| Mon 11 May 2009, 9:05 | | UUU - Uranium One Inc - Uranium One Announces Record Quarterly Sales and |
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UUU
UUU
UUU - Uranium One Inc - Uranium One Announces Record Quarterly Sales and
Increased Production for Q1 2009
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
Uranium One Inc.
900 - 1285 West Pender Street
Vancouver, British Columbia V6E 4B1
Trading Symbols: UUU - Toronto Stock Exchange, JSE Limited (Johannesburg
Stock Exchange)
NEWS RELEASE
May 11, 2009
Uranium One Announces Record Quarterly Sales and
Increased Production for Q1 2009
Vancouver, British Columbia - Uranium One Inc. ("Uranium One") today reported
operational and financial results for the quarter ending March 31, 2009.
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. All references to pounds sold or pounds produced are
pounds of U3O8.
Q1 2009 Highlights:
- Attributable commercial production of 700,900 pounds during Q1 2009 was
62% higher than the 431,500 pounds of commercial production during Q1
2008.
- Attributable sales volumes during Q1 2009 were 880,600 pounds, an
increase of 211% from attributable sales volumes of 283,300 pounds during
Q1 2008 and an increase of 59% over the average quarterly sales volume
during 2008.
- The average realized sales price during Q1 2009 was $49 per pound,
generating revenue of $43.0 million, compared to an average realized
sales price of $79 per pound, generating revenue of $22.5 million during
Q1 2008.
- The average total cash cost per pound sold was $17 per pound during Q1
2009.
- Earnings from mine operations were $15.9 million during Q1 2009, a 2%
decrease over earnings from mine operations of $16.3 million during Q1
2008, primarily due to the decrease in the average realized sales price
offsetting the increase in sales volumes.
Jean Nortier, President and CEO of Uranium One commented:
"With higher than expected deliveries of sulphuric acid, Uranium One achieved
very solid operational results during the first quarter. Also during the
quarter, South Inkai became our second operation to enter into commercial
production and is already making a significant contribution to our cash flow.
With continued delivery on our operational targets, 2009 is shaping up to be
an excellent year for Uranium One."
Operations and Projects
- Total production (including pre-commercial production) during Q1 2009 was
708,500 pounds, an increase of 14% from total production of 618,900
pounds during Q1 2008.
- Acidification of one new production block commenced at Akdala and
acidification of three new production blocks commenced at South Inkai.
The well field acidification program at South Inkai is approximately one
month ahead of schedule.
- At the Akdala Uranium Mine, attributable production during Q1 2009 was
455,800 pounds; cash operating costs were $13 per pound sold during the
quarter.
- The South Inkai Uranium Mine commenced commercial production on January
1, 2009 and the production ramp-up continues on schedule. Attributable
production during Q1 2009 was 245,100 pounds; cash operating costs for Q1
2009 were $20 per pound sold.
- The Kharasan Uranium Project was officially opened by the Prime Minister
of Kazakhstan on April 24, 2009; pilot production continued during Q1
2009 with attributable pre-commercial production during the quarter of
7,600 pounds.
Outlook
Uranium One`s attributable production estimate for 2009 remains 3.5 million
pounds. The total attributable production estimate for 2010 remains 5.6
million pounds.
During 2009, the average cash cost per pound sold is expected to be
approximately $16 per pound at Akdala, including Kazakh mineral extraction tax
of approximately $2 per pound. The average cash cost per pound sold is
expected to be approximately $22 per pound at South Inkai, including Kazakh
mineral extraction tax of approximately $4 per pound.
Uranium One has contracts for the sale of an aggregate of 25 million
attributable pounds, of which 16 million pounds have weighted average floor
prices of approximately $47 per pound. The remainder of contracted
attributable sales are not subject to floor prices and such sales are related
to the spot price of U3O8, except for 910,000 pounds which will be sold at an
average fixed price of $79 per pound, subject to escalation provisions.
During 2009, Uranium One expects to sell an aggregate of 2.8 million
attributable pounds, of which 2.2 million pounds have already been contracted
for including 700,000 pounds with 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
962,900 pounds at March 31, 2009 to approximately 1.8 million pounds by the
end of the year.
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.
During 2009, capital expenditure estimates at Betpak Dala are expected to be
$30 million for South Inkai and $6 million for Akdala (on an attributable
basis).
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.
The C$270 million private placement and formation of a strategic relationship
with a Japanese consortium announced in February 2009 will be completed
following receipt of regulatory approval from the Kazakhstan Ministry of
Energy and Mineral Resources, which is expected during Q2 2009.
Q1 2009 Financial Review
Revenues for Q1 2009 were $43.0 million, compared to $22.5 million during Q1
2008. The increase is due to higher sales volumes, somewhat offset by a lower
realized sales price.
The average cash cost per pound sold in the first quarter of 2009 was $17 per
pound. This was an increase over the $12 average cash cost per pound sold
recorded in Q1 2008 due to the inclusion of initial commercial production from
the South Inkai Uranium Mine, which is currently in ramp up.
The net earnings from continuing operations in the first quarter of 2009 were
$63.4 million, or $0.13 per basic and diluted share, compared to a net loss
from continuing operations in the first quarter of 2008 of $10.3 million, or
$0.02 per basic and diluted share.
The adjusted net loss for the first quarter of 2009 was $5.5 million, or $0.01
per basic and diluted share compared to an adjusted net loss for the first
quarter of 2008 of $9.4 million, or $0.02 per basic and diluted share.
Consolidated cash and cash equivalents were $203.9 million as at March 31,
2009 compared to $176.2 million at December 31, 2008. Working capital was
$265.6 million as at March 31, 2009.
FINANCIAL SUMMARY Q1 2009 Q1 2008
Attributable production (lbs) (1) 700,900 431,500
Attributable sales (lbs) (1) 880,600 283,300
Average realized sales price ($ per 49 79
lb) (2)
Average cash cost of production sold 17 12
($ per lb)(2)
Revenues ($ millions) 43.0 22.5
Earnings from mine operations ($ 15.9 16.3
millions)
Net earnings / (loss) from continuing 63.4 (10.3)
operations ($ millions)
Earnings / (loss) per share from 0.13 (0.02)
continuing operations - basic and
diluted ($ per share)
Loss from discontinued operations ($ (2.2) (104.6)
millions)
Loss per share from discontinued (0.00) (0.22)
operations - basic and diluted ($ per
share)
Net earnings / (loss) ($ millions) 61.1 (114.9)
Net earnings / (loss) per share - 0.13 (0.25)
basic and diluted ($ per share)
Adjusted net loss ($ millions)(2) (5.5) (9.4)
Adjusted net loss per share - basic ($ (0.01) (0.02)
per share)(2)
Notes:
1. Attributable production and sales are from assets in commercial
production during the quarter (Akdala and South Inkai in Q1 2009 and
Akdala in Q1 2008).
2. The Corporation has included non-GAAP performance measures: average
realized sales price per pound, cash cost per pound sold, adjusted net
earnings/(loss) and adjusted net earnings/(loss) per share. 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.
The following table provides a reconciliation of adjusted net earnings /
(loss) to the consolidated financial statements:
Figures in US$ 000`s, except per share Q1 2009 Q1 2008
Net earnings / (loss) from continuing operations 63,356 (10,315)
Unrealized foreign exchange gain on future income (68,899) (1,138)
tax liabilities
Loss on sale of available for sale securities - 2,008
Adjusted net earnings / (loss) (5,543) (9,445)
Adjusted net earnings per share - basic ($) (0.01) (0.02)
Weighted average number of shares (thousands) - 469,614 467,451
basic
Conference Call Details
Uranium One will be hosting a conference call and webcast to discuss the first
quarter 2009 results on Monday, May 11, 2009 starting at 10:00 a.m. (Eastern
Time). Participants may join the call by dialling toll free 1-800-731-5319 or
1-416-644-3424 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 May 11, 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
21305467. 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.
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, 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 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, 2008, which is available on
SEDAR at www.sedar.com, and which should be reviewed in conjunction with this
document. Although Uranium One has attempted to identify important factors
that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. Uranium One expressly
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except in accordance with applicable securities laws.
For further information about Uranium One, please visit www.uranium1.com.
Date: 11/05/2009 09:05:01 Produced by the JSE SENS Department.
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