|
UUU
UUU
UUU - Uranium One Inc - Interim Consolidated Balance Sheets - Unaudited As at
September 30, 2008 and December 31, 2007
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 Balance Sheets - Unaudited
As at September 30, 2008 and December 31, 2007
(in United States dollars)
Sep 30, 2008 Dec 31, 2007
Notes $`000 $`000
ASSETS
Current assets
Cash and cash equivalents 98,931 159,592
Accounts and other receivables 4 62,371 70,318
Current portion of loans to 5.2 19,390 32,867
joint ventures
Inventories 6 23,422 20,952
Other assets 986 18,056
Discontinued operations 3 - 94,986
205,100 396,771
Non-current assets
Mineral interests, plant and 7 1,679,590 4,827,353
equipment
Loans to joint ventures 5.2 18,666 24,359
Available for sale securities 8 1,420 21,257
Other assets 9 58,659 56,543
Assets held for sale 10 2,703 -
Discontinued operations 3 29,773 286,614
1,790,811 5,216,126
Total assets 1,995,911 5,612,897
LIABILITIES
Current liabilities
Accounts payable and accrued 11 52,305 70,802
liabilities
Income taxes payable 10,167 4,237
Discontinued operations 3 - 5,245
62,472 80,284
Non-current liabilities
Convertible debentures 135,560 136,548
Asset retirement obligations 9,762 13,926
Future income tax liabilities 544,308 1,496,060
Long term debt 5.1 29,873 18,205
Other long term payables 12 12,740 1,824
Liabilities relating to assets 10 135 -
held for sale
Discontinued operations 3 - 183,145
732,378 1,849,708
SHAREHOLDERS` EQUITY
Share capital 13 3,521,430 3,496,884
Contributed surplus 14 131,133 134,387
Equity component of convertible 46,480 46,480
debentures
Accumulated other comprehensive (254,128) 51,967
(loss) / income
Deficit (2,243,854) (46,813)
1,201,061 3,682,905
Total shareholders` equity and 1,995,911 5,612,897
liabilities
Basis of presentation and principles of consolidation (note 2.1)
Subsequent events (note 22)
The accompanying notes form an integral part of these Interim Consolidated
Financial Statements
Three months ended
Sep 30, Sep 30,
2008 2007
Notes $`000 $`000
Revenues 56,723 8,019
Operating expenses (11,793) (660)
Depreciation and depletion (8,305) (1,058)
Earnings from mine operations 36,625 6,301
General and administrative (1) (10,592) (28,370)
Exploration expense (5,388) (4,813)
Operating earnings / (loss) 20,645 (26,882)
Interest and other 15 (2,483) (96)
Impairment of mineral interests, 7.1 (2,816,87 -
plant and equipment 8)
Impairment of assets held for 10 (14,100) -
sale
Gain on sale of available for 8 - -
sale securities
Foreign exchange (loss) / gain 16 (2,809) 10,727
Other (835) 564
Loss from continuing operations before (2,816,46 (15,687)
income taxes 0)
Current income tax expense (16,023) (1,961)
Future income tax recovery 818,799 668
Loss from continuing operations (2,013,68 (16,980)
4)
Loss from discontinued 3 (567) (277)
operations
Net loss (2,014,25 (17,257)
1)
(1) Stock option and restricted 14 2,963 15,389
share expense (non-cash)
included in general and
administrative
Loss per share from continuing
operations
Basic and diluted (4.30) (0.04)
Loss per share from discontinued
operations
Basic and diluted (0.00) (0.00)
Net loss per share
Basic and diluted (4.30) (0.04)
Weighted average number of
shares (in thousands)
Basic and diluted 18 468,518 422,308
Nine months ended
Sep 30, Sep 30,
2008 2007
Notes $`000 $`000
Revenues 128,630 73,014
Operating expenses (24,572) (9,761)
Depreciation and depletion (18,196) (7,933)
Earnings from mine operations 85,862 55,320
General and administrative (1) (39,821) (51,101)
Exploration expense (12,103) (10,636)
Operating earnings / (loss) 33,938 (6,417)
Interest and other 15 (4,305) 2,259
Impairment of mineral interests, 7.1 (2,816,87 -
plant and equipment 8)
Impairment of assets held for 10 (119,189) -
sale
Gain on sale of available for 8 7,467 -
sale securities
Foreign exchange (loss) / gain 16 (2,995) (2,684)
Other 809 1,947
Loss from continuing operations before (2,901,15 (4,895)
income taxes 3)
Current income tax expense (39,934) (22,336)
Future income tax recovery 848,895 5,114
Loss from continuing operations (2,092,19 (22,117)
2)
Loss from discontinued 3 (104,849) (863)
operations
Net loss (2,197,04 (22,980)
1)
(1) Stock option and restricted 14 13,560 28,413
share expense (non-cash)
included in general and
administrative
Loss per share from continuing
operations
Basic and diluted (4.47) (0.07)
Loss per share from discontinued
operations
Basic and diluted (0.22) (0.00)
Net loss per share
Basic and diluted (4.69) (0.07)
Weighted average number of
shares (in thousands)
Basic and diluted 18 468,047 324,894
The accompanying notes form an integral part of these Interim Consolidated
Financial Statements
Share Contribut Equity
capital ed component
$`000 surplus of
$`000 convertib
le
debenture
$`000
Balance as at January 1, 2007 613,607 31,286 -
Net loss for the year - - -
Stock options and restricted - 37,660 -
shares vested
Exercise of warrants 2,115 (1,035) -
Exercise of stock options and 54,912 (30,873) -
restricted shares
Uranium One Inc / UrAsia 1,709,647 62,042 46,480
Energy Ltd business
combination
U.S. Energy Corp asset 99,401 - -
purchase consideration
Energy Metals Corporation 1,013,215 35,307 -
asset purchase consideration
Unrealized gains recognized - - -
on translation of self-
sustaining foreign operations
Unrealized gains recognized - - -
on translation of self-
sustaining foreign
discontinued operations
Shares issued for services 3,987 - -
rendered
Fair value adjustments on - - -
available for sale
securities, net of tax (note
8)
Balance as at December 31, 3,496,884 134,387 46,480
2007
Net loss for the period - - -
Stock options and restricted - 13,560 -
shares vested
Exercise of warrants 15,791 (11,460) -
Exercise of stock options and 8,755 (5,354) -
restricted shares
Unrealized loss recognized on - - -
translation of self-
sustaining foreign operations
Unrealized loss recognized on - - -
translation of self-
sustaining foreign
discontinued operations
Realized loss on sale of - - -
Aflease Gold
Fair value adjustments on - - -
available for sale securities
(note 8)
Realized loss on sale of - - -
available for sale
securities, net of tax
Balance as at September 30, 3,521,430 131,133 46,480
2008
Accumulat Deficit Total
ed other $`000 $`000
comprehen
d- sive
income /
(loss)
$`000
Balance as at January 1, - (29,204) 615,689
2007
Net loss for the year - (17,609) (17,609)
Stock options and - - 37,660
restricted shares vested
Exercise of warrants - - 1,080
Exercise of stock options - - 24,039
and restricted shares
Uranium One Inc / UrAsia - - 1,818,169
Energy Ltd business
combination
U.S. Energy Corp asset - - 99,401
purchase consideration
Energy Metals Corporation - - 1,048,522
asset purchase
consideration
Unrealized gains recognized 47,536 - 47,536
on translation of self-
sustaining foreign
operations
Unrealized gains recognized 4,243 - 4,243
on translation of self-
sustaining foreign
discontinued operations
Shares issued for services - - 3,987
rendered
Fair value adjustments on 188 - 188
available for sale
securities, net of tax
(note 8)
Balance as at December 31, 51,967 (46,813) 3,682,905
2007
Net loss for the period - (2,197,041) (2,197,041)
Stock options and - - 13,560
restricted shares vested
Exercise of warrants - - 4,331
Exercise of stock options - - 3,401
and restricted shares
Unrealized loss recognized (285,645) - (285,645)
on translation of self-
sustaining foreign
operations
Unrealized loss recognized (27,969) - (27,969)
on translation of self-
sustaining foreign
discontinued operations
Realized loss on sale of 9,920 - 9,920
Aflease Gold
Fair value adjustments on (2,225) - (2,225)
available for sale
securities (note 8)
Realized loss on sale of (176) - (176)
available for sale
securities, net of tax
Balance as at September 30, (254,128) (2,243,854) 1,201,061
2008
The accompanying notes form an integral part of these Interim Consolidated
Financial Statements
Three months ended
Sep 30, 2008 Sep 30,
2007
Notes $`000 $`000
Net loss (2,014,251) (17,257)
Unrealized (loss) / gain (121,005) 40,022
recognized on translation of
self-sustaining foreign
operations
Unrealized (loss) / gain (1,899) 4,194
recognized on translation of
self-sustaining foreign
discontinued operations
Realized loss on sale of Aflease - -
Gold
Fair value adjustments on 8 (1,272) (371)
available for sale securities
Realized loss on sale of - -
available for sale securities,
net of tax
Comprehensive (loss) / income (2,138,427) 26,588
Nine months ended
Sep 30, 2008 Sep 30,
2007
Notes $`000 $`000
Net loss (2,197,041) (22,980)
Unrealized (loss) / gain (285,645) 31,972
recognized on translation of
self-sustaining foreign
operations
Unrealized (loss) / gain (27,969) 3,666
recognized on translation of
self-sustaining foreign
discontinued operations
Realized loss on sale of Aflease 9,920 -
Gold
Fair value adjustments on 8 (2,225) (371)
available for sale securities
Realized loss on sale of (176) -
available for sale securities,
net of tax
Comprehensive (loss) / income (2,503,136) 12,287
Interim Consolidated Statements of Accumulated Other Comprehensive (Loss) /
Income - Unaudited
As at September 30, 2008 and December 31, 2007
(in United States dollars)
Sep 30, Dec 31, 2007
2008
$`000 $`000
Accumulated other comprehensive income at 51,967 -
January 1
Other comprehensive (loss) / income for (306,095) 51,967
the period
(254,128) 51,967
Components of other comprehensive loss at
the end of the period:
Unrealized foreign exchange adjustment - (238,109) 47,562
continuing operations (1)
Unrealized foreign exchange adjustment - (13,806) 4,243
discontinued operations
Available for sale marketable securities (2,213) 162
and investments
(254,128) 51,967
(1) Includes foreign exchange losses of $238.5 million relating to the
translation of the investment in Uranium One Africa Limited (note 7.1)
The accompanying notes form an integral part of these Interim Consolidated
Financial Statements
Three months ended
Sep 30, Sep 30, 2007
2008
Notes $`000 $`000
Net loss from continuing (2,013,684) (16,980)
operations
Items not affecting cash:
- Depreciation and depletion 8,305 1,058
- Impairment of mineral 7.1 2,816,878 -
interest plant and equipment
- Impairment of assets held 10 14,100 -
for sale
- Stock option and restricted 14 2,963 15,389
share expense
- Interest accrued on loans 4,438 3,707
and debentures
- Unrealized foreign exchange 16 1,737 (1,274)
(gain) / loss
- Future income tax recovery (818,799) (668)
- Gain on sale of available - -
for sale securities
- Other 1,540 (377)
Movement in non-cash working 17 8,993 1,896
capital
Cash flows from operating 26,471 2,751
activities
Acquisition of Uranium One - -
Inc., net of acquisition
costs
Acquisition of Energy Metals - 82,410
Corporation, net of
acquisition costs
Acquisition of mineral (63,833) (80,800)
interests, plant and
equipment
Advance cash payments for - (1,331)
other assets
Joint Venture earn in - 800
payments received
Proceeds on sale of available 8 - -
for sale securities
Cash advances to joint - -
ventures
Cash proceeds from joint 4,667 -
ventures
Restricted cash - -
Other (810) -
Cash flows (used in) / from (59,976) 1,079
investing activities
Cash flows from investing 3 - -
activities of discontinued
operations
Common shares issued, net of 3,486 4,466
issue costs
Financing fees 9 - -
Loans received by Kyzylkum - 12,000
Short term loan repaid - (53,131)
Subscriptions for special - 6,072
warrants received by
subsidiary
Coupon interest payment on - -
convertible debentures
Other - -
Cash flows from / (used in) 3,486 (30,593)
financing activities
Effects of exchange rate (4,198) 16,532
changes on cash and cash
equivalents
Net (decrease) / increase in (34,217) (10,231)
cash and cash equivalents
from continuing operations
Cash and cash equivalents at the 133,148 288,013
beginning of the period
Cash and cash equivalents at 98,931 277,782
the end of the period
Nine months ended
Sep 30, Sep 30, 2007
2008
Notes $`000 $`000
Net loss from continuing (2,092,192) (22,117)
operations
Items not affecting cash:
- Depreciation and depletion 18,196 7,933
- Impairment of mineral 7.1 2,816,878 -
interest plant and equipment
- Impairment of assets held 10 119,189 -
for sale
- Stock option and restricted 14 13,560 28,413
share expense
- Interest accrued on loans 12,055 5,226
and debentures
- Unrealized foreign exchange 16 (1,907) 10,688
(gain) / loss
- Future income tax recovery (848,895) (5,114)
- Gain on sale of available (7,467) -
for sale securities
- Other 1,735 1,441
Movement in non-cash working 17 4,415 7,219
capital
Cash flows from operating 35,567 33,689
activities
Acquisition of Uranium One - 271,935
Inc., net of acquisition
costs
Acquisition of Energy Metals - 82,410
Corporation, net of
acquisition costs
Acquisition of mineral (186,270) (163,960)
interests, plant and
equipment
Advance cash payments for - (5,644)
other assets
Joint Venture earn in - 800
payments received
Proceeds on sale of available 8 24,927 -
for sale securities
Cash advances to joint (3,900) (22,400)
ventures
Cash proceeds from joint 23,001 18,780
ventures
Restricted cash - (500)
Other (1,763) -
Cash flows (used in) / from (144,005) 181,421
investing activities
Cash flows from investing 3 43,456 -
activities of discontinued
operations
Common shares issued, net of 8,274 22,197
issue costs
Financing fees 9 (5,666) -
Loans received by Kyzylkum 12,000 12,000
Short term loan repaid - (53,131)
Subscriptions for special - 6,072
warrants received by
subsidiary
Coupon interest payment on (3,267) -
convertible debentures
Other - (175)
Cash flows from / (used in) 11,341 (13,037)
financing activities
Effects of exchange rate (7,020) 26,748
changes on cash and cash
equivalents
Net (decrease) / increase in (60,661) 228,821
cash and cash equivalents
from continuing operations
Cash and cash equivalents at the 159,592 48,961
beginning of the period
Cash and cash equivalents 98,931 277,782
at the end of the period
Cash flows of discontinued operations
Cash flows used in - (1,835) (685) (3,284)
operating activities
Cash flows (used in) / - (1,970) 44,141 (3,534)
from investing activities
Cash flows from / (used - 206 - 272
in) financing activities
Supplemental cash flow information (note 17)
The accompanying notes form an integral part of these Interim Consolidated
Financial Statements
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 36% 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 through the Betpak Dala Joint Venture 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. In the United States, the Corporation owns projects in the Powder
River and Great Divide Basins in Wyoming. The Corporation has suspended
operations at its Dominion Project in South Africa and placed it on care and
maintenance while evaluating strategic alternatives for the project. The
Corporation entered into joint venture agreements subsequent to September 30,
2008 in relation to the Honeymoon Uranium Project in Australia and
exploration, which is scheduled to close before the end of 2008. The
Corporation owns, either directly or through joint ventures, a large
portfolio of uranium exploration properties in South Africa, the western
United States and South Australia.
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 as at
September 30, 2008:
Operating mine:
Entity Mineral Location Ownership Status
property/Operation
Betpak Akdala Uranium Kazakhstan 70% Proportionately
Dala LLP Mine consolidated
Advanced development projects:
Entity Mineral Location Ownership Status
property/Operation
Betpak South Inkai Kazakhstan 70% Proportionately
Dala LLP Uranium Project consolidated
Kyzylkum Kharasan Uranium Kazakhstan 30% Proportionately
LLP Project consolidated
The Corporation is also developing the following mineral properties:
Entity Mineral Location Ownership Status
property/Operation
Energy Metals United States United 100% Consolidated
Corp (US) development States
projects
Uranium One Honeymoon Uranium Australia 100% Consolidated
Australia Project
(Proprietary)
Limited
The Corporation suspended development of the following mineral properties:
Entity Mineral Location Ownership Status
property/Operation
Uranium One Dominion Uranium South 100% Consolidated
Africa Ltd Project Africa
South Texas Hobson Facility United 99% Consolidated
Mining Venture and La Palangana States
Project
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 the Corporation`s financial position or operating results.
International Financial Reporting Standards (IFRS)
In February 2008, the Canadian Accounting Standards Board confirmed that
publicly accountable enterprises will be required to adopt IFRS for fiscal
years beginning on or after January 1, 2011, with earlier adoption permitted.
Accordingly, the conversion to IFRS will be applicable to the Corporation`s
reporting no later than in the first quarter of 2011, with restatement of
comparative information presented. The conversion to IFRS will impact the
Corporation`s accounting policies, information technology and data systems,
internal control over financial reporting, and disclosure controls and
procedures. The transition may also impact business activities, such as
foreign currency, certain contractual arrangements, debt covenants and
capital requirements. The Corporation is currently evaluating the future
impact of IFRS on its financial statements and will continue to invest in
training and additional resources to ensure a timely conversion.
3 DISCONTINUED OPERATIONS - AFLEASE GOLD
On March 27, 2008, the Corporation entered into an agreement to sell its
shareholding in Aflease Gold. On April 8, 2008 the Corporation sold 152.2
million Aflease Gold shares for $41.3 million (ZAR320 million), 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. In the first quarter of
2008, the Corporation`s investment in Aflease Gold was written down to its
fair value, based on a combination of the contracted sales price and the
market price on the Johannesburg Stock Exchange ("JSE"). The impairment, net
of future income tax recovery, amounted to $103.5 million.
During June 2008, the Corporation sold an additional 9.1 million Aflease Gold
shares for $2.8 million (ZAR21.9 million), decreasing the Corporation`s
shareholding to 36%. The Corporation realized a gain of $0.7 million on the
sale of these shares. The tax on these transactions was offset against the
assessed tax losses of Uranium One Africa Limited, a wholly owned subsidiary
of the Corporation.
The assets and liabilities of Aflease Gold have been classified as
discontinued operations for all periods presented in these financial
statements. As a result of the Corporation`s partial disposal of its
interest in Aflease Gold, the consolidation of Aflease Gold is no longer
appropriate. The Corporation has equity accounted for its investment in
Aflease Gold for the three months ended September 30, 2008 and its share of
Aflease Gold`s earnings is recorded in the discontinued operations line in
the consolidated statement of operations for the three months ended September
30, 2008. The Corporation`s net equity investment in Aflease Gold is
recorded as discontinued operations (non-current assets) in the consolidated
balance sheet as at September 30, 2008. The Board of Directors has approved
the sale of the remaining portion of Uranium One Africa`s shareholding in
Aflease Gold.
The investment in Aflease Gold was reported as the Modder East Gold Project
for segment reporting purposes in previous periods.
The financial statement effects on the net investment in Aflease Gold and the
statement of operations are illustrated below:
Balance Statement
sheet of
operations
$`000 $`000
December 31, 2007 191,114 -
Loss from discontinued operations (1,004) (1,004)
Impairment (103,552) (103,552)
Effect of foreign exchange and (29,411) -
other
March 31, 2008 57,147 (104,556)
Net carrying value sold during the (27,837) -
period
Loss on sale of investment, net of - 685
tax
Share of net loss for the period (411) (411)
(1)
Effect of foreign exchange 3,339 -
June 30, 2008 32,238 (104,282)
Share of net loss for the period (567) (567)
(1)
Effect of foreign exchange (1,898) -
September 30, 2008 29,773 (104,849)
(1) The Corporation estimated its share of net loss for Aflease Gold for the
three months ended September 30, 2008.
3 DISCONTINUED OPERATIONS - AFLEASE GOLD (continued)
Selected financial information of the discontinued operations included in the
comparative periods of the Consolidated Statement of Operations are as
follows:
Three months Nine months ended
ended
Sep 30, 2007 Sep 30, 2007
$`000 $`000
Net loss from
discontinued
operations
Revenues - -
Loss from (1,388) (2,588)
discontinued
operations
Interest and other 1,065 954
expenses
Non-controlling 46 771
interest
(277) (863)
The major classes of assets and liabilities of the discontinued operations
are as follows:
Sep 30, Dec 31,
2008 2007
$`000 $`000
Assets
Cash and cash equivalents - 92,623
Accounts receivable and other - 2,321
receivables
Inventories - 42
Current assets of discontinued - 94,986
operations
Mineral interests, plant and equipment - 285,553
Investment 29,773 -
Other assets - 1,061
Non-current assets of discontinued 29,773 286,614
operations
Total assets of discontinued 29,773 381,600
operations
Liabilities
Accounts payable, accrued liabilities - 5,080
and other
Income taxes payable - 165
Current liabilities of discontinued - 5,245
operations
Future income tax liabilities - 80,201
Convertible debentures - 90,551
Other long term liabilities - 1,085
Non-controlling interest - 11,308
Non-current liabilities of - 183,145
discontinued operations
Total liabilities of discontinued - 188,390
operations
4 ACCOUNTS AND OTHER RECEIVABLES
Sep 30, Dec 31,
2008 2007
$`000 $`000
Trade receivables 45,161 55,520
Value added tax and general sales 9,798 7,446
tax
Prepayments and advances 5,639 5,558
Deposits and guarantees 2,824 3,220
Other receivables 1,773 1,794
65,195 73,538
Less: non-current deposits and 2,824 3,220
guarantees included in other assets
(note 9)
62,371 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%
The Corporation`s proportionate share of the assets and liabilities of the
joint ventures are as follows:
As at September 30, 2008
Betpak Kyzylkum Total
Dala
$`000 $`000 $`000
Cas 23,771 1,457 25,228
h
Other current assets 41,309 730 42,039
Mineral interests, 686,979 195,575 882,554
plant and equipment
Other assets 2,044 2,874 4,918
Current liabilities (18,575) (6,119) (24,694)
Long term debt (1) (88) (29,785) (29,873)
Oth (1,543) (306) (1,849)
er
Future income taxes (273,372) (72,783) (346,155)
Asset retirement (1,392) (78) (1,470)
obligation
Net Assets 459,133 91,565 550,698
(1) In addition to the $54 million loan (note 5.2) from the Corporation,
Kyzylkum negotiated unsecured bank loan facilities in Q2 2007 totaling $100
million. One facility, in the amount of $70 million, was obtained from the
Japan Bank for International Cooperation ("JBIC") and the other facility, in
the amount of $30 million, was obtained from Citibank. Total draw downs
against these facilities amounted to $100 million as at September 30, 2008.
5 JOINT VENTURES (continued)
5.1 Proportionate interests in joint ventures (continued)
As at December 31, 2007
Betpak Kyzylkum Total
Dala
$`000 $`000 $`000
Cash 1,643 3,659 5,302
Other current assets 73,039 291 73,330
Mineral interests, 680,046 182,740 862,786
plant and equipment
Other assets 4,070 4,771 8,841
Current liabilities (19,395) (900) (20,295)
Long term debt - (18,205) (18,205)
Other long term (1,567) (135) (1,702)
liabilities
Future income taxes (280,075 (72,486) (352,561
) )
Asset retirement (3,377) - (3,377)
obligation
Net 454,384 99,735 554,119
Assets
The Corporation`s proportionate share of revenue, expenses, net earnings /
(loss) and cash flows for the three and nine month periods ended September
30, 2008 and 2007 are as follows:
Three months ended September 30, 2008
Betpak Kyzylkum Total
Dala
$`000 $`000 $`000
Revenue 56,723 - 56,723
Expenses and other (18,856) 325 (18,531)
income
Foreign exchange (1,934) 3,960 2,026
(loss) / gain
Earnings before income 35,933 4,285 40,218
taxes
Current income (16,023) - (16,023)
tax expense
Future income 3,143 - 3,143
tax recovery
Earnings 23,053 4,285 27,338
Cash flows from / (used 27,129 (554) 26,575
in) operating activities
Cash flows used in (13,380) (3,377) (16,757)
investing activities
Cash flows from / (used 99 (2,325) (2,226)
in) financing activities
Net increase / 13,848 (6,256) 7,592
(decrease) in cash
5 JOINT VENTURES (continued)
5.1 Proportionate interests in joint ventures (continued)
Nine months ended September 30, 2008
Betpak Kyzylkum Total
Dala
$`000 $`000 $`000
Revenue 128,630 - 128,630
Expenses and other income (40,682) 336 (40,346)
Foreign exchange (loss) / (2,055) 3,949 1,894
gain
Earnings before income 85,893 4,285 90,178
taxes
Current income (37,595) (44) (37,639)
tax expense
Future income 6,792 - 6,792
tax recovery
Earnings 55,090 4,241 59,331
Cash flows from / (used 74,022 (619) 73,403
in) operating activities
Cash flows used in (40,169) (7,683) (47,852)
investing
activities
Cash flows (used in) / (11,726) 5,827 (5,899)
from financing activities
Net increase / (decrease) 22,127 (2,475) 19,652
in cash
Three months ended September 30, 2007
Betpak Kyzylkum Total
Dala
$`000 $`000 $`000
Revenue 8,019 - 8,019
Expenses and other income (2,053) 2 (2,051)
Foreign 119 886 1,005
exchange gain
Earnings before income 6,085 888 6,973
taxes
Current income tax expense (1,960) - (1,960)
Future income tax recovery 335 - 335
Earnings 4,460 888 5,348
Cash flows from / (used 18,110 (274) 17,836
in) operating activities
Cash flows used in (13,499) (8,425) (21,924)
investing
activities
Cash flows from financing 112 11,597 11,709
activities
Net 4,723 2,898 7,621
increase in
cash
5 JOINT VENTURES (continued)
5.1 Proportionate interests in joint ventures (continued)
Nine months ended September 30, 2007
Betpak Kyzylkum Total
Dala
$`000 $`000 $`000
Revenue 73,014 - 73,014
Expenses and other (18,505) (685) (19,190)
income
Foreign exchange loss (5,918) (456) (6,374)
Earnings / (loss) before 48,591 (1,141) 47,450
income taxes
Current income tax (25,057) - (25,057)
expense
Future income tax 5,114 - 5,114
recovery
Earnings / (loss) 28,648 (1,141) 27,507
Cash flows from / (used 88,806 (627) 88,179
in) operating activities
Cash flows used in (39,024) (16,990) (56,014)
investing activities
Cash flows (used in) / (45,621) 20,774 (24,847)
from financing
activities
Net increase in cash 4,161 3,157 7,318
5.2 Loans to Joint Ventures
Sep 30, Dec 31,
2008 2007
$`000 $`000
Current portion
Betpak Dala - 5,175
Kyzylkum 19,390 27,692
19,390 32,867
Long term portion
Betpak Dala - -
Kyzylkum 18,666 24,359
18,666 24,359
Total 38,056 57,226
During the three 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.
5 JOINT VENTURES (continued)
5.2 Loans to Joint Ventures (continued)
Kyzylkum Loan
The Corporation made loans to Kyzylkum pursuant to its obligation to provide
project financing for construction and commissioning of the Kharasan Project
in the amount of $80 million. 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.
Sep 30, Dec 31,
2008 2007
$`000 $`000
Balance at January 1 73,333 80,000
Repaid during the period (20,000) (6,667)
53,333 73,333
Interest accrued 1,033 1,025
54,366 74,358
Less: elimination of (16,310) (22,307)
proportionate share - 30%
38,056 52,051
Less: current portion (19,390) (27,692)
Long term portion 18,666 24,359
The loans to Kyzylkum are unsecured.
6 INVENTORIES
Sep 30, Dec 31,
2008 2007
$`000 $`000
Finished uranium concentrates 2,964 10,093
Solutions and concentrates in 2,367 5,731
process
Product inventory 5,331 15,824
Materials and supplies 11,491 5,128
Stockpiles 6,600 7,772
23,422 28,724
Less: non-current inventory included - 7,772
in other assets (note 9)
23,422 20,952
The Corporation has decided to toll treat the stockpiles through 3rd party
facilities and the stockpiles have been reclassified as current inventory.
7 MINERAL INTERESTS, PLANT AND EQUIPMENT
September 30, 2008 Accumulated Net
carrying
Cost amortization amount
$`000 $`000 $`000
Mineral interests 1,419,002 (44,498) 1,374,504
Plant and equipment 312,436 (7,350) 305,086
1,731,438 (51,848) 1,679,590
December 31, 2007 Accumulated Net
carrying
Cost amortization amount
$`000 $`000 $`000
Mineral interests 4,299,828 (32,771) 4,267,057
Plant and equipment 566,612 (6,316) 560,296
4,866,440 (39,087) 4,827,353
7 MINERAL INTERESTS, PLANT AND EQUIPMENT (continued)
A summary by property of the net book value is as follows:
September 30, Mineral interests
2008
Non-
depletabl
e
Depletable Total
Country $`000 $`000 $`000
Akdala Kazakhstan 103,921 74,358 178,279
Uranium Mine
South Inkai Kazakhstan - 396,888 396,888
Uranium
Project
Kharasan Kazakhstan - 144,796 144,796
Uranium
Project
Dominion South - - -
Uranium Africa
Project (1)
United States United - 294,767 294,767
development States
projects
United States United - 255,378 255,378
exploration States
projects(1)
Hobson United - - -
Facility and States
La Palangana
project (1)
United States United - 50,361 50,361
conventional States
mining
projects(1)
(2)
Honeymoon Australia - 54,035 54,035
Uranium
Project(1)
Corporate and - - -
other (1)
Total 103,921 1,270,583 1,374,504
September 30, 2008
Plant and Total
equipment
Country $`000 $`000
Akdala Uranium Mine Kazakhstan 17,539 195,818
South Inkai Uranium Kazakhstan 93,992 490,880
Project
Kharasan Uranium Project Kazakhstan 50,783 195,579
Dominion Uranium Project South Africa 50,473 50,473
(1)
United States United States 11,945 306,712
development projects
United States United States 596 255,974
exploration projects(1)
Hobson Facility and La United States 20,240 20,240
Palangana project (1)
United States United States 933 51,294
conventional mining
projects(1) (2)
Honeymoon Uranium Australia 32,518 86,553
Project(1)
Corporate and other (1) 26,067 26,067
Total 305,086 1,679,590
Refer to note 7.1
Previously Shootaring Canyon Mill
December 31, Mineral interests
2007
Non-
Depletable depletable Total
Country $`000 $`000 $`000
Akdala Kazakhstan 111,302 74,358 185,660
Uranium Mine
South Inkai Kazakhstan - 422,631 422,631
Uranium
Project
Kharasan Kazakhstan - 146,538 146,538
Uranium
Project
Dominion South - 1,756,018 1,756,018
Uranium Africa
Project
United United - 278,654 278,654
States States
development
projects
United United - 1,073,130 1,073,130
States States
exploration
projects
Hobson United - 56,869 56,869
Facility and States
La Palangana
Project
United United - 50,009 50,009
States States
conventional
mining
projects(1)
Honeymoon Australia - 276,087 276,087
Uranium
Project
Corporate - 21,461 21,461
and other
Total 111,302 4,155,755 4,267,057
December 31, 2007
Plant and Total
equipment
Country $`000 $`000
Akdala Uranium Mine Kazakhstan 15,906 201,566
South Inkai Uranium Kazakhstan 31,388 454,019
Project
Kharasan Uranium Kazakhstan 29,376 175,914
Project
Dominion Uranium South 350,146 2,106,164
Project Africa
United States United 7,184 285,838
development projects States
United States United 1,285 1,074,415
exploration projects States
Hobson Facility and United 33,503 90,372
La Palangana Project States
United States United 47,614 97,623
conventional mining States
projects(1)
Honeymoon Uranium Australia 23,951 300,038
Project
Corporate and other 19,943 41,404
Total 560,296 4,827,353
Previously Shootaring Canyon Mill
7.1 IMPAIRMENT OF MINERAL INTERESTS, PLANT AND EQUIPMENT
Impairment Future Net
income impairment
tax
recovery
$`000 $`000 $`000
Dominion Uranium Project 1,787,925 474,735 1,313,190
Honeymoon Uranium Project 194,938 59,196 135,742
Hobson Facility and La 83,409 19,024 64,385
Palangana Project
United States 47,808 - 47,808
conventional mining
projects
United States exploration 700,572 261,251 439,321
projects
Corporate and other 2,226 44 2,182
2,816,878 814,250 2,002,628
Dominion Uranium Project
On October 20, 2008, the Corporation`s board of directors has decided to
place the Dominion Uranium Project ("Dominion") on care and maintenance. A
significant deterioration in Dominion`s economics associated with the
continuing decline in uranium prices over the last year and significant
inflation-related increases in project costs, together with a slower than
expected ramp-up in development and production were the major factors that
contributed to the Corporation`s decision to place the Dominion project on
care and maintenance.
The Corporation impaired the carrying value of Dominion to its salvage value
of $50.5 million (ZAR(1) 419.8 million). The Corporation expects to incur $32
million to place the project in care and maintenance.
The Corporation carries foreign exchange translation losses of $238.5 million
in accumulated other comprehensive losses relating to the translation of its
investment in Uranium One Africa Limited ("Uranium One Africa"), a wholly
owned subsidiary, to US dollars. Uranium One Africa owns Dominion. The
foreign exchange losses was not taken into consideration in calculating the
impairment value and will only be realized in the statement of operations if
the Corporation sells its investment in Uranium One Africa.
Honeymoon Uranium Project
On October 15, 2008, The Corporation agreed with Mitsui & Co., Ltd. of Japan
("Mitsui & Co.") to create joint ventures in relation to the Australian
assets of the Corporation. Under the agreement, Mitsui & Co. will acquire a
49% interest in the Honeymoon project and the Corporation`s Australian
exploration portfolio.
The total minimum cash commitment from Mitsui will be approximately $82.2
million (A$ (2)104.0 million_ for its share of Uranium One Australia`s
business. The majority of these funds will be used to advance the
development of the Honeymoon Project through to commencement of production in
2010. The transaction remains subject to certain regulatory approvals,
including Australian Government regulatory approvals, which are expected by
the end of the year.
As the transaction value was below the carrying value of these assets, it was
tested for impairment. Honeymoon and the Australian exploration properties
were consequently written down to the implied transaction value, less
transaction costs. The Corporation impaired the carrying value of the
Honeymoon Uranium Project and exploration properties to its fair value of
$86.6 million (A$105.1 million).
Hobson Facility and La Palangana Project
From the mine planning process in the United States it was concluded that the
La Palangana project has an estimated fair value of $6.2 million, which was
substantially lower than its carrying value. The downward revision in value
was due to materially lower than anticipated recoverable resources at La
Palangana. In light of the reduced recoverable resources, the Corporation
decided to place the Hobson facility on care and maintenance and postpone the
development of La Palangana until additional feed for Hobson has been
identified.
United States conventional mining projects
The Corporation concluded that the Shootaring Canyon Mill cannot be operated
economically with the current available resource base and fully impaired the
carrying value of the mill, due to a negligible salvage value.
United States exploration projects and corporate and other assets
Impairments were recognized on United States exploration projects, and
corporate and other assets, due to various factors including economic
feasibility, metallurgical recovery factors, licensing and environmental
issues.
(1) ZAR: South African rand
(2) A$: Australian dollar
8 AVAILABLE FOR SALE SECURITIES
Sep 30, Dec 31,
2008 2007
$`000 $`000
Available for sale securities 1,420 21,257
$`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
securities included in the statement
of operations (932)
Increase due to foreign exchange 64
translation
Fair value adjustment included in 188
other comprehensive income
Balance as at December 31, 2007 21,257
Received as part of a joint venture 470
earn-in payment
Disposed during the period (17,425)
Impairment of available for sale (657)
securities included in the statement
of operations
Fair value adjustment included in (2,225)
other comprehensive income
Balance as at September 30, 2008 1,420
During the three months ended September 30, 2008, the Corporation did not
dispose of available for sale securities.
During the three months ended June 30, 2008, the Corporation disposed of its
investment in Randgold and Exploration Company Limited ("Randgold"). The
securities had a carrying value of $Nil. No value was allocated to the
investment as part of the purchase price allocation on April 20, 2007, due to
the suspension of Randgold on the Johannesburg stock exchange. Proceeds on
the sale of these securities amounted to $13.0 million which resulted in a
pre-tax gain on sale of securities of $13.0 million. Capital gains tax of
$1.5 million on the sale was offset against the assessed losses of Uranium
One Africa.
For the nine months ended September 30, 2008, the Corporation disposed of
further available for sale securities with a fair market value of $17.4
million. The securities had a cost basis of $17.2 million and fair value
losses included in other comprehensive income of $0.2 million. Proceeds on
the sale of these securities were $11.9 million which resulted in a loss on
sale of securities of $5.5 million. Capital gains tax of $0.9 million was
offset against the Corporation`s assessed losses.
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 20).
9 OTHER ASSETS
Sep 30, Dec 31,
2008 2007
$`000 $`000
Asset retirement fund 20,275 20,316
Advances for future services 10,000 10,629
Borrowed uranium concentrates 10,600 -
Long term inventory (note 6) - 7,772
Advances for plant and equipment 4,059 12,643
Prepaid financing fees 5,087 -
Long term deposits and guarantees 2,824 3,220
(note 4)
Reclamation bond payment on behalf of 1,094 1,094
UPC joint venture
Other 4,720 869
58,659 56,543
Credit facility
Prepaid financing fees relate to upfront costs and other costs incurred
associated with establishing a $100 million bank debt senior secured
revolving credit facility (the "facility") during the 3 months ended June 30,
2008. Under the terms of the facility, the Corporation has the ability to
borrow up to $100 million from the lead lenders, Bank of Montreal and The
Bank of Nova Scotia (the "Banks"). The facility has a two year term, and may
be extended for a further year with lender consent.
Draw downs under the facility can be made at interest rates based on either
the US dollar LIBOR rate or the Bank of Montreal base rate for US dollar
denominated loans (note 20). Undrawn amounts are subject to a commitment fee
currently ranging from 0.45% to 0.5% per annum.
Letters of credit can be issued under the facility at a fee of between 1.25%
and 2.00% per annum.
The Corporation has made a drawdown of $65 million under the credit facility
on October 20, 2008. The loan currently bears interest at 3.8% per year. A
letter of credit in the amount of $12.9 million was issued under the credit
facility on September 25, 2008 as security for a uranium concentrates loan of
200,000 pounds of U3O8 (note 12).
The Corporation has a balance of $22.1 million available to draw down from
the credit facility after the drawdown and letter of credit issued against
it.
The margins over the base interest rates, the commitment fee and the letter
of credit fee, are dependent on the ratio of the Corporation`s net debt
(consisting of total debt less certain cash balances) to its earnings before
interest, taxes, share based compensation, depreciation and depletion and
other non-cash items.
Draw downs under the facility may be used for general corporate purposes,
including working capital requirements and funding capital expenditures and
acquisitions.
On drawdown of the facility, the fees relating to loan origination costs will
be offset against the long term debt and will be amortized over the term of
the facility using the effective interest rate method.
Borrowed uranium concentrates
The Corporation entered into a uranium concentrates borrowing agreement to
ensure that it can meet its long term contractual obligations in terms of
future uranium sales contracts. A corresponding liability has been
recognized (note 12).
10 ASSETS HELD FOR SALE
In March 2008 the Corporation decided to sell non-core properties and as a
result certain exploration properties previously included in the United
States exploration operating segment have been classified as held for sale.
The Corporation has received letters of intent from potential buyers to
acquire certain of these properties. During the three month period ended
June 30, 2008, these assets held for sale were written down to their
estimated fair value, less selling costs, resulting in an impairment charge
of $105.1 million and a future income tax recovery of $23.9 million.
During the three month period ended September 30, 2008, the assets held for
sale have been written down further due to a change in circumstances and
market conditions. The resulting impairment amounted to $14.1 million and a
future income tax recovery of $1.5 million.
Mineral Future Net
Interest Income
Tax
$`000 $`000 $`000
Carrying value as at 122,167 (25,476) 96,691
December 31, 2007
Impairment (105,089) 23,880 (81,209)
Carrying value as at 17,078 (1,596) 15,482
June 30, 2008
Impairment (14,100) 1,461 (12,639)
Foreign exchange (275) - (275)
Carrying value as at 2,703 (135) 2,568
September 30, 2008
11 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Sep 30, Dec 31,
2008 2007
$`000 $`000
Trade payables 24,022 25,334
Accruals 21,288 24,461
Commodity and other taxes payable 1,778 11,280
Other 5,217 9,727
52,305 70,802
12 OTHER LONG TERM PAYABLES
Sep 30, Dec 31,
2008 2007
$`000 $`000
Uranium concentrates loan 10,221 -
Due to the Republic of Kazakhstan 1,849 1,824
Other 670 -
12,740 1,824
Uranium concentrates loan
On September 22, 2008, the Corporation entered into a loan agreement to
borrow 200,000 pounds of U3O8 to be repaid on September 30, 2010. Under the
loan agreement, loan fees of 3.5% per annum are payable based on the value of
the borrowed U3O8. In addition to the loan agreement, the Corporation
incurred $0.4 million in loan arrangement fees, which has been offset against
the loan, and will be amortized over the period of the loan. The Corporation
recognized the borrowed uranium as an Other asset (note 9). The loan and the
other asset are carried at fair value.
13 SHARE CAPITAL
Number of Value of
Issued and outstanding common shares 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 138,129,435 1,709,647
Uranium One shareholders at
acquisition
Exercise of warrants 150,000 2,033
Exercise of stock options and 4,354,617 47,311
restricted shares
U.S. Energy asset purchase 6,607,605 99,401
consideration
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 1,190,000 15,791
Exercise of stock options 1,043,016 7,358
Exercise of restricted shares 96,615 1,397
Balance of issued and outstanding 469,503,054 3,521,430
common shares at September 30, 2008
14 CONTRIBUTED SURPLUS
The following table details the movement of contributed surplus during the
period:
Restricte
d
Warrants shares Options Total
$`000 $`000 $`000 $`000
As at January 1, - - 31,286 31,286
2007
Issued on Uranium One
/ UrAsia Energy
business 26,407 853 34,782 62,042
combination
Issued on EMC asset - - 35,307 35,307
acquisition
Stock options - - 33,734 33,734
issued and vested
Stock options - - (29,213) (29,213)
exercised
Restricted shares - 3,926 - 3,926
vested
Restricted shares - (1,660) - (1,660)
exercised
Warrants exercised (1,035) - - (1,035)
As at December 31, 25,372 3,119 105,896 134,387
2007
Stock options - - 12,481 12,481
issued and vested
Stock options - - (3,957) (3,957)
exercised
Restricted shares - 1,079 - 1,079
issued and vested
Restricted shares - (1,397) - (1,397)
exercised
Warrants exercised (11,460) - - (11,460)
As at September 30, 13,912 2,801 114,420 131,133
2008
14 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:
September December
30, 2008 31, 2007
Risk free interest rate 3.11% 4.38%
Expected dividend yield 0% 0%
Expected volatility of the Uranium 69% 61%
One`s 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, the 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.
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 as at 21,658,500 2.90
January 1, 2007
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 (30,000) 1.80
to April 20, 2007
Outstanding options as at April 21,696,693 3.29
20, 2007
Converted UrAsia Energy stock 9,763,498 7.33
options on date of business
combination
Existing Uranium One share 5,390,754 6.67
options on April 20, 2007
EMC replacement options 8,382,546 8.14
Granted subsequent to April 20, 1,867,817 15.27
2007
Exercised subsequent to April (4,228,640) 5.14
20, 2007
Forfeitures of stock options (351,187) 13.14
subsequent to April 20, 2007
Outstanding options as at 20,824,788 8.55
December 31, 2007
Granted options 2,371,342 3.78
Exercised options (1,043,016) 3.74
Forfeitures of stock options (3,824,198) 9.65
Outstanding options as at 18,328,916 7.97
September 30, 2008
The stock option compensation expense for the three and nine months ended
September 30, 2008 was $2.7 million and $12.5 million respectively and for
the three and nine months ended September 30, 2007 it was $14.7 million and
$25.1 million respectively. As at September 30, 2008, the aggregate
unexpensed fair value of unvested stock options granted amounted to $8.9
million. The fair value of options granted during the nine months amounts to
$5.4 million.
14 CONTRIBUTED SURPLUS (continued)
The following table summarizes certain information about Uranium One`s stock
options outstanding at September 30, 2008:
Options outstanding
Range of Number Weighted Weighted
exercise outstandingas average average
prices at September remaining exercise price
30, life
2008
Cdn $ (years) Cdn $
1.09 to 2.74 1,360,492 1.28 2.35
2.75 to 4.76 4,511,021 4.19 3.86
4.77 to 7.79 3,417,904 2.68 6.58
7.80 to 9.90 3,605,654 6.10 8.48
9.91 to 12.93 3,456,801 3.08 12.06
12.94 to 15.63 809,127 4.05 14.08
15.64 to 16.59 1,167,917 3.60 16.53
18,328,916 3.81 7.97
Options exercisable
Range of Number Weighted Weighted
exercise exercisable as average average
prices at September 30, remaining exercise
2008 life price
Cdn $ (years) Cdn $
1.09 to 2.74 1,360,492 1.28 2.35
2.75 to 4.76 2,443,019 3.93 4.00
4.77 to 7.79 3,272,773 2.60 6.65
7.80 to 9.90 3,505,903 6.13 8.48
9.91 to 12.93 2,666,828 2.78 12.02
12.94 to 309,231 4.47 14.27
15.63
15.64 to 391,204 3.56 16.55
16.59
13,949,450 3.69 7.70
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
restricte
d shares
Balance at January 1, 2007 404,231
Granted 20,000
Exercised during the period (125,977)
Expired (2,722)
Balance at December 31, 2007 295,532
Granted 609,000
Exercised during the period (96,615)
Expired (44,020)
Balance at September 30, 2008 763,897
14 CONTRIBUTED SURPLUS (continued)
The following is a summary of the outstanding restricted share rights:
Sep 30, Dec 31,
2008 2007
Grant date
June 7, 2006 129,528 225,092
December 8, 2006 48,369 50,440
July 1, 2007 20,000 20,000
April 7, 2008 535,500 -
April 28, 2008 30,500 -
Balance at the end of the period 763,897 295,532
Restricted share rights will not expire while the right holder is an employee
of the Corporation.
The restricted share rights expense for the three and nine months ended
September 30, 2008 was $0.3 million and $1.1 million respectively and for the
three and nine months ended September 30, 2007 was $0.7 million and $3.3
million. As at September 30, 2008 the aggregate unexpensed fair value of
unvested restricted share rights granted amounted to $1.9 million. The fair
value of restricted shares granted during the nine months amounts to $2.4
million.
Warrants
Number of Allocated
warrants value
$`000
Balance at January 1, 2,731,619 26,407
2007
Exercised during the (150,000) (1,035)
period
Balance at December 31, 2,581,619 25,372
2007
Exercised during the (1,190,000) (11,460)
period
Lapsed during the (1,391,619) -
period
Balance at September - 13,912
30, 2008
Warrants
Sep 30, Dec 31, Sep 30, Dec 31,
2008 2007 2008 2007
$`000 $`000
2008 - 2,431,619 - 3.55
Warrants
Series D - 150,000 - 6.95
Warrants
Total - 2,581,619 - 3.75
The 2008 warrants expired 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 Kyzylkum.
The Corporation 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 1,971,100 common shares for issuance
pursuant to the assumed obligations under contingent share rights agreements.
15 INTEREST AND OTHER
3 months ended 9 months ended
Sep 30, Sep 30, Sep 30, Sep
2008 2007 2008 30,
2007
$`000 $`000 $`000 $`000
Interest income 2,650 5,806 8,539 11,153
Interest paid (262) (2,195) (262) (1,804
)
Convertible debenture (3,965) (3,707) (11,676 (7,090
interest ) )
Credit facility (906) - (906) -
charges
(2,483) (96) (4,305) 2,259
16 FOREIGN EXCHANGE (LOSSES) / GAINS
A summary of the foreign exchange (losses) / gains by item is as follows:
3 months ended 9 months ended
Sep 30, Sep 30, Sep 30, Sep
2008 2007 2008 30,
2007
$`000 $`000 $`000 $`000
Unrealized foreign (2,725) (2,009) (1,416) (16,78
exchange loss on 6)
future income tax
liability
Unrealized foreign 988 3,283 3,323 6,098
exchange gain on other
items
Realized foreign (1,072) 9,453 (4,902) 8,004
exchange (loss) / gain
on other items
(2,809) 10,727 (2,995) (2,684
)
17 CASH FLOW INFORMATION
3 months ended 9 months ended
Sep 30, Sep 30, Sep 30, Sep
2008 2007 2008 30,
2007
$`000 $`000 $`000 $`000
Changes in non-cash
working capital
excluding business
combinations:
Decrease in accounts 3,290 27,227 5,091 49,722
and other receivables
(Increase) / decrease (603) - 16,810 -
in prepaid expenses and
other
Increase in (924) (9,476) (5,300) (17,81
inventories 7)
Increase / (decrease) 1,654 (10,631 (20,542 (25,76
in accounts payable and ) ) 3)
accrued liabilities
Increase / (decrease) 5,576 (5,224) 8,356 1,077
in income taxes payable
8,993 1,896 4,415 7,219
Supplemental cash flow
information
Cash interest paid - - 3,267 3,201
Cash tax paid 10,447 7,184 28,660 20,831
18 BASIC AND DILUTED WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
3 months ended 9 months ended
Sep 30, Sep 30, Sep 30, Sep 30,
2008 2007 2008 2007
$`000 $`000 $`000 $`000
Basic weighted-average 468,518 422,308 468,047 324,894
number of shares
outstanding (`000)
Effect of dilutive
securities:
-stock options - - - -
-warrants - - - -
Diluted weighted- 468,518 422,308 468,047 324,894
average number of
shares outstanding
For the three and nine month periods ended September 30, 2008 and September
30, 2007, 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.
19 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.
The Corporation must maintain an interest coverage ratio of greater than 2.5
to meet the credit facility`s debt covenants. The interest coverage ratio is
calculated as the ratio of the Corporation`s earnings before interest, taxes,
share based compensation, depreciation and depletion and other non-cash items
("EBITDA") to interest paid.
For periods ended
Sep 30, Dec 31,
2008 2007
$`000 $`000
Total debt (excluding future income tax 250,542 453,751
liabilities)
Net debt (total debt less cash,
receivables, and current portion of
loans
to joint ventures) 69,850 190,974
Total capitalization (total 1,201,06 3,682,90
shareholders` equity) 1 5
Total debt as a percentage of 21% 12%
shareholders` equity
Net debt as a percentage of 6% 5%
shareholders` equity
Credit facility:
EBITDA (rolling 4 quarters) 110,104 91,905
Interest coverage ratio 7.1 7.4
20 FINANCIAL INSTRUMENTS
The Corporation`s financial instruments primarily consist of cash, short-term
money market investments, marketable securities, accounts receivable,
accounts payable, loans to joint ventures 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 items. The fair value of
the convertible debentures represents the quoted market value.
Convertible debentures Sep 30, Dec 31,
2008 2007
$`000 $`000
Liability component 135,560 136,548
Equity component 46,480 46,480
182,040 183,028
Fair value 118,630 145,888
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 cash flows
of operating segments to risks arising from fluctuations in exchange rates.
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.
(i) 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 is also exposed to 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.
20 FINANCIAL INSTRUMENTS (continued)
(i) Foreign exchange risk (continued)
The Corporation is primarily exposed to foreign currency risk through the
following assets and liabilities denominated in currencies other than US
dollars:
Financial assets and liabilities
Cash and Accounts Accounts Convertibl
cash receivabl payable e
equivalents e and debentures
accrued
liabilitie
s
September
30, 2008
$`000 $`000 $`000 $`000
Canadian 4,101 3,638 3,907 135,560
dollar
South 15,604 7,666 25,276 -
African
rand
Kazakhsta 26,328 50,930 15,693 -
n tenge
Australia 2,146 316 1,556 -
n dollar
48,179 62,550 46,432 135,560
Non-financial assets
and liabilities
Mineral interest Future
plant and income tax
equipment liabilities
(1)
September 30, 2008
$`000 $`000
Canadian dollar - -
South African rand 50,473 -
Kazakhstan tenge - 346,155
Australian dollar 86,553 3,488
137,026 349,643
Financial assets and liabilities
December 31, 2007 Cash and Accounts Accounts Convertible
cash receivable payable and debentures
equivalents accrued
liabilities
$`000
$`000 $`000 $`000
Canadian dollar 78,938 3,683 10,357 136,548
South African 1,330 9,606 33,168 -
rand
Kazakhstan tenge 2,787 3,128 16,411 -
Australian dollar 24,966 558 5,540 -
108,021 16,975 65,476 136,548
Non-financial assets and
liabilities
December 31, 2007 Mineral Future
interest income tax
plant and liabilities
equipment
(1)
$`000 $`000
Canadian dollar 21,216 5,831
South African rand 2,106,164 567,577
Kazakhstan tenge - 351,207
Australian dollar 300,038 69,039
2,427,418 993,654
(1)Only includes mineral interests, plant and equipment of self sustaining
operations.
The following table shows the effect on earnings and other comprehensive
income after tax as at September 30, 2008 of a 10% 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
A 10% appreciation in all foreign 6,883 (27,924)
currencies against the US dollar,
with all other variables held
constant.
A 10% depreciation in exchange rates would have the exact opposite effect on
other comprehensive income and net earnings.
20 FINANCIAL INSTRUMENTS (continued)
(ii) 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.
The Corporation`s maximum exposure to credit risk at the balance sheet date
is as follows:
Sep 30, Dec 31,
2008 2007
$`000 $`000
Short-term money market instruments 30,718 12,059
Accounts receivable 65,195 73,538
Available for sale securities 1,420 21,257
97,333 106,854
(iii) 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 19.
The Corporation has established a credit facility as part of its liquidity
risk management process (note 9). The Corporation has made its first draw
down against the facility in the amount of $65 million on October 20, 2008.
A letter of credit amounting to $12.9 million was issued against the facility
as part of the uranium concentrates loan (note 12). The following table
summarizes the contractual maturities of the Corporation`s significant
financial liabilities and capital commitments:
Less 1 to 3 4 to 5 After 5
than
1 year years years years Total
Lease 887 4,343 1,566 1,692 8,488
obligations
Kyzylkum Long - 19,200 10,568 - 29,768
term debt
Capital 55,933 29,021 - - 84,954
commitments
Asset 37 - - 14,897 14,934
retirement
obligations
Accounts 52,305 - - - 52,305
payable and
accrued
liabilities
Uranium - 10,600 - - 10,600
concentrates
loan (note 12)
Convertible - 146,457 - - 146,457
debentures
109,162 209,621 12,134 16,589 347,506
The convertible debenture is convertible in cash or shares, and may not
result in a cash outflow. The uranium concentrates loan requires settlement
with uranium concentrates, and may not result in a cash outflow.
20 FINANCIAL INSTRUMENTS (continued)
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.
The Corporation is exposed to liquidity risk from fluctuating commodity
prices with respect to repayment of the uranium concentrates loan. On
September 22, 2008, the Corporation entered into a loan agreement to borrow
200,000 pounds of uranium concentrates to ensure timely delivery of certain
sales commitments (note 12). Under the terms of the loan agreement, the
Corporation received 200,000 pounds of uranium concentrates into its account
on September 30, 2008 and is required to repay 200,000 pounds of uranium
concentrates on September 30, 2010.
The Corporation will only be exposed to liquidity risk from fluctuating
commodity prices when it does not have 200,000 pounds of uranium concentrates
available to repay the loan at any time up to September 30, 2010. As the
market value of the liability to repay 200,000 pounds of uranium concentrates
fluctuates based on commodity prices, so will the market value of the 200,000
pounds of uranium concentrates held available for repayment under this loan
agreement. As a result, the 200,000 pounds uranium concentrates asset and
liability will have the exact opposite effect from commodity price
fluctuations.
A 10% change in commodity prices, should the Corporation be exposed, would
impact the Corporation`s liquidity risk, due to the uranium concentrates loan
(note 12), as follows:
Sep 30, Sep 30,
2008 2007
$`000 $`000
A 10% appreciation in commodity
prices, with all other
variables held constant 1,290 -
A 10% depreciation in the commodity price would have the exact opposite
effect on net earnings.
(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 September 30, 2008 are the loan facility obtained by
Kyzylkum (note 5.1) which bears interest at floating rates, and the
convertible debentures, with a fixed interest rate.
Draw downs under the Corporation`s credit facility (note 9) can be made at
interest rates based on either the US dollar LIBOR rate or the Bank of
Montreal base rate for US dollar denominated loans. The margin on LIBOR
loans is between 1.25% and 2.00% per annum and between 0.25% and 1.00% per
annum on US base rate loans.
A 100 basis point change in the interest rate would impact the Corporation`s
net earnings as follows:
Sep 30, Dec 31,
2008 2007
$`000 $`000
A 100 basis point appreciation in
interest rates, with all other
variables
held constant 216 40
A 100 basis point 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 having
market related 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:
Sep 30, Sep 30,
2008 2007
$`000 $`000
A 10% appreciation in commodity
prices, with all other
variables held constant 12,863 7,301
A 10% depreciation in the commodity price would have the exact opposite
effect on net earnings.
21 SEGMENTED INFORMATION
The Corporation`s reportable operating segments are summarized in the
table below:
For the three months ended September 30, 2008: (in $`000)
Country Revenues Operating Depreciation
expenses and depletion
$`000 $`000 $`000
Akdala Kazakhstan 56,723 (11,793) (8,305)
Uranium
Mine
South Inkai Kazakhstan - - -
Uranium
Project
Kharasan Kazakhstan - - -
Uranium
Project
Dominion South - - -
Uranium Africa
Project (1)
United United - - -
States States
development
projects
United United - - -
States States
exploration
projects
(1)
Hobson United - - -
Facility States
and La
Palangana
Project (1)
United United - - -
States States
conventiona
l mining
projects(1)
(2)
Honeymoon Australia - - -
Uranium
Project
(1)
Corporate - - -
and other
(1)
Total 56,723 (11,793) (8,305)
Country Exploration Net Capital
expense earnings/ expenditure
(loss) from
continuing
operations
$`000 $`000 $`000
Akdala Kazakhstan - 23,707 1,279
Uranium
Mine
South Inkai Kazakhstan - (768) 9,273
Uranium
Project
Kharasan Kazakhstan - 4,285 4,204
Uranium
Project
Dominion South (433) (1,313,549) 39,128
Uranium Africa
Project (1)
United United - - 1,938
States States
development
projects
United United (3,183) (445,582) 446
States States
exploration
projects
(1)
Hobson United - (64,359) 5,319
Facility States
and La
Palangana
Project (1)
United United - (49,071) 662
States States
conventiona
l mining
projects(1)
(2)
Honeymoon Australia (701) (136,447) 1,471
Uranium
Project
(1)
Corporate (1,071) (31,900) 113
and other
(1)
Total (5,388) (2,013,684) 63,833
(1)Refer note 7.1
(2)Previously Shootaring Canyon Mill
For the nine months ended September 30, 2008: (in $`000)
Country Revenues Operating Depreciation
expenses and
depletion
$`000 $`000 $`000
Akdala Kazakhstan 128,630 (24,572) (18,196)
Uranium Mine
South Inkai Kazakhstan - - -
Uranium
Project
Kharasan Kazakhstan - - -
Uranium
Project
Dominion South Africa - - -
Uranium
Project
United States United States - - -
development
projects
United States United States - - -
exploration
projects
Hobson United States - - -
Facility and
La Palangana
Project
United States United States - - -
conventional
mining
projects(1)
Honeymoon Australia - - -
Uranium
Project
Corporate and - - -
other
Total 128,630 (24,572) (18,196)
Country Explorati Net earnings/ Capital
on (loss) from expenditure
expense continuing
operations
$`000 $`000 $`000
Akdala Kazakhstan - 50,124 6,839
Uranium Mine
South Inkai Kazakhstan - 391 28,175
Uranium
Project
Kharasan Kazakhstan - 5,213 16,204
Uranium
Project
Dominion South Africa (973) (1,315,363) 95,033
Uranium
Project
United States United States - (57) 7,581
development
projects
United States United States (4,997) (447,467) 669
exploration
projects
Hobson United States - (64,365) 13,375
Facility and
La Palangana
Project
United States United States (11) (49,379) 3,511
conventional
mining
projects(1)
Honeymoon Australia (2,229) (139,375) 12,651
Uranium
Project
Corporate and (3,893) (131,914) 2,232
other
Total (12,103) (2,092,192) 186,270
(1) Previously Shootaring Canyon Mill
21 SEGMENTED INFORMATION (continued)
For the three months ended September 30, 2007: (in $`000)
Country Revenues Operating Depreciatio
expenses n
and
depletion
$`000 $`000 $`000
Akdala Kazakhstan 8,019 (660) (1,058)
Uranium
Mine
South Inkai Kazakhstan - - -
Uranium
Project
Kharasan Kazakhstan - - -
Uranium
Project
Dominion South - - -
Uranium Africa
Project
United United - - -
States States
development
projects
United United - - -
States States
exploration
projects
Hobson United - - -
Facility States
and La
Palangana
Project
United United - - -
States States
conventiona
l mining
projects(1)
Honeymoon Australia - - -
Uranium
Project
Corporate - - -
and other
Total 8,019 (660) (1,058)
Country Exploration Net earnings/ Capital
expense (loss) from expenditure
continuing
operations
$`000 $`000 $`000
Akdala Kazakhstan - 1,998 769
Uranium Mine
South Inkai Kazakhstan - (3) 11,491
Uranium
Project
Kharasan Kazakhstan - 888 7,463
Uranium
Project
Dominion South Africa (167) (150) 49,041
Uranium
Project
United States United - - -
development States
projects
United States United (2,261) (4,875) 381
exploration States
projects
Hobson United - (2,636) 3,073
Facility and States
La Palangana
Project
United States United (23) (536) 5
conventional States
mining
projects(1)
Honeymoon Australia (491) (906) 6,102
Uranium
Project
Corporate and (1,871) (10,760) 2,475
other
Total (4,813) (16,980) 80,800
(1)Previously Shootaring Canyon Mill
For the nine months ended September 30, 2007: (in $`000)
Country Revenues Operating Depreciation
expenses and depletion
$`000 $`000 $`000
Akdala Kazakhstan 73,014 (9,761) (7,933)
Uranium Mine
South Inkai Kazakhstan - - -
Uranium
Project
Kharasan Kazakhstan - - -
Uranium
Project
Dominion South
Uranium Africa
Project
United States United - - -
development States
projects
United States United - - -
exploration States
projects
Hobson United - - -
Facility and States
La Palangana
Project
United States United - - -
conventional States
mining
projects(1)
Honeymoon Australia - - -
Uranium
Project
Corporate and - - -
other
Total 73,014 (9,761) (7,933)
Country Explorati Net earnings/ Capital
on (loss) from expenditure
expense continuing
operations
$`000 $`000 $`000
Akdala Uranium Kazakhstan - 26,060 4,211
Mine
South Inkai Kazakhstan - 123 30,504
Uranium
Project
Kharasan Kazakhstan - (1,141) 14,649
Uranium
Project
Dominion South Africa (520) 247 88,601
Uranium
Project
United States United States - - -
development
projects
United States United States (3,229) (26,743) 381
exploration
projects
Hobson United States - (2,636) 3,073
Facility and
La Palangana
Project
United States United States (31) (850) 5
conventional
mining
projects(1)
Honeymoon Australia (909) (1,804) 11,554
Uranium
Project
Corporate and (5,947) (15,373) 10,982
other
Total (10,636) (22,117) 163,960
(1) Previously Shootaring Canyon Mill
21 SEGMENTED INFORMATION (continued)
As at September 30, 2008: (in $`000)
Mineral
interest
plant and Total
Country equipment assets
$`000 $`000
Akdala Uranium Kazakhstan 195,818 234,160
Mine
South Inkai Kazakhstan 490,880 495,406
Uranium Project
Kharasan Kazakhstan 195,579 200,326
Uranium Project
Dominion South Africa 50,473 64,610
Uranium Project
United States United States 306,712 306,712
development
projects
United States United States 255,974 258,764
exploration
projects
Hobson Facility United States 20,240 22,043
and La
Palangana
Project
United States United States 51,294 65,320
conventional
mining
projects(1)
Honeymoon Australia 86,553 87,324
Uranium Project
Corporate and 26,067 228,770
other
Total 1,679,590 1,963,435
Future
income tax Total
Country liabilities liabilities
$`000 $`000
Akdala Uranium Kazakhstan 67,480 81,051
Mine
South Inkai Kazakhstan 205,892 211,992
Uranium Project
Kharasan Kazakhstan 72,783 109,071
Uranium Project
Dominion South Africa - 29,092
Uranium Project
United States United States 90,479 91,506
development
projects
United States United States 85,574 86,283
exploration
projects
Hobson Facility United States - 3,147
and La
Palangana
Project
United States United States 18,613 21,437
conventional
mining
projects(1)
Honeymoon Australia 3,487 5,058
Uranium Project
Corporate and - 156,078
other
Total 544,308 794,715
(1)Previously Shootaring Canyon Mill
As at December 31, 2007: (in $`000)
Mineral
interest
plant and Total
Country equipment assets
$`000 $`000
Akdala Uranium Kazakhstan 201,566 266,240
Mine
South Inkai Kazakhstan 454,019 457,510
Uranium Project
Kharasan Kazakhstan 175,914 184,283
Uranium Project
Dominion South Africa 2,106,164 2,111,565
Uranium Project
United States United States 285,838 285,838
development
projects
United States United States 1,074,415 1,079,794
exploration
projects
Hobson Facility United States 90,372 91,879
and La
Palangana
Project
United States United States 97,623 112,894
conventional
mining
projects(1)
Honeymoon Australia 300,038 300,043
Uranium Project
Corporate and 41,404 341,251
other
Total 4,827,353 5,231,297
Future
income tax Total
Country liabilities liabilities
$`000 $`000
Akdala Uranium Kazakhstan 73,623 94,710
Mine
South Inkai Kazakhstan 205,053 207,461
Uranium
Project
Kharasan Kazakhstan 72,486 92,422
Uranium
Project
Dominion South Africa 567,577 598,102
Uranium
Project
United States United States 90,517 92,187
development
projects
United States United States 370,229 374,210
exploration
projects
Hobson United States 19,729 22,639
Facility and
La Palangana
Project
United States United States 18,613 21,186
conventional
mining
projects(1)
Honeymoon Australia 69,040 86,613
Uranium
Project
Corporate and 9,193 152,072
other
Total 1,496,060 1,741,602
(1)Previously Shootaring Canyon Mill
22 SUBSEQUENT EVENTS
Material transactions occurring subsequent to September 30, 2008, are
described in notes 7.1 and 20 (iii).
Nedbank Capital
14 November 2008
Date: 14/11/2008 14:00:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
