Uranium Participation pegs Dec. 31 NAV at $586.8M
Uranium Participation pegs Dec. 31 NAV at $586.8M
2020-01-08 19:53 ET - News Release
Mr. David Cates reports
URANIUM PARTICIPATION CORPORATION REPORTS ESTIMATED NET ASSET VALUE AT DECEMBER 31, 2019
Uranium Participation Corp. has estimated its net asset value at Dec. 31, 2019, of $586.8-million or $4.25 per share. As at December 31, 2019, UPC's uranium investment portfolio consisted of the following:
(in thousands of Canadian dollars, except quantity amounts) Quantity Fair Value Investments in Uranium: Uranium oxide in concentrates ("U3O8") 15,349,516 lbs $ 498,399 Uranium hexafluoride ("UF6") 700,000 KgU $ 79,642 $ 578,041 U3O8 fair value1 per pound: - In Canadian dollars1 $ 32.47 - In United States dollars $ 25.00 UF6 fair value1 per KgU: - In Canadian dollars1 $ 113.77 - In United States dollars $ 87.60 (1) Fair values are month-end spot prices published by Ux Consulting Company, LLC, translated at the Bank of Canada's month-end daily exchange rate of $1.2988.
On the last trading day of December 2019, the common shares of UPC closed on the TSX at a value of CAD$4.08, which represents a 4.00% discount to the net asset value of CAD$4.25 per share.
As previously reported (in UPC's news release dated November 14, 2019), UPC has entered into commitments to sell the conversion component contained in 300,000 KgU as UF6 ("Conversion Sale") and to purchase a total of 230,000 pounds of U3O8 ("Uranium Purchase"). The Conversion Sale will result in the exchange of 300,000 KgU as UF6 for 783,856 pounds of U3O8 and cash consideration of USD$6,087,000, and will occur in three equal tranches of 100,000 KgU as UF6 for delivery in January 2020, June 2020, and July 2020. The Uranium Purchase involves the acquisition of three tranches of 100,000 pounds U3O8, 76,300 pounds U3O8, and 53,700 pounds U3O8, for delivery in October 2019, January 2020, and June 2020, respectively, at an average price of USD$26.04. In October 2019, UPC took delivery of the first tranche of 100,000 pounds U3O8.
Following the completion of the various uranium transactions described above, UPC expects to hold a total of 16,263,372 pounds U3O8, and 400,000 KgU as UF6.
About Uranium Participation Corporation
Uranium Participation Corporation is a company that invests substantially all of its assets in uranium oxide in concentrates ("U3O8") and uranium hexafluoride ("UF6") (collectively "uranium"), with the primary investment objective of achieving appreciation in the value of its uranium holdings through increases in the uranium price. UPC provides investors with a unique opportunity to gain exposure to the price of uranium without the resource or project risk associated with investing in a traditional mining company.
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