TORONTO, May 13, 2013 /CNW/ - Uranium One Inc. ("Uranium One") today
reported quarterly revenue of $62.6 million for Q1 2013, including
joint venture revenue, based on sales of 1.4 million pounds at an
average realized sales price of $45 per pound and an average total cash
cost per pound sold of $17.
Q1 2013 Highlights
Operational
-
Total attributable production during Q1 2013 was 3.1 million pounds, 10%
higher than total attributable production of 2.8 million pounds during
Q1 2012.
-
The average total cash cost per pound sold was $17 per pound for Q1
2013, compared to $14 per pound for Q1 2012.
Financial
The following table provides a summary of key financial results:
|
|
|
FINANCIAL
|
Q1 2013
|
Q1 2012
|
Attributable production (lbs) (1) |
3,018,000
|
2,572,500
|
Attributable sales (lbs) (1) |
1,381,300
|
1,809,400
|
Average realized sales price ($ per lb) (2) |
45
|
53
|
Average total cash cost per pound sold($ per lb)(2) |
17
|
14
|
Revenues ($ millions) (3)(4) |
5.2
|
5.3
|
Revenues from joint ventures ($ millions)
|
57.4
|
90.6
|
Earnings from mine operations ($ millions) (3)(4) |
1.9
|
5.3
|
Earnings from mine operations, including earnings from joint ventures ($
millions) |
19.6
|
49.3
|
Net (loss) / earnings ($ millions)
|
(9.5)
|
4.5
|
Net (loss) / earnings per share - basic and diluted ($ per share)
|
(0.01)
|
0.00
|
|
|
|
Adjusted net (loss) / earnings ($ millions)(2) |
(4.3)
|
15.1
|
Adjusted net earnings per share - basic ($ per share)(2) |
(0.00)
|
0.02
|
Corporate
-
On January 13, 2013, the Corporation entered into a definitive agreement
with ARMZ under which the Corporation would be taken private pursuant
to a Plan of Arrangement. ARMZ and its affiliates currently own 51.4%
of the Corporation's outstanding common shares; under the agreement,
ARMZ will acquire all of the remaining publicly held Common Shares for
a cash consideration of CDN$2.86 per share. The transaction is expected
to close by the end of Q2 2013.
-
On March 25, 2013, the Corporation arranged a three year, $1.45 billion
unsecured revolving credit facility with ARMZ. Drawings under the
facility bear interest at the rate of 3.3% per annum. On March 26,
2013, the Corporation drew down the facility.
-
On April 3, 2013, KPMG LLP was appointed as auditor of the Corporation,
following the resignation of Deloitte LLP.
-
On April 5, 2013, the Tanzanian Government issued a Special Mining
License to Mantra for the Mkuju River Project; negotiations with the
Tanzanian Government on the terms of a mine development agreement and
other required Tanzanian approvals are continuing.
Outlook
Total attributable production for 2013 and 2014 is estimated to be 12.5
million and 13.0 million pounds, respectively.
During 2013, the average cash cost per pound sold is expected to be
approximately $19 per pound.
The Corporation expects attributable sales to be approximately 12.5
million and 13.0 million pounds in 2013 and 2014, respectively.
The Corporation expects to incur attributable capital expenditures in
2013 of $98 million for wellfield development and $66 million for plant
and equipment, totalling $164 million for its assets in Kazakhstan, the
United States and Australia.
In 2013, general and administrative expenses, excluding non-cash items,
are expected to be approximately $40 million and exploration expenses
are expected to be $8 million.
Q1 2013 Operations and Projects
During Q1 2013, Uranium One achieved attributable production of 3.1
million pounds, an increase of 10% over attributable production of 2.8
million pounds for the comparable period in 2012.
Operational results for Uranium One's assets during Q1 2013 were:
Asset
|
Q1 Attributable Production (lbs U3O8)
|
Q1 Total Cash Costs (per lb sold U3O8)
|
Akdala
|
470,800
|
$15
|
South Inkai
|
796,900
|
$19
|
Karatau
|
620,000
|
$11
|
Akbastau
|
462,300
|
$12
|
Zarechnoye
|
319,800
|
$26
|
Kharasan
|
108,100
|
N/A
|
Willow Creek
|
240,100
|
N/A
|
Honeymoon
|
80,600
|
N/A
|
Q1 2013 Financial Review
Revenue was $5.2 million in Q1 2013, compared to $5.3 million in Q1
2012.
Joint venture attributable revenue in Q1 2013 was $57.4 million,
compared to $90.6 million in Q1 2012.
The average total cash cost per pound sold was $17 per pound for Q1
2013, compared to $14 per pound for Q1 2012.
Earnings from mine operations were $1.9 million during Q1 2013, compared
to $5.3 million in Q1 2012.
Earnings from mine operations, including earnings from joint ventures,
were $19.6 million during Q1 2013, a 60% decrease compared to
$49.3 million in Q1 2012.
Inventory as at March 31, 2013 was 0.8 million pounds for the
corporation and its subsidiaries, which includes work in progress as
well as finished product ready to be shipped or in transit. Inventory
held by the joint ventures was 4.5 million pounds as at March 31, 2013.
The net loss for Q1 2013 was $9.5 million or $0.01 per share, compared
to net earnings of $4.5 million or $0.00 per share for Q1 2012.
The adjusted net loss for Q1 2013 was $4.3 million or $0.00 per share,
compared to adjusted net earnings of $15.1 million or $0.02 per share
for Q1 2012.
Consolidated cash and cash equivalents including restricted cash were
$1,869.3 million as at March 31, 2013 compared to $442.0 million at
December 31, 2012. Working capital was $578.2 million at March 31,
2013.
The following table provides a reconciliation of adjusted net earnings
to the consolidated financial statements:
|
|
|
(US DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)
|
|
3 MONTHS ENDED
|
MAR 31, 2013 $ MILLIONS
|
MAR 31, 2012 $ MILLIONS
|
Net (loss) / earnings
|
|
(9.5)
|
4.5
|
Care and maintenance costs
|
|
0.3
|
0.5
|
Corporate development expenditure
|
|
5.1
|
1.9
|
Restructuring costs
|
|
2.1
|
-
|
Ruble bond hedge accounting adjustments
|
|
(2.3)
|
8.2
|
Adjusted net earnings
|
|
(4.3)
|
15.1
|
Adjusted net earnings per share - basic ($) and diluted
|
|
(0.00)
|
0.02
|
Weighted average number of shares (millions) - basic and
diluted
|
|
957.2
|
957.2
|
The financial statements, as well as the accompanying management's
discussion and analysis were prepared in accordance with International
Financial Reporting Standards (IFRS) and are available for review at
www.uranium1.com and should be read in conjunction with this news
release. All figures are in U.S. dollars unless otherwise indicated.
All references to pounds sold or pounds produced are to pounds of U3O8.
About Uranium One
Uranium One is one of the world's largest uranium producers with a
globally diversified portfolio of assets located in Kazakhstan, the
United States, Australia and Tanzania.
Notes to key financial results:
|
(1)
|
Attributable production and sales are from assets owned and joint
venture interests in commercial production during the period.
|
(2) |
The Corporation has included the following non-IFRS performance
measures: average realized sales price per pound, cash cost per pound
sold, adjusted net earnings and adjusted net earnings per share. In the
uranium mining industry, these are common performance measures but do
not have any standardized meaning, and are non- IFRS measures. The
Corporation believes that, in addition to conventional measures
prepared in accordance with IFRS, the Corporation and certain investors
use this information to evaluate the Corporation's performance and
ability to generate cash flow. The additional information provided
herein should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. See "Non-IFRS
Measures" in the MD&A.
|
(3) |
Comparative information has been restated with the adoption of IFRS 11 -
Joint arrangements on January 1, 2013.
|
(4) |
Includes profits / losses for joint venture production delivered into
contracts held by the Corporation, and excludes revenues from joint
ventures.
|
Cautionary Statement
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.
Investors are advised to refer to independent technical reports
containing detailed information with respect to the material properties
of Uranium One. These technical reports are available under the
profiles of Uranium One Inc. at www.sedar.com. Those technical reports provide the date of each resource or reserve
estimate, details of the key assumptions, methods and parameters used
in the estimates, details of quality and grade or quality of each
resource or reserve and a general discussion of the extent to which the
estimate may be materially affected by any known environmental,
permitting, legal, taxation, socio-political, marketing, or other
relevant issues. The technical reports also provide information with
respect to data verification in the estimation.
Forward-looking statements: This press release contains certain
forward-looking statements. Forward-looking statements include but are
not limited to those with respect to the price of uranium, the
estimation of mineral resources and reserves, the realization of
mineral reserve estimates, the timing and amount of estimated future
production, costs of production, capital expenditures, costs and timing
of the development of new deposits, success of exploration activities,
permitting time lines, currency fluctuations, requirements for
additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, the timing and
potential effects of proposed transactions, title disputes or claims
and limitations on insurance coverage and the timing and possible
outcome of pending litigation. In certain cases, forward-looking
statements can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes" or variations of such words and phrases, or
state that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
of Uranium One to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
statements. Such risks and uncertainties include, among others, the
completion of the transactions described in this press release, the
future steady state production and cash costs of Uranium One, the
actual results of current exploration activities, conclusions of
economic evaluations, changes in project parameters as plans continue
to be refined, possible variations in grade and ore densities or
recovery rates, failure of plant, equipment or processes to operate as
anticipated, accidents, labour disputes or other risks of the mining
industry, delays in obtaining government approvals or financing or in
completion of development or construction activities, risks relating to
the integration of acquisitions and the realization of synergies
relating thereto, to international operations, to prices of uranium as
well as those factors referred to in the section entitled "Risk
Factors" in Uranium One's Annual Information Form for the year ended
December 31, 2012, which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document.
Although Uranium One has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Uranium One expressly disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise, except in accordance
with applicable securities laws.
For further information about Uranium One, please visit www.uranium1.com.
SOURCE: Uranium One Inc.
![](http://rt.newswire.ca/rt.gif?NewsItemId=C6350&Transmission_Id=201305131756CANADANWCANADAPR_C6350&DateId=20130513)