| Mon 16 Mar 2009, 13:01 | | UUU - Uranium One Inc - Uranium One Announces Results for 2008 |
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UUU - Uranium One Inc - Uranium One Announces Results for 2008
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
March 16, 2009
Uranium One Announces Results for 2008
Vancouver, British Columbia - Uranium One Inc. ("Uranium One") today reported
operational and financial results for the year ending December 31, 2008.
The financial statements, as well as the accompanying management`s discussion
and analysis, are available for review at www.uranium1.com and should be read in
conjunction with this news release.
All figures are in US dollars unless otherwise indicated.
Highlights:
- Attributable production during 2008 of 2,864,700 pounds of U3O8, an
increase of 41% from 2,038,700 pounds of U3O8 in 2007
- Attributable sales volumes of 2,210,900 pounds of U3O8 during 2008, a 37%
increase compared to sales of 1,608,700 pounds of U3O8 in 2007
- Average realized sales price during 2008 of $68 per pound of U3O8,
generating revenue of $149.8 million, compared to an average realized price
of $83 per pound, generating revenue of $134.0 million in 2007
- Earnings from mine operations were $96.7 million during 2008, a 5% decrease
over earnings from mine operations of $101.8 million during 2007, primarily
due to a lower realized U3O8 sales price
- Concluded a $100 million senior secured revolving credit facility with Bank
of Montreal and The Bank of Nova Scotia
- Received an inaugural dividend of $40 million from the Betpak Dala joint
venture
- Completed joint venture transactions with Mitsui & Co., Ltd., whereby
Mitsui has acquired a 49% stake in the Australian assets of Uranium One for
a minimum cash commitment of A$104 million
- South Inkai Mine received industrial production approvals, allowing
commercial production to commence on January 1, 2009
- Wrote down mineral interests, plant and equipment by $2.4 billion (net of
future income tax recoveries): $1.3 billion on Dominion; $1.0 billion on
properties in the United States; and $0.1 billion on Honeymoon and
Australian exploration
- Subsequent to year end, announced a C$270 million private placement and
formation of a strategic relationship with a Japanese consortium
Jean Nortier, President and CEO of Uranium One commented:
"Following on from strong production results and sales volumes in 2008, Uranium
One is well positioned to continue to execute on our growth plans during 2009.
Akdala continues to perform in line with expectations and the ramp-up at South
Inkai remains on target. Uranium One`s balance sheet is one of the strongest in
the uranium industry and we expect that we will be able to take advantage of
opportunities today that will enhance our position in what we continue to
believe will be a bright future for the nuclear industry tomorrow."
Outlook
Uranium One`s attributable production estimate for 2009 is estimated at 3.5
million pounds, comprising 1.8 million pounds from Akdala, 1.5 million pounds
from South Inkai and 0.2 million pounds from Kharasan. Total attributable
production for 2010 is estimated at 5.6 million pounds.
Uranium One expects the average cash cost per pound of U3O8 sold(1) at Akdala
during 2009 to be approximately $15 per pound. The average cash cost per pound
of U3O8 sold at South Inkai during 2009 is expected to be $28 per pound, with a
cost per pound sold of approximately $20 by the end of the year.
Uranium One`s total contracts for sales of U3O8 amount to 26 million
attributable pounds, of which 16 million pounds have weighted average floor
prices of approximately $47 per pound. For 2009, Uranium One expects to sell an
aggregate of 2.8 million attributable pounds of U3O8. The Corporation has
already contracted for the sale of 2.2 million attributable pounds of U3O8 in
2009, of which 700,000 pounds have weighted average floor prices of $43 per
pound.
In line with increasing levels of production from Betpak Dala`s operations,
attributable inventory levels are expected to increase from approximately 1.2
million pounds of U3O8 at December 31, 2008 to approximately 1.8 million pounds
of U3O8 by the end of 2009.
During 2009, Uranium One expects to incur capital expenditures of $21 million
for the development of assets in Wyoming and $6 million toward the costs of
constructing a sulphuric acid plant in Kazakhstan.
General and administrative costs, excluding non-cash items, are expected to be
approximately $28 million for 2009. Exploration expenditure for 2009 is
expected to be $12 million. Care and maintenance costs at Dominion are expected
to be $12 million for 2009.
In 2009 to the end of February, Betpak Dala has received more than its expected
allocation of sulphuric acid. Both the Betpak Dala and Kyzylkum joint ventures
are expected to have sufficient sulphuric acid supplies to meet 2009 production
targets at Akdala, South Inkai and Kharasan.
2008 Financial Review
The average cash cost per pound of U3O8 sold in 2008 was inline with
expectations at $14 per pound, $3 per pound higher than the $11 average cash
cost per pound sold recorded in 2007.
The net loss from continuing operations in 2008 was $2.3 billion, or $4.98 per
basic and diluted share, compared to a net loss from continuing operations in
2007 of $16.2 million, or $0.05 per basic and diluted share.
Adjusted net earnings(1) for 2008 were $22.3 million, or $0.05 per basic and
diluted share compared to adjusted net earnings during 2007 of $3.4 million, or
$0.01 per basic and diluted share.
The Company wrote down mineral interests, plant and equipment by $3.3 billion in
2008, consisting of $1.8 billion on Dominion, $0.9 billion on United States
exploration properties, $0.2 billion on United States development projects, $0.2
billion on Honeymoon and Australian exploration, $0.1 billion on United States
conventional mining properties and $0.1 billion on Hobson and La Palangana. The
future income tax recovery on the write down was $1.0 billion, resulting in a
net total impairment of $2.4 billion.
Consolidated cash and cash equivalents were $176.2 million as at December 31,
2008 compared to $159.6 million at December 31, 2007. Working capital was
$204.7 million as at December 31, 2008.
Conference Call Details
Uranium One will be hosting a conference call and webcast to discuss the 2008
results on March 16, 2009 starting at 10:00 a.m. (Eastern Time). Participants
may join the call by dialling toll free 1-800-594-3790 or 1-416-915-5761 for
local calls or calls from outside Canada and the United States. A live webcast
of the call will be available through CNW Group`s website at:
www.newswire.ca/webcast
A recording of the conference call will be available for replay for a two week
period beginning at approximately 12:00 p.m. (Eastern Time) on March 16, 2009 by
dialling toll free 1-877-289-8525 or 1-416-640-1917 for local calls or calls
from outside Canada and the United States. The pass code for the replay is
21300364. A replay of the webcast will be available through a link on our
website at www.uranium1.com
About Uranium One
Uranium One is one of the world`s largest publicly traded uranium producers with
a globally diversified portfolio of assets located in Kazakhstan, the United
States, South Africa and Australia.
(1) The Corporation has included non-GAAP performance measures: sales price per
pound of U3O8, cost per pound of U3O8 sold, adjusted net earnings / loss
and adjusted net earnings / loss per share. The Corporation reports total
cash costs on a sales basis. In the uranium mining industry, these are
common performance measures but do not have any standardized meaning, and
are non-GAAP measures. The Corporation believes that, in addition to
conventional measures prepared in accordance with GAAP, the Corporation and
certain investors use this information to evaluate the Corporation`s
performance and ability to generate cash flow. The additional information
provided herein should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with GAAP.
For further information, please contact:
Jean Nortier
Chief Executive Officer
Tel: +1 604 601 5642
Chris Sattler
Executive Vice President, Corporate Development and Investor Relations
Tel: + 1 416 350 3657
Cautionary Statement
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Forward-looking statements: This press release contains certain forward-looking
statements. Forward-looking statements include but are not limited to those
with respect to the price of uranium and gold, the estimation of mineral
resources and reserves, the realization of mineral reserve estimates, the timing
and amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of new deposits, success of
exploration activities, permitting time lines, currency fluctuations,
requirements for additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, title disputes or
claims and limitations on insurance coverage and the timing and possible outcome
of pending litigation. In certain cases, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does not expect",
"is expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes" or variations of such
words and phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved. Forward-
looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of
Uranium One to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Such risks
and uncertainties include, among others, the actual results of current
exploration activities, conclusions of economic evaluations, changes in project
parameters as plans continue to be refined, possible variations in grade and ore
densities or recovery rates, failure of plant, equipment or processes to operate
as anticipated, accidents, labour disputes or other risks of the mining
industry, delays in obtaining government approvals or financing or in completion
of development or construction activities, risks relating to the integration of
acquisitions, to international operations, to prices of uranium and gold as well
as those factors referred to in the section entitled "Risk Factors" in Uranium
One`s Annual Information Form for the year ended December 31, 2007, which is
available on SEDAR at www.sedar.com, and which should be reviewed in conjunction
with this document. Although Uranium One has attempted to identify important
factors that could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Uranium One expressly disclaims
any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except in
accordance with applicable securities laws.
For further information about Uranium One, please visit uranium1.com.
Date: 16/03/2009 13:01:02 Produced by the JSE SENS Department.
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