Manhattan Corporation Limited Stock Market Press Releases and Company Profile
Interim Financial Report - 31 December 2011
Interim Financial Report - 31 December 2011

Perth, Mar 14, 2012 AEST (ABN Newswire) - Dear Shareholders and Investors

I am pleased to present, on behalf of the Board, Manhattan's (googlechartASX:MHC) Interim Financial Report for the Half Year ended 31 December 2011. The Group recorded an operating loss after income tax for the Half Year of $560,620.

During the Half Year under review there have been a number of significant developments at Manhattan's flagship uranium project at Ponton in Western Australia.

Earlier in 2011 Manhattan reported a revised Inferred Resource for Double 8 of 17.2Mlb of uranium oxide with an additional reported Mineralisation Potential at Double 8 and Stallion South, Highway South and Ponton prospects in the order of 33 to 67Mlbs. The shallow near surface sand hosted resource and drilled targets at around 60 metres deep in contiguous palaeochannels confirms the potential for a world class ISL uranium development project at Ponton.

The Double 8 uranium deposit, with 17.2Mlb of contained uranium oxide, ranks as number 20 in Australia and 7th largest reported resource in Western Australia with potential to expand on this resource base with further drilling.

International mining engineering consultants, Tetra Tech, completed a positive desktop study of Manhattan's Ponton uranium project in August 2011 that indicates the project has potential to become a viable and sustainable ISL uranium producer with comparatively low operational costs per pound of uranium oxide that would require a relatively modest capital investment. Tetra Tech recommends further work be undertaken to confirm the project's technical and economic viability.

Manhattan's four Exploration Licences that encroach on, or are within, the QVSNR were all granted by August 2011. Manhattan is now seeking exploration access approval to the key licence, E28/1898 located mostly within the QVSNR, or have the licence excised from the Reserve. On gaining exploration access to E28/1898 Manhattan will recommence drill testing and evaluation of the Ponton uranium deposits and prospects that will underpin the future development of the Ponton ISL project.

Despite the setback experienced by the uranium industry worldwide in March 2011, caused by the Fukushima earthquake and tsunami, the outlook for the uranium and nuclear power industries are positive with expansion underway worldwide with 61 new reactors under construction.

There are no signs of a slowdown in the industry or uranium primary fuel consumption with all the major nuclear powered states recently reaffirming their commitment to maintain and expand their nuclear capacity.

Early in 2012 uranium stocks prices have generally improved as investor sentiment returns to the sector and investors seek uranium companies with advanced resources, near term production or production.

2012 market activity has seen an increase in traded volumes and upward price trends for most listed uranium equities. Uranium supply shortfalls predicted as soon as 2013 will impact on market forces with the uranium price predicted to surge in the latter half of 2012. Uranium companies with advanced resource inventories (including Manhattan) and producers will be the target of investors and possible takeover and merger activity as this supply squeeze unfolds.

At 31 December 2011 there were 434 operating nuclear power plants in 31 countries, 240 research and medical isotope reactors and 140 nuclear powered submarines, aircraft carriers and icebreakers operating worldwide. These reactors are consuming 200Mlb of uranium oxide a year. Primary mine supply worldwide is around 130Mlb with the shortfall in supply being met by inventories (now at very low levels), secondary supply from MOX recycling and dilution of HEU weapons material (35Mlbs per annum).

The uranium price, currently around US$52 on spot market and US$68 for medium term contracts, is set to rise in 2012 as nuclear fuel supply shortfall impacts.

With primary mine production flat for the foreseeable future, the cessation of HEU weapons material in 2013 and inventories virtually exhausted there is a serious shortfall in supply looming. There are 61 new reactors now under construction with another 156 at the advanced planning or approval stage. Uranium demand is predicted to be 320Mlbs a year in 10 years with a fuel supply shortfall looming of 85Mlbs by 2014 and as much as 165Mlbs a year by 2022.

The scale of Manhattan's Ponton uranium project, located in Western Australia, has the potential to be developed into a world class low cost sustainable ISL uranium producer. On gaining the necessary government approvals and exploration access to the key licence in QVSNR the 55km of mineralised palaeochannels will be drilled out and mine feasibility studies completed. Resource definition drilling and the green light to develop the project will generate significant value for Manhattan's shareholders.

Manhattan is well positioned, with its drilled resources and identified exploration targets at Ponton, to take advantage of the dynamics of the uranium sector and generate shareholder wealth. The Company's board and management team remain focused on gaining the necessary approvals from the WA government in 2012 to drill out and develop the Ponton ISL uranium project.

ALAN J EGGERS
Executive Chairman
14 March 2012

To view the complete Manhattan Corporation financial report including all data, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-MHC-581904.pdf

Contact

Manhattan Corporation Limited
T: +61-8-9322-6677
F: +61-8-9322-1961
WWW: www.manhattancorp.com.au



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