URU Metals narrows losses as it works towards revenue

Pre-revenue company URU Metals announced its interim results for the six months ended 30 September on Monday, reporting an operating loss of $0.41m, narrowing from $0.54m a year earlier.

The AIM-traded firm said that operating loss was made up entirely of administrative expenses.

Looking at its total comprehensive loss for the period, it managed to narrow that figure to $0.28m, compared to $0.98m in the prior comparative period.

That was thanks to an unrealised gain of $0.14m on available-for-sale financial assets, offset slightly by a negative $0.02m effect of foreign exchange.

Non-executive chairman Jay Vieira said that during the period, the equity market for the mining industry showed signs of improvement, due to improved commodity prices on the back of concerns relating to long-term supply.

He explained that nickel in particular reached a high of more than $7 per pound.

“Although prices have subsequently softened, the long term outlook for nickel remains bullish.”

Looking ahead, Vieira said that URU was continuing to believe that the long-term fundamentals of the base minerals industries remained positive, with the board set to “work hard” in the coming year to unlock the value of its projects for shareholders.

“The company maintains its core strategy to develop its nickel assets, as the board anticipates growing demand and price appreciation for nickel in the short to medium term.”