| Tue 11 Aug 2009, 11:19 | | UUU - Uranium One Announces 75% Increase in Production for the First |
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UUU
UUU
UUU - Uranium One Announces 75% Increase in Production for the First
Half of 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
August 10, 2009
Uranium One Announces 75% Increase in Production for the First Half of 2009
Vancouver, British Columbia - Uranium One Inc. ("Uranium One") today reported
operational and financial results for the quarter ending June 30, 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 U.S. dollars unless
otherwise indicated. All references to pounds sold or pounds produced are
pounds of U3O8.
Q2 2009 Highlights:
- Total attributable production of 833,800 pounds during Q2 2009, 9%
higher than the 767,100 pounds of attributable production recorded
during Q2 2008 and 18% higher than total attributable production of
708,500 in Q1 2009.
- The average total cash cost per pound sold was $17 per pound during Q2
2009.
- In line with scheduled deliveries under sales existing contracts,
attributable sales volumes during Q2 2009 were 385,100 pounds, 44% lower
than attributable sales volumes of 685,600 pounds during Q2 2008.
- The average realized sales price during Q2 2009 was $48 per pound,
generating revenue of $18.6 million, compared to an average realized
sales price of $72 per pound, generating revenue of $49.4 million during
Q2 2008.
- Earnings from mine operations were $6.6 million during Q2 2009, an 80%
decrease compared to earnings from mine operations of $32.9 million
during Q2 2008.
- On June 15, 2009 Uranium One announced the signing of a definitive
purchase agreement to acquire a 50% interest in the Karatau Uranium Mine
in Kazakhstan from ARMZ.
Jean Nortier, President and CEO of Uranium One commented:
"Uranium One achieved record production during the second quarter, driven by
steady performance from Akdala and the ramp-up in production from South
Inkai, which continues to meet targets. Our mines are continuing to generate
healthy operating margins with total cash costs per pound sold in line with
our expectations at $17 per pound during the quarter."
Operations and Projects
For the six months ending June 30, 2009 Uranium One`s attributable production
was 1,516,400 pounds U3O8, an increase of 75% over attributable production of
866,800 pounds U3O8 for the comparable period in 2008. The average cash cost
per pound sold was $17 per pound during the six months ending June 30, 2009,
compared to $13 per pound during the comparable period in 2008.
Operational results for Uranium One`s operations and project during Q2 2009
were:
- At the Akdala Uranium Mine, attributable production of 438,800 pounds;
total cash costs were $13 per pound sold.
- At the South Inkai Uranium Mine, attributable production of 376,700
pounds; cash operating costs for Q2 2009 were $23 per pound sold.
- At the Kharasan Uranium Project, pilot production continued during the
quarter, with attributable production during commissioning of 18,300
pounds.
On July 9, 2009 Uranium One announced an updated NI 43-101 compliant mineral
resource estimate for South Inkai provided by Hellman & Schofield Pty. Ltd.
as at December 31, 2008 with total indicated resources of 34.1 million tonnes
at a U3O8 grade of 0.053%, containing 39.6 million pounds U3O8 (27.7 million
pounds attributable to Uranium One) and total inferred resources of 42.8
million tonnes at a U3O8 grade of 0.047%, containing 44.4 million pounds U3O8
(31.1 million pounds attributable to Uranium One). The previously reported
mineral resource estimate dated October 2, 2006 was 57.7 million tonnes
grading 0.048% U3O8, containing 62.0 million pounds U3O8 in the inferred
category (43.4 million pounds attributable to Uranium One).
Outlook
Uranium One`s attributable production estimate for 2009 remains 3.5 million
pounds. With the completion of the acquisition of the 50% joint venture
interest in Karatau, total production guidance for 2010 will increase by 35%
from 5.6 million pounds to 7.5 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 currently has contracts for the sale of an aggregate of 25
million attributable pounds, 16 million pounds of which are contracted at
weighted average floor prices of approximately $46 per pound. The remainder
of contracted attributable sales are not subject to floors 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.
For 2009, Uranium One expects to sell between 2.4 million and 2.8 million
attributable pounds. Uranium One has already contracted for the sale of 2.2
million attributable pounds in 2009, of which 700,000 pounds have weighted
average floor prices of approximately $43 per pound. Sales of U3O8 into the
spot market will be at Uranium One`s discretion.
Attributable inventory levels at our 70% owned Betpak Dala JV are expected to
increase from approximately 1.2 million pounds at December 31, 2008 to
between approximately 1.8 million and 2.2 million pounds by the end of 2009.
In 2009, capital expenditure by Betpak Dala is expected to be $30 million at
South Inkai and $6 million at Akdala (on a 100% basis). For development of
its assets in Wyoming, Uranium One now expects to incur capital expenditures
of $13 million during 2009.
General and administrative expenses, excluding stock-based compensation, are
expected to be approximately $28 million for 2009; 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 now expected by the end of 2009.
The previously announced acquisition of a 50% interest in the Karatau Uranium
Mine in Kazakhstan is subject to regulatory approvals, including Kazakh
Ministry of Energy and Mineral Resources approval, and is expected to close
by the end of 2009.
Q2 2009 Financial Review
Revenues for Q2 2009 were $18.6 million, compared to $49.4 million during Q2
2008 with the decrease being due to lower sales volumes as well as a lower
average realized uranium price during the most recent quarter.
The average cash cost per pound sold in Q2 2009 was $17 per pound. This was
an increase over the $14 average cash cost per pound sold recorded in Q2 2008
due primarily to the inclusion of the new Kazakh Mineral Extraction Tax as
well as the inclusion of initial production from South Inkai, which is
currently in ramp up.
The net loss from continuing operations in Q2 2009 was $265.7 million, or
$0.57 per basic and diluted share, which includes a non-cash write-off of
$251.1 million arising from the realization of the accumulated translation
loss on Dominion, as well as a write-down of certain assets held for sale.
The net loss from continuing operations in Q2 2008 was $68.2 million, or
$0.15 per basic and diluted share.
The adjusted net loss for Q2 2009 was $12.9 million, or $0.03 per basic and
diluted share compared to adjusted net earnings for Q2 2008 of $6.6 million,
or $0.01 per basic and diluted share.
Consolidated cash and cash equivalents were $183.9 million as at June 30,
2009 compared to $203.9 million at March 31, 2009. Working capital was
$239.8 million at June 30, 2009.
FINANCIAL SUMMARY Q2 2009 Q2 2008 YTD 2009 YTD 2008
Attributable production (lbs) 815,500 435,300 1,516,400 866,800
(1)
Attributable sales (lbs) (1) 385,100 685,600 1,265,700 968,900
Average realized sales price 48 72 49 74
($ per lb) (2)
Average cash cost of 17 14 17 13
production sold ($ per lb)(2)
Revenues ($ millions) 18.6 49.4 61.5 71.9
Earnings from mine operations 6.6 32.9 22.5 49.2
($ millions)
Net loss from continuing (265.7) (68.2) (202.4) (78.5)
operations ($ millions)
Loss per share from (0.57) (0.15) (0.43) (0.17)
continuing operations - basic
and diluted ($ per share)
Earnings / (loss) from 0.8 0.3 (1.4) (104.3)
discontinued operations ($
millions)
Earnings (loss) per share 0.00 0.00 (0.00) (0.22)
from discontinued operations
- basic and diluted ($ per
share)
Net loss ($ millions) (264.9) (67.9) (203.8) (182.8)
Net loss per share - basic (0.56) (0.15) (0.43) (0.39)
and diluted ($ per share)
Adjusted net (loss) / (12.9) 6.6 (18.4) (3.7)
earnings ($ millions)(2)
Adjusted net (loss) / (0.03) 0.01 (0.04) (0.01)
earnings per share - basic ($
per share)(2)
Notes:
1. Attributable production and sales are from assets in commercial
production during the period (Akdala and South Inkai in Q2 2009 and YTD
2009 and Akdala in Q2 2008 and YTD 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 3 months ended 6 months ended
share
Jun 30, Jun 30, Jun 30, Jun 30,
2009 2008 2009 2008
$(000`s) $(000`s) $(000`s) $(000`s)
Net loss from continuing (265,726) (68,195) (202,370) (78,508)
operations
Unrealized foreign exchange loss / 1,776 (171) (67,123) (1,309)
(gain) on future income tax
liabilities
Impairment of mineral interests, 251,064 81,209 251,064 81,209
plant and equipment (net of tax of
$23,880 for the 3 and 6 months
ended June 30, 2008)
Gain on sale of available for sale 8 (6,205) 8 (5,070)
securities (net of tax of $2,397
for the 3 and 6 months ended June
30, 2008)
Adjusted net (loss) / earnings (12,878) 6,638 (18,421) (3,678)
Adjusted net (loss) / earnings per (0.03) 0.01 (0.04) (0.01)
share - basic ($)
Weighted average number of shares 469,690 468,166 469,652 467,809
(thousands) - basic
Conference Call Details
Uranium One will be hosting a conference call and webcast to discuss the
second quarter 2009 results on Monday, August 10, 2009 starting at 10:00 a.m.
(Eastern Time). Participants may join the call by dialling toll free 1-800-
731-6941 or 1-416-644-3420 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 August
10, 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 21311444. 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.
Investors are advised to refer to independent technical reports containing
detailed information with respect to the material properties of Uranium One.
These technical reports are available under the profiles of Uranium One Inc.,
UrAsia Energy Ltd., and Energy Metals Corporation at www.sedar.com. Those
technical reports provide the date of each resource or reserve estimate,
details of the key assumptions, methods and parameters used in the estimates,
details of quality and grade or quality of each resource or reserve and a
general discussion of the extent to which the estimate may be materially
affected by any known environmental, permitting, legal, taxation, socio-
political, marketing, or other relevant issues. The technical reports also
provide information with respect to data verification in the estimation.
This document uses the terms "indicated" and "inferred" resources as defined
in accordance with National Instrument 43-101 - Standards of Disclosure for
Mineral Projects. United States investors are advised that while these terms
are recognized and required by Canadian regulations, the SEC does not
recognize them. Investors are cautioned not to assume that all or any part of
the mineral deposits in these categories will ever be converted into
reserves. In addition, "inferred resources" have a great amount of
uncertainty as to their existence and economic and legal feasibility and it
cannot be assumed that all or any part of an inferred mineral resource will
be ever be upgraded to a higher category. Investors are cautioned not to
assume that all or any part of an inferred resource exists or is economically
or legally mineable. Mineral resources are not mineral reserves and do not
have demonstrated economic viability.
Scientific and technical information contained herein has been reviewed on
behalf of the Corporation by Mr. M.H.G. Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM,
MGSSA, Senior Vice President Technical Services of the Corporation, and by
Mr. Simon Gatehouse, B.Sc. (Hons) Geology, MAIG, Consulting Geologist of
Hellman & Schofield Pty. Ltd. (for South Inkai resources only), both
Qualified Persons for the purposes of NI 43-101.
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 uranium1.com..
Date: 11/08/2009 11:19:43 Produced by the JSE SENS Department.
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