Ann: 30 June 2012 Annual Report , page-12

In my opinion, in the context of the current uranium price climate, the report makes pretty dismal reading. Simplifying the report I get:

Revenue: 367
Cost of Sales: (301)
Administration: (50)
Other expenses: (22) - after removing impairment of 178
Finance costs (56)

Net Loss (62)

This represents the performance of the operating business - just because admin and finance are not part of operations it doesn't mean they have no effect on profitability.

Something that make alarm bells ring for me is the inclusion of exploration expense as an ASSET. This is done by many of the shady mining operators, but is hardly and asset that can be sold to somebody else in the event of liquidation! Take away this and the company has zero net assets.

I also note that Kayelekera had cash cost of sales was only one dollar less than the income from sales. The company is cash flow negative still. Certainly true that uranium prices can't stay this low for much longer.

The only saving grace is the assertion that there is, or will be a shortage of uranium production in the not too distant future. Lets hope so! I have been hoping so, but having just been to a funeral I wonder whether I might die waiting.