Forte Energy's (ASX:FTE, LON:FTE) faith in the long term fundamentals of the uranium market remains undimmed, it revealed in its interim results.
The company continues to actively investigate merger and acquisition opportunities in the sector, as industry trends indicate a sizeable supply shortfall of uranium in the coming years.
The six months to the end of December saw the group largely focused on its Slovak uranium projects, with the group publishing a revised resource estimate for these assets on 28 January of this year. As a result, the company's total JORC-compliant resources in West Africa and Slovakia increased by 70% (31.6mln pounds) to 76.5 million pounds of uranium oxide (U3O8).
The only revenue the company earns at present is interest from its cash pile, so it is no surprise that the explorer is currently making a loss.
The pre-tax loss widened to US$2.63mln from US$1.06mln in the corresponding period of 2013, as administrative expenses grew to US$2.52mln from US$1.11mln, largely as a result of a US$1.30mln paper-based (non-cash) adjustment in the fair value of derivative financial instruments.
Cash and cash equivalents at the end of 2014 stood at US$794,618, up from US$92,467 a year earlier.
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