| Mon 14 May 2007, 15:06 | | SXR - sxr Uranium One Inc - Press Release |
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SXR
SXR
SXR - sxr Uranium One Inc - Press Release
sxr Uranium One Inc
(Incorporated in Canada)
(Registration number: 15096422420)
Share code on the JSE: SXR & ISIN: CA87112P1062
Share code on the TSX: SXR & ISIN: CA87112P1062
sxr Uranium One Inc.
390 Bay Street, Suite 1610
Toronto, Ontario M5H 2Y2
Trading Symbol: SXR - Toronto Stock Exchange, JSE Limited (Johannesburg stock
exchange)
NEWS RELEASE
May 14, 2007
Uranium One Announces Financial Results for Q1 2007
Toronto, Ontario and Johannesburg, South Africa -- sxr Uranium One Inc.
("Uranium One") today reported unaudited financial results for the three months
ended March 31, 2007. All figures are in US dollars unless otherwise indicated.
Complete details of the March 31, 2007 financial statements and management`s
discussion and analysis thereon can be found on the Uranium One website
www.uranium1.com and on SEDAR at www.sedar.com.
The unaudited financial results for the three months ended March 31, 2007 do not
include the results from UrAsia Energy Ltd. ("UrAsia") which was acquired on
April 20, 2007 subsequent to the quarter end. However, a discussion of the
performance of UrAsia during the quarter is provided. UrAsia`s financial
statements for the three months ended March 31, 2007 and management`s discussion
and analysis thereon can be found on the Uranium One website and on SEDAR at
www.sedar.com under UrAsia Energy Ltd.
Q1 2007 Highlights
sxr Uranium One
Financial
In line with expectations, a Q1 operating loss of $8.9 million and a net loss of
$3.8 million ($0.03 per share - basic and fully diluted), compared to an
operating loss of $9.6 million and net loss of $1.9 million ($0.02 per share -
basic and fully diluted) in Q1 2006.
An increase from December 31, 2006 of $39.8 million in non-current assets to
$330.1 million at March 31, 2007, primarily as a result of additions to
property, plant and equipment at Dominion, Honeymoon and Modder East.
Cash balances declined to $287.7 million as at March 31, 2007, from $327.5
million at December 31, 2006, primarily due to the capital spent on the further
development of projects.
Dominion Uranium Project
The National Nuclear Regulator (NNR) issued a Certificate of Registration (CoR)
in February 2007.
Processing of ore from underground commenced in February 2007; ramp-up of
production from underground, and completion of all plant components, is ongoing
in order to meet stated production targets.
Milestone achievements at the plant during the quarter include:
Hot commissioning on February 28, 2007 of the atmospheric leach circuit,
including the uranium counter current decantation circuit
Boiler operated at design capacity and passed a performance guarantee test
On-site assay laboratory is operational for all plant samples
Honeymoon Uranium Project
Design work by the EPCM contractor, Bateman, is underway.
Work is proceeding on infrastructure for the Honeymoon Uranium Project.
Other
Completion of purchase from US Energy Corp. of the Shootaring Canyon Uranium
Mill and associated properties on April 30, 2007.
UrAsia Energy
Uranium One has a 70% stake in the Betpak Dala Joint Venture which owns the
Akdala and South Inkai uranium mines. Production from the Akdala Uranium Mine
is running ahead of budgeted expectations and due to its low cash cost of $12/lb
is generating significant cash flow at the current uranium price. As a result,
all outstanding loans from UrAsia to the Betpak Dala Joint Venture have been
repaid ahead of schedule. Development work is proceeding at South Inkai and
Kharassan, which is part of the Kyzylkum Joint Venture of which sxr Uranium One
is a 30% joint venture partner. Production from South Inkai and Kharassan is
anticipated to commence by the end of 2007.
Highlights from Q1 2007
The transaction to acquire UrAsia was negotiated during the quarter and
completed on April 20, 2007.
U3O8 production at the Akdala Uranium Mine in Q1 2007 amounted to 497,000 pounds
(191,000 kg U), which was 10% ahead of budget for the year to date.
Attributable U3O8 sales from Akdala during Q1 2007 were 605,000 pounds (233,000
kg U).
$41.7 million of attributable revenue was earned from Akdala uranium sales, with
resultant operating earnings of $29.8 million.
Average realized sales price for U3O8 in Q1 2007 was $69 per pound (the average
spot price for U3O8 during this period was approximately $85 per pound); the
average cash production cost per pound of U3O8 sold was approximately $12 per
pound.
Net income for Q1 2007 was $8.0 million ($0.02 per share). This included a non-
cash expense of $8.6 million arising from an exchange loss on the revaluation of
future income tax liabilities. If this item were to be excluded, net income for
the period would have been $16.5 million.
Due to improved cash flow from uranium sales at Betpak Dala, all outstanding
loans payable to UrAsia by Betpak Dala were repaid during Q1 2007 (these had
stood at $62.6 million on December 31, 2006).
At South Inkai, exploration and production drilling are on schedule.
Construction is slightly behind schedule, but the contractor workforce has been
enlarged and the number of shifts on site has been increased so the project can
revert to schedule by the last quarter, when the first production is expected.
Four new GEFCO drill rigs are now at the two development sites and the training
of crews has begun.
At Kharassan, some delays in construction have been experienced due to wet
weather and floods. Drilling is 1-2 months behind schedule due to rig
shortages, but the lost time is expected to be made up following the
commissioning of the two new GEFCO rigs which are now on site. Production is
still scheduled to begin during the last quarter.
Uranium One`s President and CEO Neal Froneman commented:
"Uranium One is producing uranium and has established itself as an emerging
senior global uranium company. Akdala is a high margin asset, is performing
ahead of our expectations and is generating significant cash flow at the current
uranium price. Our existing uranium sales contracts provide exposure to further
potential increases in the uranium price while maintaining floor price
protection on the majority of our contracts. Uranium One has further near-term
production visibility, from a number of world class assets in South Africa,
Kazakhstan, the United States, Canada and Australia. With the conclusion of
the acquisition of UrAsia Energy and the purchase of the Shootaring Canyon Mill
and associated properties from U.S. Energy, Uranium One is well placed to
participate in further consolidation of the global uranium industry."
About Uranium One
sxr Uranium One Inc. is a Canadian-based uranium producing company with a
primary listing on the Toronto Stock Exchange and a secondary listing on the JSE
Limited (the Johannesburg stock exchange). The Corporation owns 70% of the
operating Akdala Uranium Mine in Kazakhstan and is also developing the South
Inkai and Kharassan Uranium Projects in Kazakhstan. Uranium One owns the
Dominion Uranium Project in South Africa, as well as the Honeymoon Uranium
Project in South Australia. The Corporation recently acquired the Shootaring
Canyon Mill and associated assets in the western United States. Uranium One is
also engaged in uranium exploration activities in the Athabasca Basin of
Saskatchewan, South Africa, Australia and the Kyrgyz Republic.
For further information, please contact:
Neal Froneman Chris Sattler
Chief Executive Officer Senior Vice President, Investor Relations
Tel: + 27 83 628 0226 Tel: + 1 416 671 3341
Cautionary Statement
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
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 and gold, 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, 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 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, to international operations, to prices of uranium and gold 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, 2006 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
Date: 14/05/2007 15:06:01 Produced by the JSE SENS Department.
