 0.01 each		113 210 056	1 132	45 720	46 852
Ordinary shares		Number of shares	Share capital US$'000	Share premium US$'000	Total US$'000
Balance at 31 March 2009		113 164 306	1 132	44 990	46 122
Private placement - July 2009		4 339 994	43	1 459	1 502
Share issue expenses		-	-	(81)	(81)
Balance at 30 September 2009		117 504 300	1 175	46 368	47 543
Share options exercised  - October 2009		4 205 756	42	1 174	1 216
Repurchase and cancellation of Henkries shares		(8 500 000)	(85)	(1 690)	(1 775)
Share issue expenses		-	-	(132)	(132)
Balance at 31 March and 30 September 2010		113 210 056	1 132	45 720	46 852

Issue of shares for the acquisition of URU Henkries Limited- repurchase and cancellation

In the prior year, pending the fulfilment of certain conditions precedent, both the cash payment of US$ 1.75 million and 8.5 million issued ordinary shares in the company were placed with an escrow agent. As the conditions precedent was not fulfilled by 30 September 2009, on 21 October 2009, the company terminated the agreement and the shares were returned to the company and held in treasury. On 22 December 2009, after receiving permission from the company nominated advisor and the London Stock Exchange, the shares were repurchased and cancelled.

As noted herein, the Group has terminated the agreement and at 31 March 2010 no further consideration was payable.

Issued shares

All issued shares are fully paid up.

Unissued shares

In terms of the BVI Business Companies Act, the unissued shares are under the control of the directors.

Dividends
The following dividends were declared and paid by the Group:
US$'000		Reviewed 6 months ended 30  September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
31.97 cents per qualifying ordinary share		-	-	36 193
Dividend in specie of 10.912 million Kalahari Minerals shares		27 247	-	-
		27 247	-	36 193

At the Annual General Meeting held on 7 May 2010, the shareholders approved a dividend in specie of 9.63 Kalahari Minerals shares per 100 Niger Uranium Limited shares held at that date.

10. Reserves
US$'000			Note			Reviewed 6 months ended 30  September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
Foreign currency translation reserve						(140)	(92)	(123)
Share option reserve			10.1			5 036	3 811	5 126
Fair value reserve			10.2			4 666	60 362	26 063
						9 562	64 081	31 066
10.1 Share option reserve
US$'000
The movement in the share option reserve is detailed below:					Share Options		Warrant options	Total
Balance at 31 March 2009					3 651		789	4 440
Warrant option reversal on expiry					-		(629)	(629)
Balance at 30 September 2009					3 651		160	3 811
Share and warrant option expense					1 264		51	1 315
Balance at 31 March 2010					4 915		211	5 126
Warrant option reversal on expiry					-		(90)	(90)
Balance at 30 September 2010					4 915		121	5 036

Share Options

The Niger Uranium Limited Share Option Plan 2008 is administered by the Board of Directors, which determines individual eligibility under the plan the number of shares reserved for optioning to each individual.

Warrant Options

In the prior financial year's warrant options were issued in respect of capital raising. A total of 250 000 warrant options lapsed during the period under review. As a result of the lapsing of these warrant options a reversal of the expense in the previous years of US$ 90 000 has been taken to profit or loss.

10.2 Fair value reserve
US$'000	Reviewed 6 months ended 30  September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
The fair value reserve includes the cumulative net change in fair value of available-for-sale investments until the investment is derecognised.
Opening balance	26 063	21 588	21 588
Movement for the period	(21 397)	38 774	4 475
Closing balance	4 666	60 362	26 063

11. Operating profit/(loss)
US$'000		Reviewed 6 months ended 30  September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
The following items have been charged in arriving at the operating profit/(loss) for the period
Auditors remuneration		50	52	79
Directors fees		136	190	406
-       Fees for services as director		35	47	194
-       Basic salary		88	119	159
-       Expense allowance		13	24	53
Legal fees		101	32	99
Operating lease payments		39	46	88
Depreciation		87	104	206
Fair value reserve realised on disposal of available-for-sale investment		(19 255)	-	(25 940)
Foreign exchange loss/(gain)
-realised		-	6	(46)
-unrealised		(44)	-	129
Impairment of intangible assets		120	-	-
(Gain)/loss on disposal of plant and equipment		(3)	-	7
Salaries and wages		172	367	1 871
-       Share options expensed - Directors		-	-	714
-       Share options expensed - staff		-	-	550
-       Staff cost - salaries		172	367	607
Warrant option expense		-	-	50
Warrant options reversal on expiry		(90)	(629)	(628)

12. Income tax expense and deferred taxation

No taxation has been provided due to calculated losses in the current and prior year.

The British Virgin Islands under the IBC imposes no corporate taxes or capital gains. However, the Company

as a Group may be liable for taxes in the jurisdictions where it is develops mining properties.

No deferred tax asset has been recognised because there is insufficient evidence of the timing of suitable

future profits against which they can be recovered.

13. Earnings/ (loss) per share		Reviewed 6 months ended 30 September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
The basic earnings/(loss) per share is calculated using:
Profit/(loss) for the period (US$'000)		18 186	(1 134)	22 098
Weighted average number of shares in issue		113 210 056	114 537 439	111 276 721
Basic earnings/(loss) per share (US cents)		16.1	(1.0)	19.8
Reconciliation of the weighted average number of ordinary shares in issue:
Number of ordinary shares at beginning of the period		113 210 056	113 164 306	113 164 306
Share issue - 30 July 2009 (4 339 994 shares)		-	1 274 347	2 504 935
Share issue - 27 August 2009 (531 703 shares)		-	98 786	269 493
Exercise of options - 18 November 2009 (4 205 756 shares)		-	-	1 532 508
Cancellation of Henkries shares - 22 December 2009 (8 500 000 shares)		-	-	(6 194 521)
		113 210 056	114 537 439	111 276 721
The diluted earnings/(loss) per share is calculated using:
Profit/(loss) for the period (US$'000)		18 186	(1 134)	22 098
Reconciliation of the diluted weighted average ordinary shares in issue:
Weighted average number of shares in issue		113 210 056	114 537 439	111 276 721
Effect of share options on issue		4 969 067	9 136 067	5 702 400
Effect of warrant options on issue		100 000	250 000	350 000
Weighted average diluted number of ordinary shares		118 279 123	123 923 506	117 329 121
Diluted earnings/(loss) per share (US cents)		15.4	(1.2)	18.8

14.Contingent liabilities and commitments
US$'000		Reviewed 6 months ended 30 September 2010	Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
Operating lease commitments
The future minimum lease payments under non-cancellable leases are:
Less than 1 year		82	49	50
Later than 1 year but less than 5 years		155	12	-
More than 5 years		-	-	-
		237	61	50

The operating leases relate to two leases of premises in Sandton, both of which commenced in December 2007. The Sandton premises lease expires in December 2010, and a three year extension has been agreed. The initial lease payment amounts to US$ 5 340 per month and will escalate by 8% per annum. The Morningside premise lease expires on 30 November 2010 and a one year extension has been negotiated.

Capital commitment			Reviewed 6 months ended 30 September 2010		Reviewed 6 months ended 30 September 2009		Audited Year ended 31 March 2010
			Cash US$'000	Shares 000's	Cash US$'000	Shares 000's	Cash US$'000	Shares 000's
Maximum payable to:
Nickel Joint Venture			3 600	-	-	-	-	-

Capital commitment - Nickel Joint Venture

Subsequent to the period end, the Board announced that it had signed a joint venture agreement (the "JVA") with

Southern Africa Nickel Limited ("SAN"). Under the terms of the JVA, the Group and SAN have established a joint venture (the "Joint Venture") to develop a portfolio of nickel projects in Southern Africa which have the potential for large, shallow, low-grade sulphide-nickel deposits. The Company has committed to provide funding to the Joint Venture of, in aggregate, up to US$3.6 million over the next 20 months.

Deferred consideration			Reviewed 6 months ended 30 September 2010		Reviewed 6 months ended 30 September 2009		Audited Year ended 31 March 2010
			Cash US$'000	Shares 000's	Cash US$'000	Shares 000's	Cash US$'000	Shares 000's
Maximum payable to:
Namakwa Uranium Limited vendors			-	-	5 500	1 500	-	-

Deferred consideration - Namakwa Uranium Limited vendors

In the prior period and year, in terms of the URU Henkries Limited Share Purchase Agreement, there was a deferred consideration payable to the vendors based on the company establishing a JORC Code compliant 'Indicated' and 'Measured' uranium resource for the Henkries Project. The maximum additional consideration amounted to a further US$ 5.5 million in cash and a further 1.5 million new Niger Uranium Limited ordinary shares.

The URU Henkries Share Purchase Agreement was terminated on 8 October 2009 and accordingly no deferred consideration is payable.

15. Notes to the statement of cash flows
15.1 Cash flows from operating activities
US$'000		Reviewed 6 months ended 30 September 2010		Reviewed 6 months ended 30 September 2009	Audited Year ended 31 March 2010
Profit/(loss) before income tax		18 186		(1 134)	22 098
Adjusted for:
-       Depreciation		87		104	206
-       Fair value reserve realised on disposal of available-for-sale investment			(19 255)	-	-
-       Share based payments		-		-	(735)
-       Warrant option expense		-		-	50
-       Warrant option reversal on expiry		(90)		(628)	(628)
(Gain)/loss on disposal of property and equipment		(3)		-	7
Impairment of intangible assets		120		-	-
Net finance income		(1)		(1)	(4)
Unrealised foreign exchange loss/(gain)		29		(9)	81
		(927)		(1 668)	21 075
Movements in working capital:
(Increase)/ decrease in receivables		(289)		(17)	3 818
Increase/ (decrease) in trade and other payables		140		(54)	(166)
Cash flows from operating activities		(1 076)		(1 739)	24 727

16. Subsequent events

(i)            Nickel Joint Venture

On 5 October 2010, the Board announced that it had established a joint venture (the "Joint Venture") with Southern African Nickel ("SAN"), the joint owner and current developer of a portfolio of large nickel projects in Southern Africa. The Company has committed to provide funding to the Joint Venture of, in aggregate, up to US$3.6 million over the next 20 months.

The Company believes that the Joint Venture's nickel projects have potential to host large low-grade, economic, open-pittable sulphide-nickel mineralization.

The flagship target is the Burgersfort nickel project in the Mpumalanga Province of South Africa, which is currently held in a joint venture between SAN and BSC Resources (Proprietary) Limited, a South African Black Economic Empowerment partner.

Burgersfort was previously explored by both Goldfields Mining and Development and by Falconbridge Ventures of Africa. Preliminary results based on previous data and recent geophysics have identified a number of shallow nickel targets and three deeper targets for massive sulphide mineralization.

Further large nickel targets are being pursued by the Joint Venture in the Bushveld region of South Africa.

The SAN portfolio also includes purchase options over nickel projects in Zimbabwe, previously explored by Falconbridge, where a large, low-grade surface deposit is targeted, and other mine dump projects across Southern Africa.

The implementation of the Joint Venture's exploration programmes, sampling and metallurgical evaluation has been sub-contracted to Pangea Exploration (Proprietary) Limited ("Panex"), a South African-based mineral resource exploration company that, over the past 20 years, has successfully discovered and developed precious, base and industrial minerals mining projects in Southern Africa.

(ii)           2010 Exploration Drilling Campaign commences on Niger Licences

On 15 October 2010, the Group announced the commencement of its 2010 exploration drilling campaign on the Company's wholly-owned In Gall and Irhazer uranium licenses in Niger.

An exploration programme to evaluate three previously identified uranium targets (at an estimated cost of US$650,000) commences on 15 October 2010.

A combination of tricone and diamond drilling will initially focus on the Aboye target, located in the north-eastern portion of the In Gall license area. Five tricone boreholes are to be drilled, totalling approximately 1,250 linear metres.

The objective at Aboye are to delineate a 3km² zone that could contain a uranium mineralisation trap and to examine the intersection (6m@127ppm U₃O₈) of the borehole AB003 drilled in 2007.

The second drill target is at Akenzigui in the south-eastern portion of the Irhazer license. The drilling of more than 2,000 metres is expected to commence on 15 November 2010.

Geological faulting and doming at the Akenzigui target resembles that of the Azelik Mine, situated 40 km north, where an international consortium led by China Nuclear International Uranium Corporation and the Niger Government is developing a deposit of approximately 15,000 tonnes U₃O_8.

The third exploration target will, at this stage only, be the mapping of certain areas in the north of the Irhazer permit, where radon anomalies were identified by the company in the past.

The prolongation, by the Niger Government, of the Company's In Gall and Irhazer permits by 20 months with effect from 18 August 2010.

Work on the In Gall and Irhazer license areas is unaffected by the security problems experienced further north in Niger. Both In Gall and Irhazer licences are located close to the military base at Agadez.

(iii)          Share options

On 22 October 2010, the Company announced that, on the recommendation of the Company's Remuneration Committee, the Company has agreed to cancel 600,000 share options, previously issued at a weighted average exercise price of 39.2 pence, and has granted options over 4,500,000 ordinary shares of US$0.01 each in the capital of the Company ("Ordinary Shares") to directors of the Company at an exercise price of 4.88 pence per Ordinary share, this being the closing price on 21 October 2010.The directors to whom options have been granted are as follows:

·      An option over 1,500,000 ordinary shares to Paul Loudon, Non-Executive Chairman (total 1,500,000 ordinary Shares under option following this grant); and

·      An option over 1,500,000 ordinary shares to Gordon Cassidy, Finance Director, (total 1,500,000 ordinary shares under option following this grant); and

·      An option over 1,500,000 ordinary shares to John Lynch, Non-Executive Director, (total 1,500,000 ordinary Shares under option following this grant).

In addition, the Company has agreed to cancel 2,600,000 share options, previously issued at a weighted average exercise price of 48.0 pence, and has granted options over 3,450,000 Ordinary Shares to management, employees and consultants of the Company at an exercise price of 4.88 pence per Ordinary Share.

All the options granted above will vest to each option holder in three equal annual installments commencing on the date of grant and will expire unless exercised on or before 21 October 2020.

(iv)          Disposal of Kalahari Minerals Plc shares

On 11 November 2010, the Company announced that it had disposed by way of sale through the market of its remaining minority interest in Kalahari Minerals Plc ("Kalahari Minerals") for a total cash consideration net of expenses of £5.646 million. The carrying amount of the Kalahari shares as at 31 March 2010, the date of the last published statement of financial position of the Company, was US$7.3 million. The disposal proceeds will be used by the Company for general working capital purposes and to fund the development of its main projects.

A copy of this announcement is available from the Company's website, being www.niger-uranium.com.

ENDS

 

END

 

 

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