URU Metals (LON:URU) said drilling and metallurgical work at the Zebediela nickel project in South Africa is expected to start towards the end of January, as it posted results for the six months to end September, which continued to be a difficult time for the sector.
But the group said it continued to believe the long-term fundamentals of the base minerals industries remains positive.
Shares dropped over 9% in early deals to stand at 0.5p each.
The firm has owned Zebediela since 2014 and a preliminary economic assessment in 2012 reported inferred and indicated resources of over 1.5 billion tonnes with an estimated NPV of US$317 million, based on a nickel price of US$8.50 per pound, production of 20,000 tonnes per year over a 25 year life.
In October, URU raised £400,000 from institutional and other investors from a placing, which will be used to further the Zebediela exploration programme, it said.
Meanwhile, due to price weakness in oil and uranium, the firm wrote off US$890,000 intangible assets related to the licences in its subsidiary in Sweden, as management believe they are no longer recoverable.
"The company maintains its core strategy to develop uranium and nickel assets, as there is a growing supply gap in the uranium market that cannot be filled by current and future planned production, and the board anticipates growing demand and price appreciation for uranium and nickel in the short to medium term," it told investors.
The net loss in the period widened to US$1,146 compared to a loss of US$477 in 2014.