-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PKotQydPFVAjgAzV1wrTpFOY+WIcSfh+YuaYCMm10RvzWLfQIhOjMbiC+FPKVyA2 txb0c89dddIYisOf1EM+0g== 0001157523-07-008169.txt : 20070809 0001157523-07-008169.hdr.sgml : 20070809 20070809160303 ACCESSION NUMBER: 0001157523-07-008169 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070809 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070809 DATE AS OF CHANGE: 20070809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: URANIUM RESOURCES INC /DE/ CENTRAL INDEX KEY: 0000839470 STANDARD INDUSTRIAL CLASSIFICATION: METAL MINING [1000] IRS NUMBER: 752212772 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33404 FILM NUMBER: 071040369 BUSINESS ADDRESS: STREET 1: 12750 MERIT DRIVE STREET 2: SUITE 720 CITY: DALLAS STATE: TX ZIP: 75251 BUSINESS PHONE: 9723877777 MAIL ADDRESS: STREET 1: 12750 MERIT DRIVE STREET 2: SUITE 720 CITY: DALLAS STATE: TX ZIP: 75251 8-K 1 a5468549.txt URANIUM RESOURCES, INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 9, 2007 URANIUM RESOURCES, INC. ----------------------- (Exact name of registrant as specified in its charter) Delaware 0-17171 75-2212772 -------- ------- ---------- (State or other jurisdiction (Commission File Number) (I.R.S. Employer of incorporation) Identification No.) 650 South Edmonds, Suite 108, Lewisville, TX 75067 (Address of principal executive offices) Zip Code (972) 219-3330 -------------- (Registrant's telephone number, including area code) (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 8.01. Other Events On August 9, 2007, the Registrant issued a press release relating to financial results for the second quarter of 2007. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. Item 9.01. Financial Statements and Exhibits Exhibit 99.1 Press Release dated August 9, 2007 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. URANIUM RESOURCES, INC. Date: August 9, 2007 /s/ Thomas H. Ehrlich -------------------------------------------- Thomas H. Ehrlich Vice President and Chief Financial Officer Exhibit Index Exhibit Number Description - -------------- ----------- Exhibit 99.1 Press Release dated August 9, 2007 EX-99.1 2 a5468549ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Uranium Resources, Inc. Reports $8.0 Million in Revenue and $1.2 Million in Net Income for Second Quarter 2007 Results -- Production more than doubles from prior year quarter to 136,000 pounds U3O8 -- Average cost of production falls below $30 per pound -- Reports $0.02 net earnings per diluted share LEWISVILLE, Texas--(BUSINESS WIRE)--Aug. 9, 2007--Uranium Resources, Inc. (NASDAQ: URRE) ("URI"), a uranium exploration, development and mining company, announced today its financial results for the second quarter of 2007 which ended June 30, 2007. Revenue for the second quarter of 2007 more than quadrupled to $8.0 million from $1.8 million in the second quarter of 2006. During the quarter, URI sold 114,400 pounds of uranium, at an average sales price per pound of $69.63 compared with 64,400 pounds in last year's quarter at an average sales price per pound of $28.67. Sales were also up from the 79,700 pounds sold at an average price of $57.41 per pound in the trailing first quarter this year. Net income for the second quarter of 2007 was $1.2 million, or $0.02 per diluted share, compared with a net loss of $2.1 million, or $0.04 per diluted share, for the same period in 2006. The average cost of pounds sold in the second quarter of 2007 was $29.44 compared with $41.09 in the trailing first quarter and $36.77 in the second quarter of 2006. Finished uranium inventory was 89,900 pounds at June 30, 2007, held at an average cost of $27.72 per pound. URI produced 135,800 pounds of uranium during the second quarter of 2007, a 129% increase over the 59,400 pounds produced during last year's second quarter and a 24.8% sequential improvement over the 109,000 pounds produced during the first quarter this year. Production costs for the quarter were $27.78 per pound compared with $43.17 per pound in the same quarter of 2006. Increased production from the wellfields at the Company's Kingsville Dome property has resulted in lower operating and capital costs because of better ore trend, higher quality ore, and ore characteristics well suited for in-situ recovery mining techniques. Production for the second quarter of 2007 was comprised of 20,400 pounds from Vasquez and 115,400 pounds from Kingsville Dome. Production in 2006 included 35,900 pounds from Vasquez and 23,500 pounds from Kingsville Dome, which had just commenced production during last year's second quarter. The cash balance at June 30, 2007 was $16.5 million, essentially unchanged from the balance of $16.6 million at the end of March 2007, as the Company experienced significantly higher selling prices due to its market-related contracts along with reduced production costs which offset increased capital investment and expenses. Regarding the joint venture with Itochu Corporation to develop the Church Rock property in New Mexico, the parties have extended the preliminary investment decision until February 1, 2008. Dave Clark, President of Uranium Resources, said, "Texas is our bridge to New Mexico as we raise the experience level of our team and generate cash to cover our cost structure. Production was strong for the quarter and production costs have fallen to the $25 to $30 range, as expected. Wellfield 14 production is progressing nicely, and we hope to have the next wellfield online by the end of the year." Production & Sales Summary Table Q2 2007 Q1 2007 Q4 2006 Q3 2006 Q2 2006 Pounds U3O8 produced 135,900 109,000 72,000 72,600 59,400 Production cost per pound $ 27.78 $ 34.44 $ 46.07 $ 59.14 $ 43.17 Pounds U3O8 sold 114,400 79,700 63,000 70,000 64,400 Direct cost of sales per pound $ 29.44 $ 41.09 $ 46.25 $ 56.92 $ 36.77 Average selling price per pound $ 69.63 $ 57.41 $ 46.02 $ 39.54 $ 28.67 Six-Month Review Revenue for the first six months of 2007 increased 330% to $12.5 million from $2.9 million during the first six months of 2006. URI sold 194,000 pounds of uranium during the current six month period, compared with 130,000 pounds during the comparable period of 2006. The average selling price through June 30 of 2007 was $64.62, compared with $22.42 last year. In the first six months of 2007, URI produced 244,900 pounds of uranium, compared with 114,800 pounds of uranium in the first six months of 2006. Of this production, 64,600 pounds were from Vasquez and 180,300 pounds was produced at Kingsville Dome. The 2006 production included 91,300 pounds from Vasquez and 23,500 pounds from Kingsville Dome. Production costs for the six-month periods of 2007 and 2006 were $30.75 and $40.94, respectively. For the six months ended June 30, 2007, we had net loss of $237,000, compared with net income of $30.0 million year-to-date in 2006. Earnings in 2006 included a non-cash gain on derivatives of $34.8 million. Teleconference and Webcast The Company is hosting a teleconference and webcast at 11:00 a.m. ET. Thursday, August 9, 2007. During the teleconference, Dave Clark, President and Chief Executive Officer, will review the financial and operating results for the period and discuss URI's corporate strategy and outlook. A question-and-answer session will follow. The URI conference call can be accessed by calling (973) 935-8766 approximately 20 minutes prior to the call. Alternatively, it can be listened to at the Company's website http://www.uraniumresources.com. Participants should go to the website 10 - 15 minutes prior to the scheduled conference in order to register and download any necessary audio software. An archive of the teleconference can also be heard by calling (973) 341-3080 and entering passcode 9071315. The telephonic replay will be available from 1:00 p.m. ET the day of the teleconference until 11:59 p.m. September 6, 2007. The archived webcast will be at http://www.uraniumresources.com. A transcript will also be posted once available. ABOUT URANIUM RESOURCES, INC. Uranium Resources Inc. explores for, develops and mines uranium. Since it's incorporation in 1977, URI has produced over 7 million pounds of uranium by in-situ recovery (ISR) methods in the state of Texas where the Company currently has ISR mining projects. URI also has 183,000 acres of uranium mineral holdings and almost 100 million pounds of uranium in New Mexico. The Company acquired these properties over the past 20 years along with an extensive information database. URI's strategy is to capitalize on the strong global market for uranium by fully exploiting its resource base in Texas and New Mexico, acquiring new assets and through joint ventures or partnerships. Safe Harbor Statement This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," "could," and other similar words. All statements addressing operating performance, events, or developments that the Company expects or anticipates will occur in the future, including but not limited to statements relating to the Company's reserves and mineralized uranium materials, timing of receipt of mining permits, production capacity of mining operations planned for properties in South Texas and New Mexico, planned dates for commencement of production at such properties, revenue, cash generation and profits are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include, but are not limited to, the spot price of uranium, weather conditions, operating conditions at the Company's mining projects, government regulation of the mining industry and the nuclear power industry, the world-wide supply and demand of uranium, availability of capital, timely receipt of mining and other permits from regulatory agents and other factors which are more fully described in the Company's documents filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company's forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release. URANIUM RESOURCES, INC. CONSOLIDATED BALANCE SHEETS ASSETS June 30, December 31, 2007 2006 ----------- ------------ (Unaudited) Current assets: Cash and cash equivalents $16,495,323 $20,176,771 Receivables, net 1,168,130 713,529 Uranium and materials/supplies inventory 2,491,425 1,603,585 Prepaid and other current assets 568,594 410,000 ----------- ------------ Total current assets 20,723,472 22,903,885 ----------- ------------ Property, plant and equipment, at cost: Uranium properties 75,758,035 67,153,797 Other property, plant and equipment 638,890 465,613 Less-accumulated depreciation, depletion and impairment (53,759,117) (49,423,848) ----------- ------------ Net property, plant and equipment 22,637,808 18,195,562 Other assets 2,381,760 2,369,434 Long-term investment: Certificates of deposit, restricted 2,890,423 2,467,491 ----------- ------------ $48,633,463 $45,936,372 =========== ============ URANIUM RESOURCES, INC. CONSOLIDATED BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' EQUITY June 30, December 31, 2007 2006 ----------- ------------- (Unaudited) Current liabilities: Accounts payable $ 2,237,749 $ 1,994,184 Current portion of restoration reserve 1,399,006 1,520,192 Accrued interest and other accrued liabilities 1,554,389 816,877 Current portion of long-term debt 226,869 201,804 ----------- ------------- Total current liabilities 5,418,013 4,533,057 ----------- ------------- Other long-term liabilities and deferred credits 3,805,012 3,998,229 Long-term debt, less current portion 607,555 635,691 Commitments and contingencies (Notes 1, 2 and 3) Shareholders' equity: Common stock, $.001 par value, shares authorized: 200,000,000; shares issued and outstanding (net of treasury shares): 2007--52,225,836; 2006-- 51,791,339 52,264 51,829 Paid-in capital 128,523,131 126,252,871 Accumulated deficit (89,763,094) (89,525,887) Less: Treasury stock (38,125 shares), at cost (9,418) (9,418) ----------- ------------- Total shareholders' equity 38,802,883 36,769,395 ----------- ------------- $48,633,463 $ 45,936,372 =========== ============= URANIUM RESOURCES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 30, June 30, ----------------------- ------------------------ 2007 2006 2007 2006 ---------- ----------- ----------- ----------- Revenues: Uranium sales-- $7,962,709 $ 1,844,770 $12,536,876 $ 2,913,359 ---------- ----------- ----------- ----------- Total revenue 7,962,709 1,844,770 12,536,876 2,913,359 Costs and expenses: Cost of uranium sales-- Royalties and commissions 981,966 169,891 1,420,942 249,326 Operating expenses 1,556,011 1,593,836 3,343,074 3,117,428 Accretion/ amortization of restoration reserve 137,021 141,334 307,201 274,308 Depreciation and depletion 1,810,964 772,250 3,298,013 1,389,089 Exploration expenses -- 234,646 -- 234,646 Gain on derivatives -- (526,875) -- (34,820,947) ---------- ----------- ----------- ----------- Total (gain on) cost of uranium sales 4,485,962 2,385,082 8,369,230 (29,556,150 ---------- ----------- ----------- ----------- Earnings (loss) from operations before corporate expenses 3,476,747 (540,312) 4,167,646 32,469,509 Corporate expenses-- General and administrative 2,479,152 1,600,261 4,691,244 2,657,013 Depreciation 25,022 7,088 46,184 13,059 ---------- ----------- ----------- ----------- Total corporate expenses 2,504,174 1,607,349 4,737,428 2,670,072 ---------- ----------- ----------- ----------- Earnings (loss) from operations 972,573 (2,147,661) (569,782) 29,799,437 Other income (expense): Interest expense (4,500) (1,594) (12,366) (4,333) Interest and other income, net 215,179 33,158 344,941 246,945 Net earnings (loss) $1,183,252 $(2,116,097) $ (237,207) $30,042,049 ========== =========== =========== =========== Net earnings (loss) per common share: Basic $ 0.02 $ (0.04) $ (0.00) $ 0.67 ========== =========== =========== =========== Diluted $ 0.02 $ (0.04) $ (0.00) $ 0.63 ========== =========== =========== =========== Weighted average common shares and common equivalent shares per share data: Basic 52,113,104 48,744,297 51,954,068 44,870,884 ========== =========== =========== =========== Diluted 56,228,005 48,744,297 51,954,068 47,677,369 ========== =========== =========== =========== URANIUM RESOURCES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, ------------------------ 2007 2006 ----------- ----------- Net earnings (loss) $ (237,207) $30,042,049 Reconciliation of net earnings (loss) to cash provided by (used in) operations-- Gain on derivatives -- (34,820,947) Accretion/amortization of restoration reserve 307,201 274,308 Depreciation and depletion 3,344,197 1,402,148 Decrease in restoration and reclamation accrual (655,542) (458,038) Stock compensation expense 1,555,941 796,451 Other non-cash items, net 341,421 210,281 Effect of changes in operating working capital items-- Increase in receivables (454,601) (590,702) (Increase) decrease in inventories 46,274 (14,372) Increase in prepaid and other current assets (486,875) (190,896) Increase in payables, accrued liabilities and deferred credits 981,077 1,348,207 ----------- ----------- Net cash provided by (used in) operations 4,741,886 (2,001,511) Investing activities: Increase in certificates of deposit, restricted (422,932) (566,008) Settlement of derivative instrument -- (12,000,000) Additions to property, plant and equipment-- Kingsville Dome (3,827,251) (5,196,719) Vasquez (410,611) (1,573,094) Rosita (1,877,161) (128,308) Rosita South (1,163,880) (56,984) Churchrock (417,681) (218,551) Crownpoint (48,548) (58,555) Other property (838,749) (931,034) ----------- ----------- Net cash used in investing activities (9,006,813) (20,729,253) Financing activities: Payments on borrowings (131,275) (5,124) Issuance of common stock, net 714,754 48,572,182 ----------- ----------- Net cash from financing activities 583,479 48,567,058 ----------- ----------- Net decrease in cash and cash equivalents (3,681,448) 25,836,294 Cash and cash equivalents, beginning of period 20,176,771 5,852,716 ----------- ----------- Cash and cash equivalents, end of period $16,495,323 $31,689,010 =========== =========== CONTACT: Investors: Kei Advisors LLC Deborah K. Pawlowski/James M. Culligan 716-843-3908/716-843-3874 dpawlowski@keiadvisors.com/jculligan@keiadvisors.com or Company: Uranium Resources, Inc. David N. Clark, 361-883-3990 President and CEO -----END PRIVACY-ENHANCED MESSAGE-----