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UUU
UUU
UUU - Uranium One Inc - Interim Consolidated Financial Statements For The
Period Ended March 31, 2008 (Unaudited)
Uranium One Inc
(Incorporated in Canada)
(Registration number: 15096422420)
Share code on the JSE: UUU & ISIN: CA91701P1053
Share code on the TSX: UUU & ISIN: CA91701P1053
Interim Consolidated Financial Statements for the period ended March 31,
2008 (Unaudited)
Uranium One Inc.
Consolidated Balance Sheets - Unaudited
As at March 31, 2008 and December 31, 2007 (in United States dollars)
Mar 31, Dec 31, 2007
2008
Notes $`000 $`000
ASSETS
Current assets
Cash and cash equivalents 160,226 159,592
Accounts and other receivables 4 32,255 70,318
Current portion of loans to joint 5.2 19,555 32,867
ventures
Inventories 6 27,438 20,952
Other assets 1,013 18,056
Current assets of discontinued 3 71,015 94,986
operations
311,502 396,771
Non-current assets
Mineral interests, plant and 7 4,506,618 4,774,982
equipment
Loans to joint ventures 5.2 27,895 24,359
Available for sale securities 8 16,598 21,257
Other assets 9 51,109 56,543
Assets held for sale 10 52,371 52,371
Non-current assets of discontinued 3 86,253 286,614
operations
4,740,844 5,216,126
Total assets 5,052,346 5,612,897
LIABILITIES
Current liabilities
Accounts payable and accrued 11 51,527 70,802
liabilities
Income taxes payable 10,205 4,237
Current liabilities of discontinued 3 1,730 5,245
liabilities
63,462 80,284
Non-current liabilities
Convertible debentures 135,156 136,548
Asset retirement obligations 9,991 13,926
Future income tax liabilities 1,383,621 1,476,241
Long term debt 5.1 23,954 18,205
Other long term payables 1,815 1,824
Assets held for sale 10 19,819 19,819
Non-current liabilities of 3 98,393 183,145
discontinued operations
1,672,749 1,849,708
SHAREHOLDERS` EQUITY
Share capital 12 3,501,700 3,496,884
Contributed surplus 13 137,913 134,387
Equity component of convertible 46,480 46,480
debentures
Deficit (161,683) (46,813)
Accumulated other comprehensive (208,275) 51,967
(loss) / income
3,316,135 3,682,905
Total shareholders` equity and 5,052,346 5,612,897
liabilities
Basis of presentation and principles of consolidation (note 2.1)
The accompanying notes form an integral part of these Interim
Consolidated Financial Statements.
Uranium One Inc.
Consolidated Statements of Operations - Unaudited
For the three month periods ended March 31, 2008 and 2007
(in United States dollars)
Three months ended
Notes Mar 31, Mar 31,
2008 2007
$`000 $`000
Revenues 22,517 41,730
Operating expenses (3,292) (7,043)
Depreciation and depletion (2,931) (4,859)
Earnings from mine operations 16,294 29,828
General and administrative (1) (15,281) (4,681)
Exploration expense (1,680) (1,459)
Operating (loss) / earnings (667) 23,688
Interest income 2,760 2,203
Interest expense (3,771) -
Foreign exchange loss 14 (2,626) (7,431)
Other (480) (161)
(Loss) / earnings from continuing (4,784) 18,299
operations before income taxes
Current income tax expense (6,459) (12,528)
Future income tax recovery 928 2,200
(Loss) / earnings from continuing (10,315) 7,971
operations
Net loss from discontinued operations 3 (104,555) -
and provision for impairment
Net (loss) / earnings (114,870) 7,971
(1) - Stock option and restricted 13 6,114 3,377
share expense (non-cash) included in
general and administrative
(Loss) / earnings per share from
continuing operations
Basic (0.02) 0.04
Diluted (0.02) 0.04
Loss per share from discontinued
operations
Basic (0.22) -
Diluted (0.22) -
Net (Loss) / earnings per share
Basic (0.24) 0.04
Diluted (0.24) 0.04
Weighted average number of shares (in
thousands)
Basic 16 467,451 216,327
Diluted 16 467,451 221,687
The accompanying notes form an integral part of these Interim
Consolidated Financial Statements.
Uranium One Inc.
Consolidated Statements of Changes in Equity - Unaudited
For the three month period ended March 31, 2008 and the year ended
December 31, 2007
(in United States dollars)
Equity Accumulated
component other Deficit Total
Share Contri- of converti-comprehend-
capital buted ble sive income
surplus debentures
Balance as 613,607 31,286 - - (29,204) 615,689
at December
31, 2006
Net loss for - - - - (17,609) (17,609)
the period
Stock - 37,660 - - - 37,660
options and
restricted
shares
vested
Exercise of 2,115 (1,035) - - - 1,080
warrants
Exercise of 54,912 (30,873) - - - 24,039
stock
options and
restricted
shares
Uranium One 1,709,647 62,042 46,480 - - 1,818,169
Inc / UrAsia
Energy Ltd
business
combination
U.S. Energy 99,401 - - - - 99,401
Corp asset
purchase
Energy 1,013,215 35,307 - - - 1,048,522
Metals
Corporation
asset
purchase
Unrealized - - - 47,536 - 47,536
gains
recognized
on
translation
of self-
sustaining
foreign
operations
Unrealized - - - 4,243 - 4,243
gain
recognized
on
translation
of self-
sustaining
foreign
discontinued
operations
(note 3)
Shares 3,987 - - - - 3,987
issued for
services
rendered
Gain on - - - 188 - 188
available
for sale
securities,
net of tax
(note 8)
Balance as 3,496,884 134,387 46,480 51,967 (46,813) 3,682,905
at December
31, 2007
Net loss for - - - - (114,870) (114,870)
the period
Stock - 6,199 - - - 6,199
options and
restricted
shares
vested
Exercise of 2,105 (1,062) - - - 1,043
warrants
Exercise of 2,711 (1,611) - - - 1,100
stock
options and
restricted
shares
Unrealized - - - (229,958) - (229,958)
loss
recognized
on
translation
of self-
sustaining
foreign
operations
Unrealized - - - (29,411) - (29,411)
loss
recognized
on
translation
of self-
sustaining
foreign
discontinued
operations
(note 3)
Loss on - - - (873) - (873)
available
for sale
securities,
net of tax
(note 8)
Balance as 3,501,700 137,913 46,480 (208,275) (161,683) 3,316,135
at March 31,
2008
The accompanying notes form an integral part of these Interim
Consolidated Financial Statements.
Uranium One Inc.
Consolidated Statements of Comprehensive (Loss) / Income - Unaudited
For the three month periods ended March 31, 2008 and 2007
(in United States dollars)
Notes Mar 31, 2008 Mar 31, 2007
$`000 $`000
Net (loss) / earnings (114,870) 7,971
Unrealized losses recognized (229,958) -
on translation of self-
sustaining foreign
operations
Unrealized loss recognized 3 (29,411) -
on translation of self-
sustaining
foreign discontinued
operations
Loss on available for sale 8 (873) -
securities, net of tax
Comprehensive (loss) / (375,112) 7,971
income
The accompanying notes form an integral part of these Interim
Consolidated Financial Statements.
Uranium One Inc.
Consolidated Statements of Cash Flows - Unaudited
For the three month periods ended March 31, 2008 and 2007
(in United States dollars)
Three months
ended
Notes Mar 31, 2008 Mar 31, 2007
$`000 $`000
Net (loss) / earnings from (10,315) 7,971
continuing operations
Items not affecting cash:
- Depreciation and depletion 2,931 4,859
- Stock option and restricted share 13 6,114 3,377
expense
- Interest accrued on loans and 3,691 -
debentures
- Unrealized foreign exchange (2,213) 7,217
(gain) / loss
- Future income tax recovery (928) (2,200)
- Other 1,031 -
Movement in non-cash working 15 39,146 30,194
capital
Cash flows from operating 39,457 51,418
activities
Acquisition of mineral interests, (54,017) (16,693)
plant and equipment
Advance cash payment for other (802) (4,313)
assets
Joint venture earn in payments 2,377 -
received
Cash advances to joint ventures 5 (3,900) (7,000)
Cash proceeds from joint ventures 5 13,667 18,780
Cash flows to investing activities (42,675) (9,226)
Common shares issued, net of issue 2,143 507
costs
Loans received by Kyzylkum, net of 5.1 6,000 -
acquisition costs
Cash flows from financing 8,143 507
activities
Effects of exchange rate changes on (4,291) 214
cash and cash equivalents
Net increase in cash and cash 634 42,913
equivalents
Cash and cash equivalents at the 159,592 61,838
beginning of the period
Cash and cash equivalents at the 15 160,226 104,751
end of the period
Supplemental cash flow information (note 15)
The accompanying notes form an integral part of these Interim
Consolidated Financial Statements.
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
1 NATURE OF OPERATIONS
Uranium One Inc. ("Uranium One") and its subsidiaries ("the Corporation")
is a Canadian uranium corporation engaged through subsidiaries and joint
ventures in the mining and production of uranium, and in the acquisition,
exploration and development of properties for the production of uranium,
in Kazakhstan, South Africa, the United States, Australia and Canada. The
Corporation is in the process of disposing of its remaining 38% interest
in Aflease Gold Limited ("Aflease Gold"), which is engaged in the
development of the Modder East Gold Project in South Africa.
Uranium One owns a 70% interest in both the producing Akdala Uranium Mine
and the South Inkai Uranium Project which is being commissioned. The
Kharasan Project in Kazakhstan, in which the Corporation owns a 30%
interest, is being developed by the Kyzylkum Joint Venture. The
Corporation also owns the Dominion Uranium Project in South Africa. In
the United States, the Corporation owns the Hobson Uranium Processing
Facility and La Palangana Project in Texas, projects in the Powder River
and Great Divide Basins in Wyoming and the Shootaring Mill in Utah. The
Corporation also owns the Honeymoon Uranium Project in Australia. The
Corporation owns, either directly or through joint ventures, a large
portfolio of uranium exploration properties in South Africa, the western
United States, South Australia, and the Athabasca Basin of Saskatchewan
in Canada.
2 SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of presentation and principles of consolidation
These interim unaudited consolidated financial statements have been
prepared in accordance with Canadian generally accepted accounting
principles for interim financial information and they follow the same
accounting policies and methods of application as the audited
consolidated financial statements of the Corporation for the year ended
December 31, 2007, except as discussed in note 2.2. These interim
unaudited consolidated financial statements do not include all the
information and note disclosure required by the generally accepted
accounting principles for annual financial statements and therefore
should be read in conjunction with the most recent annual audited
consolidated financial statements.
The consolidated balance sheet, statement of operations and certain
comparative figures have been restated for discontinued operations (Note
3)
The consolidated financial statements include the accounts of Uranium One
and all of its subsidiaries and the proportionate share of its interests
in joint ventures. All intercompany balances and transactions have been
eliminated.
The following are the Corporation`s principal mineral properties and
operations as at March 31, 2008:
Operating mine:
Entity Mineral property / Location Ownership Status
Operation
Betpak Dala LLP Akdala Uranium Mine Kazakhstan 70% Proportionately
consolidated
Advanced
development
projects:
Entity Mineral property / Location Ownership Status
Operation
Betpak Dala LLP South Inkai Uranium Kazakhstan 70% Proportionately
Project consolidated
Kyzylkum LLP Kharasan Uranium Kazakhstan 30% Proportionately
Project consolidated
Uranium One Dominion Uranium South 100% Consolidated
Africa Limited Project Africa
The Corporation is also developing
the following mineral properties:
Entity Mineral property / Location Ownership Status
Operation
Energy Metals US development United 100% Consolidated
Corp US projects States
South Texas Hobson Facility and United 99% Consolidated
Mining Venture La Palangana States
Project
Uranium One USA Shootaring Canyon United 100% Consolidated
Inc Uranium Mill States
Pitchstone Pitchstone Joint Canada 50% Proportionately
Joint Venture Venture consolidated
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
2 SIGNIFICANT ACCOUNTING POLICIES (continued)
2.2 Adoption of new standards
Effective January 1, 2008, the Corporation adopted new accounting
standards for Capital Disclosures (CICA Handbook Section 1535),
Inventories (CICA Handbook Section 3031), and Financial Instruments -
Disclosure and Presentation (CICA Handbook Sections 3862 and 3863).
Under Section 1535, the Corporation discloses its objectives, policies
and procedures for managing capital, any summary quantitative data about
what the Corporation manages as capital, whether the Corporation has
complied with any externally imposed capital requirements and, if the
Corporation has not complied with them, any consequences of non-
compliance with these capital requirements.
The new Sections 3862 and 3863 replace Section 3861 Financial Instruments
- Disclosure and Presentation. Disclosure requirements are revised and
enhanced, while presentation requirements remain essentially unchanged.
The new disclosure requirements expand discussion around the significance
of financial instruments for the Corporation`s financial position and
performance, the nature and extent of risks arising from financial
instruments to which the entity is exposed during the period and at the
balance sheet date and how the entity manages those risks.
Section 3031 establishes standards for the measurement and disclosure of
inventories and provides a Canadian equivalent to International
Accounting Standard IAS 2 - Inventories. The main recommendations of the
new Section 3031 are:
-Measurement of inventories at the lower of cost and net realizable
value, with guidance on the determination of cost, including allocation
of overheads and other costs to inventory.
-Specific identification of cost of inventories of items that are not
ordinarily interchangeable, and goods or services produced and segregated
for specific projects.
-Consistent use (by type of inventory with similar nature and use) of
either first-in, first-out (FIFO) or weighted average cost formula to
measure the cost of other inventories.
-Reversal of previous write-downs to net realizable value when there is a
subsequent increase in the value of inventories.
The adoption of Section 3031 on January 1, 2008, did not have a material
impact on our financial position or operating results.
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
3 DISCONTINUED OPERATIONS
On March 27, 2008 the Corporation entered into an agreement to sell its
shareholding in Aflease Gold. On April 8, 2008 the Corporation sold
152,195,122 shares for approximately $41 million (ZAR320 million)
equating to 43% of the Corporation`s investment in Aflease Gold,
decreasing the Corporation`s ownership to 38% of the common shares of
Aflease Gold. An option granted to the purchaser to acquire Uranium One
Africa`s remaining shareholding in Aflease Gold lapsed on May 8, 2008.
The Corporation and the purchaser are continuing discussions with regards
to a potential transaction in the remainder of the Corporation`s Aflease
Gold shares. The Board of Directors have approved the sale of the
remaining portion of Uranium One Africa`s shareholding. The assets and
liabilities have been classified as discontinued operations at their
carrying value, which is the fair value less transaction costs, based on
the terms of the purchase and option agreements. The fair value of the
152,195,122 shares sold was determined based on the market price on the
Johannesburg stock exchange ("JSE"). The fair value of the remaining
shareholding was determined using the weighted average market price on
the JSE. The impairment, net of future income taxation recovery, amounts
to $103.5 million.
The investment in Aflease Gold was reported as the Modder East Gold
Project for segment reporting purposes in previous periods.
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
3 DISCONTINUED OPERATIONS (CONTINUED)
Selected financial information of the discontinued operations included in
the Consolidated Statements of Operations and the Consolidated Statement
of Cash Flows are as follows:
Three month period ended
Mar 31, 2008 Mar 31, 2007
$`000 $`000
Net loss from discontinued operations
Revenue - -
Loss from discontinued operations (1,172) -
Interest and other expenses (433) -
Impairment (net of tax recovery - $56.8 (103,479) -
million)
Non-controlling interest 529 -
(104,555) -
Cash flows of discontinued operations
Cash flows to operating activities (6,941) -
Cash flows to investing activities (5,351) -
Effects of exchange rate changes on cash (13,741) -
and cash equivalents
(26,033) -
The major classes of assets and liabilities of the discontinued
operations in the Consolidated Balance sheets are as follows:
Mar 31, 2008 Dec 31, 2007
$`000 $`000
Assets
Cash 66,590 92,623
Accounts receivable, prepaids and other 4,390 2,321
Inventory 35 42
Current assets of discontinued operations 71,015 94,986
Mining interests, plant and equipment 85,430 285,553
Other assets 823 1,061
Non-current assets of discontinued 86,253 286,614
operations
Total assets of discontinued operations 157,268 381,600
Liabilities
Accounts payable, accrued liabilities and 1,591 5,080
other
Income taxes payable 139 165
Current liabilities of discontinued 1,730 5,245
operations
Future income and mining taxes 10,269 80,201
Convertible bonds 76,380 90,551
Other long term liabilities 921 1,085
Non-controlling interest 10,823 11,308
Non-current liabilities of discontinued 98,393 183,145
operations
Total liabilities of discontinued 100,123 188,390
operations
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
4 ACCOUNTS AND OTHER RECEIVABLES
Mar 31, 2008 Dec 31, 2007
$`000 $`000
Trade receivables 16,778 55,520
Value added tax and general sales tax 7,593 7,446
Prepayments and advances 6,190 5,558
Deposits and guarantees 2,838 3,220
Other receivables 1,694 1,794
35,093 73,538
Less: non current deposits and guarantees 2,838 3,220
included in other assets (note 9)
32,255 70,318
5 JOINT VENTURES
5.1 Proportionate interests in joint ventures
The Corporation owns the following interests in joint ventures:
Betpak Dala 70%
Kyzylkum 30%
Joint Venture with Uranium Power 50%
Corporation ("UPC")
Pitchstone 50%
The Corporation`s proportionate share of assets and liabilities are
as follows:
As at March 31, Betpak Dala Kyzylkum Joint Pitchstone Total
2008 Venture
with UPC
$`000 $`000 $`000 $`000 $`000
Cash 12,153 3,310 (7) (44) 15,412
Other current 43,360 650 5 74 44,089
assets
Mineral interests, 663,795 180,405 50,400 20,036 914,636
plant and
equipment
Other assets 3,747 3,941 1,154 - 8,842
Current (19,451) (1,276) 1 - (20,726)
liabilities
Long term debt(1) - (23,954) - - (23,954)
Other (1,565) (139) - - (1,704)
Future income (276,677) (72,252) - (5,607) (354,536)
taxes
Asset retirement (1,177) (72) - - (1,249)
obligation
Net assets 424,185 90,613 51,553 14,459 580,810
(1)In addition to the $66.7 million loan (note 5.2) from the Corporation,
Kyzylkum negotiated unsecured bank loan facilities totaling $100 million.
One facility in the amount of $70 million was obtained from the Japan
Bank for International Cooperation and the other facility in the amount
of $30 million was obtained from Citibank. A total of $20 million has
been drawn down from these facilities during the three month period ended
March 31, 2008 and $60 million for the year ended December 31, 2007. The
loan facilities will be repayable after full repayment of the loan from
the Corporation. The Corporation`s proportionate share of these
facilities will amount to $30 million when fully drawn down. The loan
facilities have floating interest rates of LIBOR plus 0.25% and 0.35%,
respectively.
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
5 JOINT VENTURES (continued)
As at December 31, Betpak Dala Kyzylkum Joint Pitchstone Total
2007 Venture
with UPC
$`000 $`000 $`000 $`000 $`000
Cash 1,643 3,659 224 77 5,603
Other current 73,039 291 5 68 73,403
assets
Mineral interests, 680,046 182,740 50,422 20,191 933,399
plant and
equipment
Other assets 4,070 4,771 1,093 - 9,934
Current (19,395) (900) 72 - (20,223)
liabilities
Long term debt - (18,205) - - (18,205)
Other (1,567) (135) - - (1,702)
Future income (280,075) (72,486) - (5,831) (358,392)
taxes
Asset retirement (3,377) - - - (3,377)
obligation
Net assets 454,384 99,735 51,816 14,505 620,440
The Corporation`s proportionate share of revenue, expenses, net income
and cash flows for the three month periods ended March 31, 2008 and 2007
are as follows:
Three month period Betpak Dala Kyzylkum Joint Pitchstone Total
ended March 31, Venture
2008 with UPC
$`000 $`000 $`000 $`000 $`000
Revenue 22,517 - - - 22,517
Expenses (4,949) (46) (221) (736) (5,952)
Foreign exchange (118) (7) - - (125)
loss
Income / (loss) 17,450 (53) (221) (736) 16,440
before income
taxes
Provision for (6,342) (33) - - (6,375)
income taxes
Net income / 11,108 (86) (221) (736) 10,065
(loss)
Cash flows (to) / 34,818 (308) (265) (657) 33,588
from operating
activities
Cash flows to (12,398) (4,148) (60) - (16,606)
investing
activities
Cash flows (to) / (11,909) 4,126 86 540 (7,157)
from financing
activities
Net increase / 10,511 (330) (239) (117) 9,825
(decrease) in cash
Three month period Betpak Dala Kyzylkum Total
ended March 31,
2007
$`000 $`000 $`000
Revenue 41,730 - 41,730
Expenses (11,611) - (11,611)
Foreign exchange (6,139) (1,394) (7,533)
loss
Income / (loss) 23,980 (1,394) 22,586
before income
taxes
Provision for (10,659) - (10,659)
income taxes
Net income / 13,321 (1,394) 11,927
(loss)
Cash flows from 59,510 288 59,798
operating
activities
Cash flows from (56,189) (750) (56,939)
investing
activities
Net increase / 3,321 (462) 2,859
(decrease) in cash
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
5 JOINT VENTURES (continued)
5.2 Loans to Joint Mar 31, 2008 Dec 31, 2007
Ventures
$`000 $`000
Current portion
Betpak Dala - 5,175
Kyzylkum 19,555 27,692
19,555 32,867
Long term portion
Betpak Dala - -
Kyzylkum 27,895 24,359
27,895 24,359
Total 47,450 57,226
During the 3 months ended March 31, 2008, Betpak Dala repaid the
principal amount of $5 million to the Corporation, together with $0.2
million of accrued interest.
Kyzylkum loan Mar 31, 2008 Dec 31, 2007
$`000 $`000
The Corporation made loans to Kyzylkum 73,333 80,000
pursuant to its obligation to provide
project financing for construction and
commissioning of the Kharasan Project in
the amount of $80 million on or before
December 31, 2007. The loans bear interest
at LIBOR plus 1.5% per annum, with interest
payable on a semi-annual basis, commencing
within two years of funding.
Repaid during three month period (6,667) (6,667)
66,666 73,333
Interest accrued 1,120 1,025
67,786 74,358
Less: elimination of proportionate share - (20,336) (22,307)
30%
47,450 52,051
Less: current portion (19,555) (27,692)
Long term portion 27,895 24,359
The loans to Kyzylkum are unsecured.
6 INVENTORIES
Mar 31, 2008 Dec 31, 2007
$`000 $`000
Finished uranium concentrates 15,309 10,093
Solutions and concentrates in process 8,710 5,731
Product Inventory 24,019 15,824
Materials and supplies 3,419 5,128
Stockpiles 7,772 7,772
35,210 28,724
Less: non-current inventory included in 7,772 7,772
other assets (note 9)
27,438 20,952
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
7 MINERAL INTERESTS, PLANT AND EQUIPMENT
March 31, 2008 Cost Accumulated Net carrying
amortization amount
$`000 $`000 $`000
Mineral interests 3,961,054 (36,493) 3,924,561
Plant and equipment 592,205 (10,148) 582,057
4,553,259 (46,641) 4,506,618
December 31, 2007 Cost Accumulated Net carrying
amortization amount
$`000 $`000 $`000
Mineral interests 4,247,457 (32,771) 4,214,686
Plant and equipment 566,612 (6,316) 560,296
4,814,069 (39,087) 4,774,982
A summary by property of the net book value is as follows:
Mineral interests Plant and Total
equipment
March 31, Deple- Non- Total
2008 table depletable
Country $`000 $`000 $`000 $`000 $`000
Akdala Kazakhstan 108,284 74,358 182,642 16,698 199,340
Uranium
Mine
South Kazakhstan - 403,779 403,779 60,676 464,455
Inkai
Uranium
Project
Kharasan Kazakhstan - 146,081 146,081 34,324 180,405
Uranium
Project
Dominion South Africa - 1,479,053 1,479,053 318,019 1,797,072
Uranium
Project
United United - 279,422 279,422 7,546 286,968
States States
developmen
t projects
United United - 1,019,400 1,019,400 2,435 1,021,835
States States
exploratio
n projects
Hobson United - 56,869 56,869 36,891 93,760
Facility States
and La
Palangana
Project
Shootaring United - 50,361 50,361 49,379 99,740
Canyon States
Mill
Honeymoon Australia - 286,502 286,502 31,277 317,779
Uranium
Project
Pitchstone Canada - 20,210 20,210 - 20,210
exploratio
n
Corporate - 243 243 24,811 25,054
and other
Total 108,284 3,816,278 3,924,562 582,056 4,506,618
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
7 MINERAL INTERESTS, PLANT AND EQUIPMENT (continued)
Mineral interests Plant and Total
equipment
December 31, Depleta Non- Total
2007 ble depletable
Country $`000 $`000 $`000 $`000 $`000
Akdala Kazakhstan 111,302 74,358 185,660 15,906 201,566
Uranium Mine
South Inkai Kazakhstan - 422,631 422,631 31,388 454,019
Uranium
Project
Kharasan Kazakhstan - 146,538 146,538 29,376 175,914
Uranium
Project
Dominion South Africa - 1,756,018 1,756,018 350,146 2,106,164
Uranium
Project
United States United - 278,654 278,654 7,184 285,838
development States
projects
United States United - 1,020,759 1,020,759 1,285 1,022,044
exploration States
projects
Hobson United - 56,869 56,869 33,503 90,372
Facility and States
La Palangana
Project
Shootaring United - 50,009 50,009 47,614 97,623
Canyon Mill States
Honeymoon Australia - 276,087 276,087 23,951 300,038
Uranium
Project
Pitchstone Canada - 21,216 21,216 - 21,216
exploration
Corporate and - 245 245 19,943 20,188
other
Total 111,302 4,103,384 4,214,686 560,296 4,774,982
8 AVAILABLE FOR SALE SECURITIES
Mar 31, 2008 Dec 31, 2007
Market value Market value
$`000 $`000
Available for sale securities 16,598 21,257
Movement in available for sale
securities
$`000
Balance as at January 1, 2007 -
Received as part of a joint venture 1,268
earn-in payment
Purchased as part of the EMC 20,391
acquisition
Purchased during the period 278
Impairment of available for sale (932)
securities included in the statement
of operations
Foreign exchange movement 64
Fair value adjustment included in 188
other comprehensive income
Balance as at December 31, 2007 21,257
Received as part of a joint venture 436
earn-in payment
Disposed during the period (3,477)
Impairment of available for sale (657)
securities included in the statement
of operations
Foreign exchange movement (88)
Fair value adjustment included in (873)
other comprehensive income
Balance as at March 31, 2008 16,598
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
8 AVAILABLE FOR SALE SECURITIES (continued)
During the period the Corporation disposed of available for sale
securities with a fair market value of $3.5 million at December 31, 2007.
The securities had a cost basis of $3.1 million and fair value losses
included in other comprehensive income of $0.3 million. Proceeds on the
sale of these securities was $2.4 million which resulted in a loss on
sale of securities of $0.7 million.
By holding these long-term investments the Corporation is inherently
exposed to various risk factors including currency risk, market price
risk and liquidity risk (note 18).
9 OTHER ASSETS
Mar 31, 2008 Dec 31, 2007
$`000 $`000
Advances for plant and equipment 8,535 12,643
Long term deposits and guarantees (note 2,838 3,220
4)
Long term inventory (note 6) 7,772 7,772
Asset retirement fund 19,430 20,316
Advances for future services 10,222 10,629
Reclamation bond payment on behalf of UPC 1,033 1,094
joint venture
Other 1,279 869
51,109 56,543
10 ASSETS HELD FOR SALE
In March 2008 the Corporation decided to sell the Aurora property, owned
100% through Quincy Energy Corporation and consolidated into these
financial statements. The Corporation classified this asset as non-core
and formal approval to sell the asset was granted by the Board in the
first quarter of 2008. The property is carried at its fair value. The
asset was previously presented as part of the US exploration projects
segment.
Mar 31, 2008 Dec 31, 2007
$`000 $`000
Mineral interests 52,371 52,371
Future income tax liabilities 19,819 19,819
11 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Mar 31, 2008 Dec 31, 2007
$`000 $`000
Trade payables 30,333 25,334
Accruals 19,279 24,461
Commodity and other taxes payable 278 11,280
Other 1,637 9,727
51,527 70,802
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
12 SHARE CAPITAL
Issued and outstanding common shares Number of Value of
shares shares
$`000
Common shares on January 1, 2007 480,240,704 613,607
Exercise of warrants 481,000 82
Exercise of stock options 1,866,807 7,601
Common shares on April 20, 2007 482,588,511 621,290
Conversion of UrAsia Energy shares to 217,164,830 621,290
Uranium One shares at a ratio of 0.45
Shares of Uranium One owned by Uranium One 138,129,435 1,709,647
shareholders at acquisition
Exercise of warrants 150,000 2,033
Exercise of stock options and restricted 4,354,617 47,311
shares
U.S. Energy asset purchase consideration 6,607,605 99,401
EMC asset purchase consideration 100,444,543 1,013,215
Shares issued for services rendered 322,393 3,987
Common shares on December 31, 2007 467,173,423 3,496,884
Exercise of warrants 150,000 2,105
Exercise of stock options 318,125 2,711
Balance of issued and outstanding common 467,641,548 3,501,700
shares at March 31, 2008
13 CONTRIBUTED SURPLUS
The following table details the movements of contributed surplus during
the period:
Restricted
Warrants shares Options Total
$`000 $`000 $`000 $`000
As at January 1, 2007 - - 31,286 31,286
Issued on Uranium One / 26,407 853 34,782 62,042
UrAsia Energy business
combination
Issued on EMC asset - - 35,307 35,307
acquisition
Stock options issued and - - 33,734 33,734
vested
Stock options exercised - - (29,213) (29,213)
Restricted shares vested - 3,926 - 3,926
Restricted shares exercised - (1,660) - (1,660)
Warrants exercised (1,035) - - (1,035)
As at December 31, 2007 25,372 3,119 105,896 134,387
Stock options issued and - - 5,840 5,840
vested
Stock options exercised - - (1,611) (1,611)
Restricted shares vested - 359 - 359
Warrants exercised (1,062) - - (1,062)
As at March 31, 2008 24,310 3,478 110,125 137,913
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
13 CONTRIBUTED SURPLUS (continued)
Assumptions
The fair value of stock options and restricted shares used to calculate
the compensation expense was estimated using the Black scholes option
pricing model with the following assumptions:
Mar 31, Mar 31,
2008 2007
Risk free interest rate 3.15% 3.81% - 4.11%
Expected dividend yield 0% 0%
Expected volatility of the Uranium One`s 66% 60%
share price
Expected life 5 years 5 years
Options
Under Uranium One`s Stock Option Plan, options granted are non-assignable
and may be granted for a term not exceeding ten years. The plan is
administered by the Board of Directors, which determines individual
eligibility under the plan, number of shares reserved underlying the
options granted to each individual (not exceeding 5% of issued and
outstanding shares to any insider and not exceeding 1% of the issued and
outstanding shares to any non-employee director on a non-diluted basis)
and any vesting period which, pursuant to the stock option plan was
previously one-third on the grant date, one-third on the first
anniversary of the grant date and the remainder on the second anniversary
of the grant date. On December 8, 2006 the Board of Directors decided to
adopt an amended vesting schedule such that any options granted on and
after December 8, 2006, would vest as to one-third on the first
anniversary of the grant date, one-third on the second anniversary of the
grant date and one-third on the third anniversary of the grant date. The
maximum number of shares of Uranium One that are issuable pursuant to the
plan is limited to 7.2% of issued and outstanding shares.
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
13 CONTRIBUTED SURPLUS (continued)
The following is a summary of Uranium One`s options granted under its
stock-based compensation plan:
Weighted
Number of average
options exercise price
Cdn $
Outstanding options at January 1, 2007 21,658,500 2.90
Granted up to April 20, 2007 1,935,000 5.99
Exercised up to April 20, 2007 (1,866,807) 2.11
Forfeitures of stock options up to April (30,000) 1.80
20, 2007
Outstanding options as at April 20, 2007 21,696,693 5.86
Converted UrAsia Energy stock options on 9,763,498 7.33
date of business combination
Existing Uranium One stock options on 5,390,754 6.67
April 20, 2007
EMC replacement options 8,382,546 8.14
Granted subsequent to April 20, 2007 1,867,817 15.27
Exercised subsequent to April 20, 2007 (4,228,640) 5.14
Forfeitures of stock options subsequent (351,187) 13.14
to April 20, 2007
Outstanding options as at December 31, 20,824,788 8.55
2007
Granted options 84,252 5.41
Exercised options (318,125) 3.46
Forfeitures of stock options (310,463) 10.47
Outstanding options as at March 31, 2008 20,280,452 8.58
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
13 CONTRIBUTED SURPLUS (continued)
The stock option compensation expense for the period ended March 31, 2008
was $5.8 million and for the period ended March 31, 2007 was $3.4
million. As at March 31, 2008, the aggregate unexpensed fair value of
unvested stock options granted amounted to $12.4 million. The fair value
of options granted during the period amounts to $0.2 million.
The following table summarizes certain information about Uranium One`s
stock options outstanding at March 31, 2008:
Options outstanding Options exercisable
Number Weighted Weighted Number Weighted Weighted
Outstay- average average Exerci- average average
nding sable
as at remaining exercise as at remaining exercise
Range of Mar 31, life price Mar 31, life price
Exercise 2008 2008
Prices
Cdn $ (years) Cdn $ (years) Cdn $
1.09 to 2.74 1,427,621 2.20 2.36 1,427,621 2.20 2.36
3.03 to 4.81 3,107,375 3.16 4.00 3,105,535 3.16 4.00
5.00 to 7.79 3,672,852 4.99 6.60 3,427,292 4.99 6.65
8.26 to 9.90 5,651,663 4.39 8.42 5,496,201 4.39 8.41
10.40 to 3,926,025 4.60 12.05 2,499,580 4.60 12.03
11.91
12.02 to 1,020,266 5.58 14.32 407,002 5.58 14.92
13.70
14.12 to 1,474,650 3.76 16.58 276,850 3.76 16.76
16.87
20,280,452 4.28 8.58 16,640,081 4.28 7.55
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
13 CONTRIBUTED SURPLUS (continued)
Restricted shares
Under the Uranium One Restricted Share Plan, restricted share rights are
granted to eligible employees, contractors and directors. Each restricted
share right is exercisable for one common share of Uranium One at the end
of the restricted period for no additional consideration. The vesting
period is generally two-thirds on the first anniversary of the grant date
and the remainder on the second anniversary of the grant date. The
aggregate maximum number of shares available for issuance under the
restricted share plan was initially capped at one million and
subsequently increased to three million at Uranium One`s annual and
special meeting held on June 7, 2007. The number of shares for issuance
to non-employee directors may not exceed 0.5% of the total number of
common shares outstanding on a non-diluted basis.
The following is a summary of Uranium One`s restricted shares issued
under the Restricted Share Plan:
Number of restricted shares
Mar 31, Dec 31,
2008 2007
Balance at beginning of the period 295,532 404,231
Granted - 20,000
Exercised during the period - (125,977)
Expired - (2,722)
Balance at the end of the period 295,532 295,532
Of the outstanding number of Restricted share rights, the grant date was
July 1, 2007 for 20,000 Restricted share rights, December 8, 2006 for
50,440 Restricted share rights, and June 7, 2006 for 225,092 Restricted
share rights. Restricted share rights will not expire while the
participant is employed by the Corporation.
The Restricted share rights expense for the period ended March 31, 2008
was $359,362 and for the period ended March 31, 2007 was $Nil. As at
March 31, 2008 the aggregate unexpensed fair value of unvested restricted
share rights granted amounted to $444,324.
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
13 CONTRIBUTED SURPLUS (continued)
Number of warrants Allocated value
Warrants Mar 31, 2008 Dec 31, 2007 Mar 31, Dec 31,
2008 2007
$`000 $`000
Balance at beginning of 2,581,619 2,731,619 25,372 26,407
the period
Exercised during the (150,000) (150,000) (1,062) (1,035)
period
Balance at the end of the 2,431,619 2,581,619 24,310 25,372
period
Warrants comprise: Number of warrants Allocated value
Mar 31, 2008 Dec 31, 2007 Mar 31, Dec 31,
2008 2007
2008 Warrants 2,431,619 2,431,619 3.55 3.55
Series D Warrants - 150,000 - 6.95
Total 2,431,619 2,581,619 3.55 3.75
The 2008 warrants expire on September 24, 2008.
Contingently issuable shares
Under the terms of the acquisition agreement for the Kyzylkum JV
interest, Uranium One is obligated to issue 6,964,200 common shares of
Uranium One upon commencement of commercial production from Kharasan.
The Corporation has assumed all of the obligations of EMC and its
subsidiaries arising under certain option and joint venture agreements
with third parties. Uranium One has reserved a total of 1,925,100 common
shares of Uranium One for issuance pursuant to the assumed obligations
under the Contingent Share Rights Agreements.
14 FOREIGN EXCHANGE (LOSSES) / GAINS
A summary of the foreign exchange loss by item is as follows:
Mar 31, Mar 31,
2008 2007
$`000 $`000
Unrealized foreign exchange gain / (loss) 1,138 (8,601)
gain on future income tax liability
Unrealized foreign exchange gain on other 1,075 1,384
items
Realized foreign exchange loss on other (4,839) (214)
items
(2,626) (7,431)
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
15 CASH FLOW INFORMATION
Mar 31, Mar 31,
2008 2007
$`000 $`000
Changes in non-cash working capital
excluding business combinations:
- Decrease in accounts and other 35,451 20,507
receivables
- (Increase) / decrease in accrued (67) 349
interest receivable on loans to joint
ventures
- Decrease / (increase) in prepaid 17,917 (198)
expenses and other
- (Increase) / decrease in inventories (5,970) 1,501
- (Decrease) / increase in accounts (14,166) 2,143
payable and accrued liabilities
- Increase in income taxes payable 5,981 5,892
39,146 30,194
Supplemental cash flow information
Cash interest paid - -
Cash taxation paid 7,998 5,830
16 BASIC AND DILUTED WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
Mar 31, Mar 31,
2008 2007
Basic weighted-average number of 467,451 216,327
shares outstanding (`000)
Effect of dilutive securities:
- stock options - 5,270
- warrants - 90
Diluted weighted-average number of 467,451 221,687
shares outstanding
For the period ended March 31, 2008, convertible debentures, stock
options, warrants and restricted shares were not included in the dilutive
weighted average number of shares outstanding as they were anti-dilutive.
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
17 CAPITAL DISCLOSURES
The Corporation`s objectives when managing capital are to:
(i) Maintain a flexible capital structure which optimizes the cost of
capital at acceptable risk;
(ii) Continue the development and exploration of its mineral properties;
and
(iii) Support any expansion plans.
In the management of capital, the Corporation includes shareholders`
equity, long term debt, cash and the current portion of loans to joint
ventures.
The Corporation manages its capital structure and makes adjustments to it
when the economic and risk conditions of the underlying assets require
change. In order to maintain or adjust the capital structure, the
Corporation may issue new shares, issue new debt, and/or issue new debt
to replace existing debt with different characteristics. The Corporation
has in place a rigorous planning and budgeting process to help determine
the funds required to ensure the Corporation has the appropriate
liquidity to meet its operating and growth objectives.
The Corporation monitors the following ratios in this respect: total
debt to total capitalization and net debt to total capitalization.
Mar 31, Dec 31,
For periods ended 2008 2007
$`000 $`000
Total debt (excluding future income tax 352,590 460,265
liabilities)
Net debt (total debt less cash, 140,554 197,488
receivables, and current portion of loans
to joint ventures)
Total capitalisation (total shareholders` 3,316,135 3,682,905
equity)
Total debt ratio 11% 12%
Net debt ratio 4% 5%
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
18 FINANCIAL INSTRUMENTS
The Corporation`s financial instruments primarily consist of cash, short-
term money market investments, marketable securities, accounts
receivable, accounts payable and convertible debentures. For cash, short-
term money market investments, and current accounts receivable and
payable, carrying value is considered to be a reasonable approximation of
fair value due to the short term nature of these investments. The fair
value of the convertible debentures represents the quoted market value.
Convertible debentures Mar 31, Dec 31,
2008 2007
$`000 $`000
Liability component 135,156 136,548
Equity component 46,480 46,480
181,636 183,028
Fair value 128,816 145,888
The Corporation`s activities expose it to a variety of financial risks,
including the effects of changes in debt and equity market prices,
foreign currency exchange rates and interest rates. The global nature of
the Corporation`s business exposes the reported financial results and
cashflows of operating segments to risks arising from fluctuations in
exchange rates.
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
18. FINANCIAL INSTRUMENTS (continued)
The Corporation continuously monitors its exposure to risk. The risk
management carried out by the Corporation is approved by the board of
directors. The following describes the type of risks that the Corporation
is exposed to and its objectives and policies for managing those risk
exposures.
Foreign exchange risk
The foreign exchange risk relates to the risk that the value of financial
commitments, recognized assets or liabilities will fluctuate due to
changes in foreign currency rates.
The most significant impact of foreign exchange on the Corporation`s net
earnings and other comprehensive income is the translation of foreign
operations into US dollars. The effect of translating the financial
statements of the entities that are determined to be integrated foreign
operations are included in the consolidated statements of operations, and
the effect of translating the financial statements of entities that are
determined to be self-sustaining are included in other comprehensive
income.
The Corporation also has foreign exchange risk arising from:
- borrowings denominated in foreign currencies; and
- firm commitments or highly probable forecasted transactions for
receipts and payments settled in foreign currencies or with prices
dependent on foreign currencies.
The Corporation does not hedge its exposure to foreign currency exchange
risk.
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
18 FINANCIAL INSTRUMENTS (continued)
The Corporation is primarily exposed to foreign currency risk through the
following assets and liabilities denominated in currencies other than US
dollars:
Non-financial
Financial assets and liabilities assets and
liabilities
March 31, Cash and Accounts Accounts Convertib Mineral Future
2008 cash receivable payable and le deben- interest income
equivale accrued tures plant and tax
nts liabilities equipment( liabi-
1) lities
$`000 $`000 $`000 $`000 $`000 $`000
Canadian 32,823 3,466 15,673 135,156 20,210 5,607
dollar
South 601 16,458 19,600 - 1,797,072 474,495
African rand
Kazakhstan 15,823 6,909 3,708 - - 348,929
tenge
Australian 19,992 551 7,101 - 317,779 72,361
dollar
69,239 27,384 46,082 135,156 2,135,061 901,392
Non-financial
Financial assets and liabilities assets and
liabilities
December Cash and Accounts Accounts Converti Mineral Future
31, 2007 cash receivable payable and ble interest income
equivalent accrued debentur plant and tax
s liabilities es equipment(1) liabi-
lities
$`000 $`000 $`000 $`000 $`000 $`000
Canadian 78,938 3,683 10,357 136,548 21,216 5,831
dollar
South 1,330 9,606 33,168 - 2,106,164 567,577
African
rand
Kazakhstan 2,787 3,128 16,411 - - 351,207
tenge
Australian 24,966 558 5,540 - 300,038 69,039
dollar
108,021 16,975 65,476 136,548 2,427,418 993,654
246 Only includes mineral interests, plant and equipment of self
sustaining operations.
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
246 FINANCIAL INSTRUMENTS (continued)
The following table shows the effect on profit and other comprehensive
income after tax as at March 31, 2008 of a 10 percent appreciation or
depreciation in the foreign currencies against the US dollar on the
abovementioned financial and non-financial assets and liabilities of the
Corporation.
Other
comprehensive Net
income earnings
10% appreciation in exchange rates, with 175,266 (37,603)
all other variables held constant
A 10% depreciation in exchange rates would have the exact opposite effect
on other comprehensive income and net earnings.
246 Credit risk
Credit risk is primarily associated with trade receivables, however, it
also arises on cash equivalents.
The Corporation closely monitors its financial assets and does not have
any significant concentration of credit risk. The Corporation sells its
products exclusively to organizations with strong credit ratings. Cash
and cash equivalents are held through large international financial
institutions. Cash and cash equivalents are comprised of financial
instruments issued by Canadian banks and companies with high investment-
grade ratings. These investments mature at various dates over the current
operating period.
The Corporation`s maximum exposure to credit risk at the balance sheet
date is as follows:
Mar 31, 2008 Dec 31, 2007
$`000 $`000
Short-term money market instruments 44,763 12,059
Accounts receivable 35,093 73,538
Marketable securities 16,598 21,257
96,454 106,854
246 Liquidity risk
The Corporation has a cash forecast and budgeting process in place to
assist with the determination of funds required to support the
Corporation`s operating requirements on an ongoing basis and its
expansion plans. The Corporation manages liquidity risk through the
management of its capital structure and financial leverage as outlined in
note 17.
The following table summarizes the contractual maturities of the
Corporation`s financial liabilities
Less than 1 to 3 4 to 5 After 5 Total
1 year years years years
Lease obligations 1,206 3,629 1,216 2,011 8,062
Capital 19,477 16,839 7,069 - 43,385
commitments
Asset retirement - - - 27,081 27,081
obligations
Accounts payable 51,527 - - - 51,527
and accrued
liabilities
Convertible - 155,200 - - 155,200
debentures
72,210 175,668 8,285 29,092 285,255
The convertible debenture is convertible in cash or shares, and may not
result in a cash outflow.
The Corporation has interests in Joint Ventures, and is responsible for
partial funding of these Joint Ventures pursuant to the terms of the
Joint Venture agreements. The Corporation does not bear direct liquidity
risk for liquidity of these joint ventures.
(iv) Interest rate risk
The Corporation is exposed to interest rate risk on its outstanding
borrowings and short-term investments. The only outstanding interest-
bearing borrowings as at March 31, 2008 is the loan facility obtained by
Kyzylkum (refer note 5.1) which bears interest at floating rates, and the
convertible debentures, with a fixed interest rate.
A 100 basis points movement in the interest rate would impact the
Corporation`s net earnings as follows:
Mar 31, 2008 Dec 31,
2007
$`000 $`000
10% appreciation in interest rates, with all 50 44
other variables held constant
A 10% depreciation in the interest rate would have the exact opposite
effect on net earnings.
(v) Commodity price risk
The Corporation is exposed to price risk with respect to commodity
prices. The Corporation does not hedge its exposure to price risk, other
than the pricing structures in the long term sales contracts which the
Corporation has entered into. Increases in uranium prices would have a
positive impact on profitability given that the majority of the
Corporation`s sales contracts are priced based on market values for
uranium.
A 10% change in commodity prices would impact the Corporation`s net
earnings as follows:
Mar 31, Dec 31,
2008 2007
$`000 $`000
10% appreciation in commodity prices, with 2,252 4,173
all other variables held constant
A 10% depreciation in the commodity price would have the exact opposite
effect on net earnings.
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
246 SEGMENTED INFORMATION
The Corporation`s reportable operating segments are summarized in the
table below:
For the three month period ended March 31, 2008: (in $`000)
Net
Country Revenue Opera- Depre- Explo- earnings / Capital
ting ciation ration
expense and Expen- (loss) Expen-
s depletio diture diture
n
Akdala Kazakhstan 22,517 (3,292) (2,931) - 9,177 2,319
Uranium
Mine
South Kazakhstan - - - - 340 7,529
Inkai
Uranium
Project
Kharasan Kazakhstan - - - - 183 5,038
Uranium
Project
Dominion South - - - (52) (447) 23,639
Uranium Africa
Project
US United - - - - (20) 2,624
Developmen States
t projects
US United - - - (369) 95 223
Exploratio States
n projects
Hobson United - - - - (105) 3,496
facility States
and
La
Palangana
Project
Shootaring United - - - - (57) 1,490
Canyon States
Mill
Honeymoon Australia - - - (277) (714) 6,383
Uranium
Project
and
exploratio
n
Pitchstone Canada - - - (736) (736) -
exploratio
n
Corporate - - - (246) (18,031) 1,276
and other
Total 22,517 (3,292) (2,931) (1,680) (10,315) 54,017
For the three month period ended March 31, 2007: (in $`000)
Net
Country Revenue Opera- Depre- Explo- earnings Capital
ting ciation ration /
expenses and Expendi- (loss) Expen-
deple- ture diture
tion
Akdala Kazakhstan 41,730 (7,043) (4,835) - 13,392 9,121
Uranium
Mine
South Kazakhstan - - - - - 7,572
Inkai
Uranium
Project
Kharasan Kazakhstan - - - - (1,394) -
Uranium
Project
Corporate - - (24) (1,459) (4,027) -
and other
Total 41,730 (7,043) (4,859) (1,459) 7,971 16,693
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements - Unaudited
as at March 31, 2008 and December 31, 2007
19 SEGMENTED INFORMATION (continued)
As at March Mineral
31, 2008:
(in $`000)
interest,
plant
Country and Total Future Total
equipment assets income tax liabilities
liabilities
Akdala Kazakhstan 199,340 223,197 72,286 86,385
Uranium Mine
South Inkai Kazakhstan 464,455 468,718 204,391 211,662
Uranium
Project
Kharasan Kazakhstan 180,405 187,934 72,252 97,649
Uranium
Project
Dominion South 1,797,072 1,818,799 474,495 497,839
Uranium Africa
Project
US United 286,968 286,968 90,532 91,757
Development States
projects
US United 1,021,835 1,027,027 349,885 351,261
Exploration States
projects
Hobson United 93,760 95,467 19,834 21,686
facility and States
La Palangana
Project
Shootaring United 99,740 114,760 18,613 21,570
Canyon Mill States
Honeymoon Australia 317,779 318,596 72,361 79,589
Uranium
Project and
exploration
Pitchstone Canada 20,210 20,240 5,607 5,698
exploration
Corporate 25,054 281,001 3,365 151,173
and other
Total 4,506,618 4,842,707 1,383,621 1,616,269
As at Mineral
December 31,
2007: (in
$`000)
interest,
plant
Country and Total Future Total
equipment assets income tax liabilities
liabili-
ties
Akdala Kazakhstan 201,566 266,240 73,623 94,710
Uranium Mine
South Inkai Kazakhstan 454,019 457,510 205,053 207,461
Uranium
Project
Kharasan Kazakhstan 175,914 184,283 72,486 92,422
Uranium
Project
Dominion South 2,106,164 2,111,565 567,577 598,102
Uranium Africa
Project
US United 285,838 285,838 90,517 92,187
Development States
projects
US United 1,022,044 1,027,423 350,410 354,391
Exploration States
projects
Hobson United 90,372 91,879 19,729 22,639
facility and States
La Palangana
Project
Shootaring United 97,623 112,894 18,613 21,186
Canyon Mill States
Honeymoon Australia 300,038 300,043 69,039 86,613
Uranium
Project and
exploration
Pitchstone Canada 21,216 21,360 5,831 5,831
exploration
Corporate 20,188 319,891 3,362 146,241
and other
Total 4,774,982 5,178,926 1,476,241 1,721,783
Date: 15/05/2008 08:00:01 Produced by the JSE SENS Department.
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