| Wed 11 Jun 2008, 7:27 | | FUM - First Uranium Corporation - First Uranium reports result for year ended |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium reports result for year ended
March 31, 2008
First Uranium Corporation
(Continued under the laws of British Columbia, Canada)
(Registration number C0777384)
(South African registration number 2007/009016/10)
Share code: FUM ISIN: CA33744R1029
FIRST URANIUM CORPORATION
FIRST URANIUM REPORTS RESULT FOR YEAR ENDED MARCH 31, 2008
All amounts are in US dollars unless otherwise noted.
For a full discussion of results, the Financial Statements and Management
Discussion & Analysis, please see the Company`s website, www.firsturanium.com
under "Regulatory Filings"
Toronto and Johannesburg - First Uranium Corporation (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium" or "the Company") today announced its
financial results for the year ended March 31, 2008 ("FY 2008"). First Uranium
is currently focused on the rehabilitation and bringing into production of the
Ezulwini underground uranium and gold mine (the "Ezulwini Mine") and the
expansion of Mine Waste Solutions ("MWS"), which recovers gold, and upon full
commissioning of the uranium plant scheduled for completion by the end of
February 2009, uranium by reprocessing surface tailings from the Buffelsfontein
mine.
References to "FY 2007" refer to the Company`s financial year ended March 31,
2007. References to "Q4 2008" and "Q4 2007" refer to the Company`s three months
ending March 31, 2008 and March 31, 2007, respectively. References to "Q1 2009"
refer to the Company`s three-month period ending June 30, 2008.
Highlights
During Q4 2008, First Uranium:
produced and sold a total of 9,995 ounces of gold from the Ezulwini Mine and MWS
at an average selling price of $888 per ounce
generated revenue of $6.4 million from MWS, resulting in $2.8 million gross
profit, net of total cost of sales (see table "Summary of Operating Results")
on March 20, 2008, the South African Department of Minerals and Energy consented
to an application from Simmer and Jack Mines, Limited ("Simmer & Jack") to cede
the Ezulwini mining rights from Simmer & Jack to the Company`s subsidiary, the
Ezulwini Mining Company (Pty) Limited ("EMC")
During FY 2008, First Uranium:
produced and sold a total of 35,927 ounces of gold from the Ezulwini Mine and
MWS at an average selling price of $784 per ounce
generated revenue of $21.4 million from MWS, resulting in $4.8 million gross
profit, net of total cost of sales (see table "Summary of Operating Results")
ended FY 2008 with $164.7 million of cash and cash equivalents on hand
toll-treated 46,271 tonnes of ore from the Ezulwini Mine at a recovered grade of
5.2 grams of gold per tonne, producing 7,735 ounces of gold
treated a total of 4.1 million tonnes of tailings through the MWS gold plant at
a recovered grade of 0.22 grams of gold per tonne, producing a total of 28,192
ounces of gold at a cash cost of $533 per ounce (see note (b) to the table
"Summary of Operating Results")
Subsequent to the end of Q4 2008, First Uranium:
approved a plan and entered into agreements to supplement the power supplied by
the South African national power utility, Eskom, by obtaining and installing
diesel-fired generators and a power plant to secure a steady supply of
electrical power with a total capacity of 54 megawatts ("MW"), inclusive of
existing stand-by units, to the two operations until Eskom could be expected to
restore a steady, reliable supply of electrical power
approved, subject to financing, a plan to build an acid plant at MWS to secure a
low-cost supply of sulphuric acid, a necessary reagent for the production of
uranium, from the sulphur contained in the pyritic material within the tailings
dams, which are already being processed for gold
commenced wet commissioning of the Ezulwini 200,000 tonne per month gold plant
during May 2008
completed the upgrading of the MWS gold plant to increase the design capacity
from 500,000 tonnes per month to 633,000 tonnes per month during May 2008
on June 9, 2008, the Company was notified by Eskom that it will be able to
increase its supply of power to the Ezulwini Mine from 40 MW to 55 MW, which is
expected to reduce the Company`s requirement and cost to generate its own power.
Further updates will be provided in due course.
During Q1 2009, First Uranium plans to:
hoist and stockpile 30,000 tonnes of ore, of which 18,000 tonnes would come from
gold and uranium bearing ore in the ME reef horizon and 12,000 tonnes would come
from gold bearing ore in the UE reef horizon, resulting in a stockpiled
inventory of 157,500 tonnes containing:
2,800 ounces of gold from the existing stockpile of 127,500 tonnes at an average
recoverable grade of 0.7 grams per tonne
an additional 5,600 ounces of gold from the newly stockpiled 30,000 tonnes at an
average recovery grade of 5.8 grams per tonne
23,760 pounds of uranium from the newly stockpiled 18,000 tonnes of ME ore at an
average recovery grade of 0.6 kilograms per tonne
continue commissioning the Ezulwini Mine`s gold plant, with the first 50,000
tonne per month module on schedule for production of gold on carbon in June 2008
and gold bullion in July 2008
commence final commissioning of the Ezulwini Mine`s uranium plant in June 2008
process 1.7 million tonnes of tailings through the MWS gold plant at a yield of
approximately 0.15 grams of gold per tonne, with expected production in excess
of 8,100 ounces of gold
"By mining industry standards, we have accomplished a lot in a very short time,"
said Gordon Miller, President and Chief Executive Officer of First Uranium. "At
MWS we accelerated our gold production by a year with the acquisition of a gold
plant in June 2007. At the Ezulwini Mine we accelerated by three months our
target to begin commissioning the gold plant, met that target and are on plan to
begin to commission the uranium plant this month. Meeting our production
deadlines sets us apart from many of our competitors and is noteworthy given the
scarcity for steel and cement for construction, sulphuric acid for uranium
production and, in South Africa, electrical power.
"Risk mitigation has also been a high priority and is designed to ensure that we
meet our future production targets. For example, we have now completed the
majority of the work to stabilize our main shaft against movement of the
surrounding rock in the Western Area Formation, acquired generators to reduce
exposure to any further power shortages in South Africa and, subject to
financing, we are planning to build an acid plant to secure a low-cost supply of
sulphuric acid, which is needed to produce uranium. We believe that by taking
this risk adverse approach, investors will be assured that we can continue to
achieve our goals and be good stewards of their investment in First Uranium."
Summary of Operating Results
Q4 Q4 FY FY
2008 2007 2008 2007
Gold ounces produced and sold 7,315 - 28,192 -
at MWS
Gold ounces produced and sold 2,680 - 7,735 -
at Ezulwini Mine
Average realized gold price 888 - 784 -
per ounce(a)
Cash cost per ounce(b) 455 - 533 -
(millions of dollars, except
per share amounts)
Revenue(c) 6.4 - 21.4 -
Cost of sales (excluding (3.3) - (15.0) -
amortization)(b)
Amortization (0.3) - (1.6) -
Loss for the period (26.9) (2.7) (22.3) (7.9)
Basic and diluted loss per (0.21) (0.02) (0.18) (0.08)
share
Cash flows utilized by (23.8) (15.7) (1.7) (15.7)
operations
(a) The average realized gold price per ounce has been
calculated on total revenue generated from both MWS and the
Ezulwini Mine divided by the total ounces sold by both
operations.
(b) Cash cost per ounce is the cost directly related to
the physical activities of producing gold, and include
mining, processing and other plant costs, third-party
refining and smelting costs, marketing expense, on-site
general and administrative costs, royalties, in-mine
drilling expenditures that are related to production and
other direct costs. Sales of by-product metals are deducted
from the above in computing cash costs. Cash costs exclude
depreciation, depletion and amortization, corporate general
and administrative expense, exploration, interest, and pre-
feasibility costs and accruals for mine reclamation. Cash
costs are calculated and presented using the "Gold Institute
Production Cost Standard" applied consistently for all
periods presented. The cash costs per ounce stated above
only include costs relating to MWS.
(c) Revenue excludes revenue of $2.5 million for Q4 2008
and $6.7 million for FY 2008 generated from the Ezulwini
Mine that has been credited against mine infrastructure
costs as the mine is still in a ramp-up phase and has not
yet achieved commercial levels of production.
With the acquisition in June 2007 of MWS, an existing tailings treatment
company, First Uranium commenced gold production one year ahead of the original
schedule established at the time of the Company`s initial public offering (the
"IPO") in December 2006. MWS sold a total of 7,315 ounces of gold during Q4 2008
and 28,192 ounces during FY 2008 at an average selling price of $875 per ounce
and $759 per ounce, respectively.
During FY 2008, MWS processed 1.7 million tonnes of material from its tailings
dams through the MWS gold plant at a cash cost of $533 per ounce, including 1.6
million tonnes reclaimed during Q4 2008 at a cash cost of $455 per ounce. The
relatively high average cash costs at MWS are primarily due to the diminishing
resources taken from the tailings dams acquired with the purchase of MWS, which
necessitated a low-volume, high-cost mechanical load and placement operation. In
December 2007, the Company completed the construction of a pipeline from the
tailings dams at the Buffelsfontein mine (the "Buffelsfontein Tailings") to the
MWS gold plant. With the transition to the high-volume, low-cost operations
associated with the hydraulic mining of the Buffelsfontein Tailings, the average
cash costs started to decrease and are expected to decrease further as the
throughput to the MWS gold plant increases.
The Ezulwini Mine sold 2,680 ounces of gold during Q4 2008 and 7,735 ounces of
gold during FY 2008 at an average selling price of $884 per ounce and $869 per
ounce, respectively. As the Ezulwini Mine is still in a ramp-up phase and has
not yet achieved commercial levels of production, the $2.5 million of revenue in
Q4 2008 and the $6.7 million of revenue in FY 2008 from the sale of itsore has
been credited against mine infrastructure costs at the Ezulwini Mine, in
Property, Plant and Equipment in accordance with Canadian GAAP.
The Company had no revenue in FY 2007 as it was developing and preparing the
mining projects for production.
The Company incurred a loss of $22.3 million in FY 2008 compared to a loss of
$7.9 million in FY 2007. The increase in expenditures year over year reflects
the ramp-up of activities, ongoing project activities, the costs of corporate
offices in Johannesburg and Toronto and other expenses of operating a public
company, which were not applicable for most of FY 2007.
The cash flows utilized in operating activities during FY 2008 was primarily
used to fund the ongoing expenditures incurred by the Company during the year
that more than offset the gross profit from gold sales. The cash flows utilized
in operating activities during FY 2007 was mainly the result of a reduction in
net receivables from related parties and an increase in accounts payable and
accrued liabilities. The $23.8 million cash flows utilized in operating
activities during Q4 2008 was the result of increased ongoing expenditures
during the quarter as well as the foreign exchange translation losses incurred
during the quarter.
At the end of FY 2008, First Uranium had total assets of $387.7 million, total
liabilities of $155.3 million and shareholders` equity of $232.4 million. It had
cash and cash equivalents on hand of $164.7 million, compared to $138.9 million
at the end of FY 2007. The Company currently holds its funds in cash and bank-
sponsored guaranteed investment certificates. It has no exposure to asset-backed
commercial paper. The increase in cash and cash equivalents from the end of FY
2007 was primarily attributable to the net proceeds of $130.6 million received
from the sale of the senior unsecured convertible debentures in May 2007, offset
by $112.7 million of cash utilized for capital expenditure at the Company`s two
mining projects during FY 2008.
Outlook
On January 24, 2008, Eskom communicated to the South African mining industry
that the utility could not guarantee power availability and asked the industry
to operate at electrical power levels below historical load requirements until
2012 (the "Power Situation"). While Eskom has announced plans to increase the
supply of power incrementally in the years leading up to 2012, Eskom also
reported that full power availability cannot be guaranteed until then.
The Company conducted studies to assess the economic viability of First Uranium
generating its own power at the Ezulwini Mine and MWS for the next five years to
supplement the power supply from Eskom.
Based on the positive results of the economic studies, the Company entered into
an agreement to purchase a 30 MW power plant (comprised of twelve 2.5 MW
generating sets) that is expected to arrive in South Africa during July 2008,
with construction, installation and commissioning to be completed during
December 2008. The Company also agreed to lease diesel generating sets (1 MW
each) with a combined capacity of 10 MW that will be delivered to the Ezulwini
Mine over a three-month period with the first four generating sets arriving
during July 2008, with commissioning by the end of that month. At the Ezulwini
Mine, the Company has also made provision to utilize the existing 14 MW of
installed diesel generating capacity should the need arise.
Reduced availability of electrical power in South Africa has also caused
cutbacks in the operation of smelters and other facilities that produce
sulphuric acid as a byproduct exacerbating an acid market that was already
experiencing tight supplies. In late 2007, the Company commenced test work and
a preliminary technical assessment of the economic viability of constructing an
acid plant to provide the required sulphuric acid for its operations. Based on
the positive results of the assessment, the Company announced in April 2008
plans, subject to financing, to purchase and install at the MWS facility an "off
the shelf" acid plant to produce sulphuric acid to reduce future costs and
secure the supply of acid required for its two uranium and gold mining projects.
The projected cost of the acid plant is approximately $124 million. Based on an
analysis of pyrite feed-stock potential from the MWS tailings dams, the
technical assessment and a recent market analysis, the Company expects that it
will take 19 months to procure and commission the acid plant with anticipated
production beginning in January 2010. A specification and procurement study has
been initiated and is expected to be completed in August 2008. To date the
Company has not made any capital commitments with regards to the acid plant.
Until the Company can produce its own acid, it has secured its initial
requirements for sulphuric acid in a market where acid supplies remain very
tight. The Company anticipates that significant acid price increases will
continue in the medium term as acid prices are closely related to the market for
sulphur, which is also indicating tight supply and significant price increases.
Once the acid plant is completed, the Company plans to direct all of the pyrite
currently produced as waste at the MWS tailings plant to the acid plant for the
production of sulphuric acid, which should eliminate the need to source acid
from third-party vendors. Since the planned production of the acid would be more
than sufficient to supply the projected acid requirements of both the Ezulwini
Mine and MWS, excess acid could be sold into the market at the then prevailing
market rates. In addition, as the production of acid in the plant would be an
exothermic reaction, there is the opportunity to generate a by-product of
approximately 4 MW of power, which would be available to augment the power
supply to MWS.
The Ezulwini Mine terminated the third-party gold toll-treatment arrangement at
the end of March 2008 in order to start building a stockpile to be used during
the commissioning of the gold plant. The full commissioning of each of the gold
and uranium plants are the next major milestones for the Ezulwini Mine. The
full commissioning of the first 50,000 tonne per month module of the 200,000
tonne per month gold plant is on schedule for June 2008. Production of gold
bullion is expected in July 2008, three months ahead of the original schedule at
the time of the IPO. The 100,000 tonne per month uranium plant is on schedule
for commissioning in June 2008 and the delivery of its first shipment of
ammonium diuranate ("yellowcake") is expected in August 2008. Current mine
production from the UE section and the ME section is being stockpiled separately
on surface to feed the plants during their commissioning phases.
The Company has a toll-treatment agreement with a third party to calcine the
yellowcake, commencing January 2009, to produce uranium oxide for dispatch to
the converters. The Company also entered into an interim off-take agreement
with the third party, for the period from the planned startup of the uranium
plant at the Ezulwini Mine in June 2008 until January 2009, pursuant to which
the third party would purchase First Uranium`s yellowcake production at rates
based on the then prevailing spot prices.
At MWS, commissioning of the introduction of the new material from the
Buffelsfontein tailings to the MWS gold plant is ongoing, with upgrades to re-
pulping of the tailings, the pumping and the plant processes expected to improve
volume, recoveries and costs in the MWS plant.
An upgrade to accommodate a deposition rate of 1.3 million tonnes of material
per month on the MWS No.5 tailings dam is planned in advance of the
commissioning of the second module of the MWS gold plant and the first two
modules of the uranium plant,
First Uranium anticipates that the estimated $471 million of capital required
(exclusive of the proposed acid plant) over the remaining life of the Ezulwini
Mine and MWS (including sustaining capital) as well as $40 million approved for
the long-term Ezulwini Expansion Program can be funded from existing cash and
cash equivalents of $164.7 million and from internally generated cash flow from
future sales of gold and uranium at current price assumptions, along with funds
that may be available under a proposed mandate letter and term sheet with a
financial institution for a credit facility. Discussions in respect of the
credit facility and potential lines of credit are ongoing. The Company plans to
fund the proposed acid plant through a separate project and/or end-user
financing arrangement.
Cautionary Language Regarding Forward-Looking Information
This news release contains certain forward-looking statements. Forward-looking
statements include but are not limited to those with respect to the availability
of electrical power, the addition of owner-operated power generation, prices for
uranium and gold, prices for power, availability and prices for sulphuric acid,
the estimation of mineral resources and reserves, the realization of estimated
pyrite content in the MWS tailings, the realization of mineral reserve
estimates, the timing and amount of estimated future production, costs of
production, capital expenditures, costs and timing of development of new
deposits, success of exploration activities, permitting time lines, currency
fluctuations, requirements for additional capital, availability of financing on
acceptable terms, 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 "goals", "targets", "plans", "expects", "is expected",
"deadlines", "anticipates", or "believes" or variations of such words and
phrases, or state that certain actions, events or results "could", "would",
"should" 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 First Uranium to be
materially different from any future results, performance or achievement
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.
Although First Uranium 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. It
is important to note, that: (i) unless otherwise indicated, forward-looking
statements indicate the Company`s expectations as at the date of this news
release; (ii) actual results may differ materially from the Company`s
expectations if known and unknown risks or uncertainties affect its business, or
if estimates or assumptions prove inaccurate; (iii) the Company cannot guarantee
that any forward-looking statement will materialize and, accordingly, readers
are cautioned not to place undue reliance on these forward-looking statements;
and (iv) the Company disclaims any intention and assumes no obligation to update
or revise any forward-looking statement even if new information becomes
available, as a result of future events or for any other reason.
In making the forward-looking statements in this news release, First Uranium has
made several material assumptions, including but not limited to, the assumption
that: (i) consistent supply of sufficient power will be available to develop and
operate the projects as planned; (ii) approvals to transfer or grant, as the
case may be, mining rights will be obtained; (iii) metal prices, exchange rates
and discount rates applied in the preliminary economic assessments are achieved;
(iv) mineral resource estimates are accurate; (v) the technology used to develop
and operate its two projects has, for the most part, been proven and will work
effectively; (vi) that labour and materials will be sufficiently plentiful as to
not impede the projects or add significantly to the estimated cash costs of
operations; (vii) that Black Economic Empowerment ("BEE") investors will
maintain their interest in the Company and their investment in the Company`s
common shares to a sufficient level to continue to support the Company`s
compliance with 2014 BEE requirements; and (viii) that the innovative work on
stabilizing the main shaft at the Ezulwini Mine will be successful in
maintaining a safe and uninterrupted working environment until 2024.
Review by Board of Directors
The First Uranium Board of Directors, on the recommendation of its Audit
Committee, has approved the contents of this disclosure.
Conference CallFirst Uranium will conduct a conference call with investors to
discuss the information in this news release at 10:00 a.m. local Toronto time
and 4:00 p.m. local Johannesburg time on Wednesday, June 11, 2008. The
conference call will be available simultaneously to all interested investors and
news media.
Callers may dial 1 800 319-4610 (Canada and the US) or 0800 200 648 (South
Africa). Callers from other international locations may call +1 604 638-5340
(Canada) or +27 11 535 3600 (South Africa). The call will be webcast at
http://services.choruscall.com/links/firsturanium080611.html and an archive will
be available through the same link shortly after the live event for 90 days.
A replay of the conference call will be available for 30 days. To access the
replay, callers may dial 1 800 319-6413 (Canada and the US). Callers from other
international locations may access the replay by dialing +1 604 638-9010
(Canada). Access to the replay will require the code 2128, followed by #.
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on the development of
its South African uranium and gold mines with the goal of becoming a significant
low-cost producer through the re-opening and underground development of the
Ezulwini Mine and the expansion of the Mine Waste Solutions tailings recovery
facility. First Uranium also plans to grow production by pursuing value-
enhancing acquisition and joint venture opportunities in South Africa and
elsewhere.
First Uranium Corporation
1240-155 University Avenue, Toronto, ON Canada M5H 3B7
www.firsturanium.com
For further information, please contact:
Bob Tait, VP Investor Relations
at 416 342-5639 (office), 416 558-3858 (mobile) or bob@firsturanium.ca
First Uranium Corporation
Consolidated Balance Sheets
As at March 31, 2008 and 2007
2008 2007
(Unaudited) US$`000 US$`000
ASSETS
Current assets
Cash and cash equivalents 164,739 138,914
Accounts receivable 9,720 1,713
Inventories 2,808 292
Receivables from related party - 6,763
177,267 147,682
Non-current assets
Property, plant and equipment 204,650 30,954
Asset retirement funds 4,847 2,791
Loan to related party 978 -
210,475 33,745
Total assets 387,742 181,427
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 24,303 5,702
Payables to related party 541 -
24,844 5,702
Non-current liabilities
Senior unsecured convertible debentures 99,880 -
Future tax liability 10,649 -
Asset retirement obligations 19,901 5,377
130,430 5,377
SHAREHOLDERS` EQUITY
Share capital 215,935 182,673
Equity portion of senior unsecured convertible 46,504 -
debentures
Contributed surplus 7,008 2,460
Contribution from parent 153 -
Accumulated deficit (37,132) (14,785)
232,468 170,348
Total liabilities and shareholders` equity 387,742 181,427
First Uranium Corporation
Consolidated Statements of Operations and Deficit and Comprehensive Loss
For the years ended March 31, 2008 and 2007
2008 2007
(Unaudited) US$`000 US$`000
Revenue 21,429 -
Cost of sales (16,580) -
Gross Profit 4,849 -
Other income 2,738 27
Expenditures
General, consulting and (15,573) (3,262)
administrative expenditures
Stock-based compensation (5,125) (2,460)
Pumping, feasibility and (5,343) (871)
rehabilitation costs
(26,041) (6,593)
Operating loss before the (18,454) (6,566)
undernoted
Interest income 14,847 3,433
Interest expense (5,782) (162)
Accretion expense on convertible (8,485) -
debentures
Accretion expense on asset (896) -
retirement obligations
Foreign exchange losses (2,611) (4,612)
Loss before income taxes (21,381) (7,907)
Income tax charge (966) (21)
Loss for the year (22,347) (7,928)
Accumulated deficit at the (14,785) (6,857)
beginning of the year
Accumulated deficit at the end of (37,132) (14,785)
the year
Basic and diluted loss per common (0.18) (0.08)
share (US$)
Weighted average number of basic and diluted
common shares outstanding (`000) 126,096 97,522
Loss for the year (22,347) (7,928)
Comprehensive loss (22,347) (7,928)
First Uranium Corporation
Consolidated Statements of Cash Flows
For the years ended March 31, 2008 and 2007
2008 2007
(Unaudited) US$`000 US$`000
Loss for the year (22,347) (7,928)
Changes not affecting cash:
- Interest income (194) (666)
- Interest expense 1,579 162
- Accretion expense on 8,485 -
convertible debentures
- Accretion expense on asset 896 244
retirement obligations
- Amortization on property, 1,781 14
plant and equipment
- Stock-based compensation 5,125 2,460
Loss after interest and non- (4,675) (5,714)
cash items
Expenses in respect of asset - 80
retirement fund
Expenses in respect of asset (1,841) -
retirement obligations
Movement in working capital:
- Increase in inventories (1,107) (292)
- Increase in accounts receivable (7,740) (1,570)
- Decrease (increase) in net receivables 7,304 (9,880)
from/payables to related parties
- Increase in accounts payable 6,336 1,633
and accrued liabilities
Cash flows utilized in (1,723) (15,743)
operating activities
Additions to property, plant (112,751) (24,270)
and equipment
Increase in asset retirement (109) (103)
fund
Net cash movement on 1,248 -
acquisition of MWS
Cash outflow from investing (111,612) (24,373)
activities
Issuance of senior unsecured convertible 130,561 -
debentures net of issue costs
Bridging loan to facilitate 42,377 -
Waterpan transaction
Repayment of bridging loan pursuant to Waterpan (42,377) -
transaction
Proceeds from exercise of share 1,063 -
options
Proceeds from issuance of common shares net of - 178,470
issue costs
Cash inflow from financing 131,624 178,470
activities
Net effect of exchange rate changes on cash held 7,536 -
in foreign currencies
Net increase in cash and cash equivalents for the 25,825 138,354
year
Cash and cash equivalents, 138,914 560
beginning of the year
Cash and cash equivalents, end 164,739 138,914
of the year
Date: 11/06/2008 07:27:01 Produced by the JSE SENS Department.
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