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UUU
UUU
UUU - Uranium One Inc - Interim Consolidated Financial Statements for the
three and six months ended June 30, 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
Interim Consolidated Financial Statements for the three and six months ended
June 30, 2009
Interim Consolidated Balance Sheets
As at June 30, 2009 and December 31, 2008
(in United States dollars)
Jun 30, 2009 Dec 31, 2008
Notes $`000 $`000
ASSETS
Current assets
Cash and cash
Equivalents 13 183,934 176,225
Accounts and
other receivables 33,181 39,926
Current portion
of loans to joint
ventures 4.2 - 19,158
Inventories 5 46,353 17,390
Other assets 7 3,768 12,043
267,236 264,742
Non-current assets
Mineral
interests, plant
and equipment 6 1,206,915 1,285,415
Loans to joint
Ventures 4.2 25,251 14,000
Other assets 7 44,861 62,976
Assets held
for sale 3.3 65,582 -
1,342,609 1,362,391
Total assets 1,609,845 1,627,133
LIABILITIES
Current liabilities
Accounts payable and
accrued liabilities 21,629 47,423
Income taxes payable 5,771 12,639
27,400 60,062
Non-current liabilities
Long term debt 8 62,331 61,275
Convertible
Debentures 126,370 118,042
Asset retirement
Obligations 6,884 12,999
Future income
tax liabilities 302,696 375,293
Other long term
Liabilities 60,325 48,924
Assets held
for sale 3.3 14,032 -
572,638 616,533
SHAREHOLDERS` EQUITY
Share capital 9 3,524,734 3,522,824
Contributed
Surplus 10 133,654 131,602
Equity
component of
convertible
debentures 46,480 46,480
Accumulated
other comprehensive
income / (loss) 11,386 (247,708)
Deficit (2,706,447) (2,502,660)
1,009,807 950,538
Total shareholders` equity
and liabilities 1,609,845 1,627,133
Basis of presentation and principles of consolidation (note 2.1), commitments
(note 3.1 and 3.2), contingencies (note 3.1 and 3.2) and subsequent events
(note 17)
The accompanying notes form an integral part of these Interim Consolidated
Financial Statements
Uranium One Inc.
Interim Consolidated Statements of Operations
For the three and six months ended June 30, 2009 and June 30, 2008
(in United States dollars)
Three months ended Six months ended
Jun 30, 2009 Jun 30, 2008 Jun 30, 2009 Jun 30, 2008
Notes $`000 $`000 $`000 $`000
Revenues 18,557 49,390 61,526 71,907
Operating expenses (6,725) (9,487) (21,736) (12,779)
Depreciation and
Depletion (5,251) (6,960) (17,282) (9,891)
Earnings from
mine operations 6,581 32,943 22,508 49,237
General and
administrative (1) (9,059) (13,948) (18,150) (29,229)
Exploration
Expense (2,679) (5,035) (4,470) (6,715)
Impairment of
mineral interests, plant
and equipment 3.3 (251,064) (105,089) (251,064) (105,089)
Care and maintenance (4,018) - (7,594) -
Operating (loss) /
Earnings (260,239) (91,129) (258,770) (91,796)
Interest and
Other 11 (1,628) (811) (3,694) (1,822)
(Loss) / gain
on sale of available
for sale
securities (8) 8,602 (8) 7,467
Foreign
exchange (loss) /
gain 12 (1,268) 2,440 69,191 (186)
Other (192) 987 (196) 1,644
Loss from continuing
operations before
income taxes (263,335) (79,911) (193,477) (84,693)
Current income
tax expense (3,230) (17,452) (14,847) (23,911)
Future income
tax recovery 839 29,168 5,954 30,096
Loss from continuing
Operations (265,726) (68,195) (202,370) (78,508)
Earnings / (loss)
from discontinued
operations 7 806 274 (1,417) (104,282)
Net loss (264,920) (67,921) (203,787) (182,790)
(1) Stock option and
restricted share
expense (non-cash)
included in
general and
administrative 10 2,298 4,483 3,764 10,597
Loss per share from continuing operation
Basic and diluted (0.57) (0.15) (0.43) (0.17)
Earnings / (loss) earnings per share from discontinued operations
Basic and diluted 0.00 0.00 (0.00) (0.22)
Net loss per share
Basic and diluted (0.56) (0.15) (0.43) (0.39)
Weighted average number of shares (in thousands)
Basic and
diluted 14 469,690 468,166 469,652 467,809
The accompanying notes form an integral part of these Interim Consolidated
Financial Statements
Uranium One Inc.
Interim Consolidated Statements of Changes in Equity
As at June 30, 2009 and December 31, 2008
(in United States dollars)
Share capital Contributed Equity
$`000 surplus component of
$`000 convertible
debentures
$`000
Balance as at 3,496,884 134,387 46,480
January 1, 2008
Net loss for - - -
the year
Stock options - 15,423 -
and restricted
shares vested
Exercise of 15,791 (11,460) -
warrants
Exercise of 10,149 (6,748) -
stock options
and 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 Gold
One1
Fair value - - -
adjustments on
available for
sale securities
and realized
loss on sale
Balance as at 3,522,824 131,602 46,480
December 31,
2008
Net earnings - - -
for the period
Stock options - 3,764 -
and restricted
shares vested
Exercise of 1,910 (1,712) -
stock options
and restricted
shares
Unrealized gain - - -
recognized on
translation of
self-sustaining
foreign
operations
Realized loss - - -
on sale of Gold
One1
Fair value - - -
adjustments on
available for
sale securities
and realized
gain on sale
Realized loss - - -
on sale of
Uranium One
Africa (note
3.3)
Balance as at 3,524,734 133,654 46,480
June 30, 2009
Accumulated Deficit Total
other comprehen- $`000 $`000
sive income /
(loss)
$`000
Balance as at 51,967 (46,813) 3,682,905
January 1, 2008
Net loss for the - (2,455,847) (2,455,847)
year
Stock options - - 15,423
and restricted
shares vested
Exercise of - - 4,331
warrants
Exercise of - - 3,401
stock options
and restricted
shares
Unrealized loss (282,170) - (282,170)
recognized on
translation of
self-sustaining
foreign
operations
Unrealized loss (27,480) - (27,480)
recognized on
translation of
self-sustaining
foreign
discontinued
operations
Realized loss on 10,163 - 10,163
sale of Gold
One1
Fair value (188) - (188)
adjustments on
available for
sale securities
and realized
loss on sale
Balance as at (247,708) (2,502,660) 950,538
December 31,
2008
Net earnings for - (203,787) (203,787)
the period
Stock options - - 3,764
and restricted
shares vested
Exercise of - - 198
stock options
and restricted
shares
Unrealized gain 12,891 - 12,891
recognized on
translation of
self-sustaining
foreign
operations
Realized loss on 11,383 - 11,383
sale of Gold
One1
Fair value 307 - 307
adjustments on
available for
sale securities
and realized
gain on sale
Realized loss on 234,513 - 234,513
sale of Uranium
One Africa (note
3.3)
Balance as at 11,386 (2,706,447) 1,009,807
June 30, 2009
The accompanying notes form an integral part of these Interim Consolidated
Financial Statements
(1) Gold One International Limited "Gold One", (formerly Aflease Gold)
Uranium One Inc.
Interim Consolidated Statements of Comprehensive Income / (Loss)
For the three and six months ended June 30, 2009 and June 30, 2008
(in United States dollars)
Three months ended Six months ended
Notes Jun 30, Jun 30, Jun 30, Jun 30,
2009 2008 2009 2008
$`000 $`000 $`000 $`000
Net loss (264,920) (67,921) (203,787) (182,790)
Unrealized gain 12,084 64,946 12,891 (164,640)
/ (loss)
recognized on
translation of
self-sustaining
foreign
operations
Unrealized gain - 3,341 - (26,070)
/ (loss)
recognized on
translation of
self-sustaining
foreign
discontinued
operations
Realized loss 543 9,920 11,383 9,920
on sale of Gold
One
Realized loss 3.3 234,513 - 234,513 -
on sale of
Uranium One
Africa
Fair value 184 102 307 (953)
adjustments on
available for
sale securities
Realized loss / - 14 - (176)
(gain) on sale
of available
for sale
securities, net
of tax
Comprehensive (17,596) 10,402 55,307 (364,709)
income / (loss)
Interim Consolidated Statements of Accumulated Other Income / (Loss)
As at June 30, 2009 and December 31, 2008
(in United States dollars)
Jun 30, 2009 Dec 31, 2008
$`000 $`000
Accumulated other comprehensive (loss) (247,708) 51,967
/ income at January 1
Other comprehensive income / (loss) 259,094 (299,675)
for the period
11,386 (247,708)
Components of accumulated other
comprehensive loss at the end of the
period:
Unrealized foreign exchange adjustment 12,770 (234,634)
- continuing operations
Unrealized foreign exchange adjustment (1,691) (13,074)
- discontinued operations
Available for sale marketable 307 -
securities and investments
11,386 (247,708)
The accompanying notes form an integral part of these Interim Consolidated
Financial Statements
Uranium One Inc.
Interim Consolidated Statements of Cash Flows
For the three and six months ended June 30, 2009 and June 30, 2008
(in United States dollars)
Three months ended Six months ended
Jun 30, Jun 30, Jun 30, Jun 30,
2009 2008 2009 2008
Notes $`000 $`000 $`000 $`000
Net earnings / (265,726) (68,195) (202,370) (78,508)
(loss) from
continuing
operations
Items not
affecting cash:
- Depreciation 5,251 6,960 17,282 9,891
and depletion
- Impairment of 251,064 105,089 251,064 105,089
mineral
interests,
plant and
equipment
- Stock option 10 2,298 4,483 3,764 10,597
and restricted
share expense
- Interest 1,242 659 3,679 4,350
accrued on
loans and
debentures
- Unrealized 12 2,802 (1,431) (68,121) (3,644)
foreign
exchange (gain)
/ loss
- Future income (839) (29,168) (5,954) (30,096)
tax recovery
- Loss / (gain) 8 (8,602) 8 (7,467)
on sale of
available for
sale securities
- Other 190 298 1,529 194
Movement in non- 13 (15,589) (43,723) (7,000) (4,577)
cash working
capital
Cash flows from (19,299) (33,630) (6,119) 5,829
operating
activities
Acquisition of (17,523) (68,420) (27,706) (122,437)
mineral
interests,
plant and
equipment
Advance cash (1,864) - (3,166) -
payment for
other assets
Cash advance (2,656) (5,385)
for sulphuric
acid plant
investment
Proceeds on 1,699 - 14,698 -
sale of Gold
One
Proceeds on 1,493 - 5,172 -
sale of mineral
interests,
plant and
equipment
Uranium 8,361 - 5,954 -
transactions
Proceeds on - 22,550 - 24,927
sale of
available for
sale securities
Cash proceeds 3,500 4,667 8,167 14,434
from joint
ventures
Other - (151) - (953)
Cash flows used (6,990) (41,354) (2,266) (84,029)
in investing
activities
Cash flows from - 43,456 - 43,456
investing
activities of
discontinued
operations
Common shares 190 2,645 190 4,788
issued, net of
issue costs
Financing fees - (5,666) - (5,666)
Loans received 4.1 - 6,000 12,000 12,000
by Kyzylkum
UPC loan 1,094 - 1,094 -
received
Cash flows from 1,284 2,979 13,284 11,122
financing
activities
Effects of 5,029 1,471 2,810 (2,822)
exchange rate
changes on cash
and cash
equivalents
Net (decrease) (19,976) (27,078) 7,709 (26,444)
/ increase in
cash and cash
equivalents
from continuing
operations
Cash and cash 203,910 160,226 176,225 159,592
equivalents at
the beginning
of the period
Cash and cash 183,934 133,148 183,934 133,148
equivalents at
the end of the
period
Cash flows of discontinued operations
Cash flows from operating - - - (6,941)
activities
Cash flows used in - - - (5,351)
investing activities
Cash flows used in - - - (13,741)
financing activities
Supplemental cash flow information (note 13)
The accompanying notes form an integral part of these Interim Consolidated
Financial Statements
Uranium One Inc.
Notes to the Interim Consolidated Financial Statements
As at June 30, 2009 and December 31, 2008
(in United States dollars)
1 NATURE OF OPERATIONS
Uranium One Inc. ("Uranium One"), its subsidiaries and joint ventures
(collectively, the "Corporation") is a Canadian 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, the United States, Australia and South
Africa.
Through the Betpak Dala joint venture, Uranium One owns a 70% interest in the
Akdala and South Inkai uranium mines in Kazakhstan. The Corporation holds a
30% interest in the Kyzylkum joint venture, which owns the Kharasan Project in
Kazakhstan. In the United States, the Corporation owns projects in the Powder
River and Great Divide basins in Wyoming. The Corporation owns a 51% interest
in the Honeymoon Uranium Project in Australia. The Corporation owns, either
directly or through joint ventures, a large portfolio of uranium exploration
properties in the western United States, South Australia, South Africa, and
Canada.
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, 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, 2008, 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 financial statements include the accounts of Uranium One, 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 June
30, 2009:
Operating mine:
Entity Mineral Location Ownership Status
property/Operation
Betpak Akdala Mine Kazakhstan 70% Proportionately
Dala LLP consolidated
Betpak South Inkai Kazakhstan 70% Proportionately
Dala LLP Mine(1) consolidated
Advanced development projects:
Entity Mineral Location Ownership Status
property/Operation
Kyzylkum Kharasan Project Kazakhstan 30% Proportionately
LLP consolidated
The Corporation is also developing the following mineral properties:
Entity Mineral Location Ownership Status
property/Operation
Energy United States United 100% Consolidated
Metals Corp development States
(US) projects
Honeymoon Honeymoon Project Australia 51% Proportionately
Uranium consolidated
Project
Joint
Venture
(1) South Inkai commenced commercial operations on January 1, 2009
2.2 Adoption of new standards and recent accounting pronouncements
Goodwill and intangible assets
Effective January 1, 2009, the Corporation adopted the new Canadian Institute
of Chartered Accountants ("CICA") Section 3064 - "Goodwill and Intangible
Assets", which aligns Canadian GAAP for goodwill and intangible assets with
IFRS. The new standard provides more comprehensive guidance on intangible
assets, in particular for internally developed intangible assets. CICA
Standards concerning goodwill are unchanged from the standards included in
CICA Section 3062. On adoption of CICA Section 3064, Emerging Issues
Committee Abstract 27 - "Revenues and expenditures during the pre-operating
period" no longer applies to the Corporation. The adoption of this standard
did not have a material impact on the Corporation`s consolidated financial
statements.
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 successful conversion.
Business combinations
CICA Section 1582 - "Business Combinations", which replaces CICA Section 1581
- "Business Combinations", establishes standards for the accounting for a
business combination. It is the Canadian GAAP equivalent to International
Financial Reporting Standard IFRS 3, Business Combinations. This standard is
effective for the Corporation for interim and annual financial statements
beginning on January 1, 2011. Early adoption is permitted. The Corporation
has not yet determined the impact of the adoption of this standard on its
consolidated financial statements.
Consolidated financial statements and non-controlling interests
CICA Section 1601 - "Consolidated Financial Statements" and Section 1602 -
"Non-controlling Interests" replaces CICA Section 1600. CICA Section 1601
establishes standards for the preparation of consolidated financial
statements. CICA Section 1602 establishes standards for accounting for a non-
controlling interest in a subsidiary in consolidated financial statements
subsequent to a business combination. CICA Section 1602 is equivalent to the
corresponding provisions of International Financial Reporting Standard IAS 27,
Consolidated and Separate Financial Statements. These standards are effective
for the Corporation for interim and annual financial statements beginning on
January 1, 2011. Early adoption is permitted. The Corporation has not yet
determined the impact of the adoption of these standards on its consolidated
financial statements.
Credit risk and fair value of financial assets and financial liabilities
In January 2009, the CICA issued Emerging Issues ("EIC") Abstract 173 -
"Credit Risk and the Fair Value of Financial Assets and Financial Liabilities"
("EIC-173"). EIC-173 provides guidance on how to take into account credit
risk of an entity and counterparty when determining the fair value of
financial assets and financial liabilities, including derivative instruments.
EIC-173 is applicable for the Corporation`s interim and annual consolidated
financial statements for its fiscal year ending December 31, 2009, with
retrospective application. The adoption of EIC-173 did not result in a
material impact on the Corporation`s consolidated financial statements.
Mining exploration costs
In March 2009, the CICA issued EIC Abstract 174 - "Mining Exploration Costs"
("EIC-174") which supercedes EIC Abstract 126 - Accounting by Mining
Enterprises for Exploration Costs ("EIC-126"), to provide additional guidance
for mining exploration enterprises on the accounting for capitalization of
exploration costs and when an impairment test of these costs is required. EIC-
174 is applicable for the Corporation`s interim and annual consolidated
financial statements for its fiscal year ending December 31, 2009, with
retrospective application. The adoption of EIC-174 did not result in a
material impact on the Corporation`s consolidated financial statements.
3 ACQUISITIONS AND DISPOSALS
3.1 Acquistion of Karatau Uranium Mine
Uranium One announced on June 15, 2009 the signing of a definitive purchase
agreement to acquire a 50% joint venture interest in the Karatau Uranium Mine
("Karatau") in Kazakhstan from JSC Atomredmetzoloto ("ARMZ"), the Russian
state-owned uranium mining company. The other 50% joint venture interest in
Karatau is held by JSC NAC Kazatomprom, the Kazakh-stated owned uranium mining
company.
The purchase price will be paid by way of the issuance of 117 million common
shares of Uranium One and a cash payment of $90 million (or equivalent
promissory note). The purchase agreement also provides for contingent payments
to ARMZ of up to $60 million, payable in three equal tranches over the period
between 2010 and 2012 subject to certain post-closing tax related adjustments.
Upon closing of the Karatau acquisition (after giving effect to the C$270
million investment of the Japanese consortium), ARMZ will hold an indirect
16.6% interest in Uranium One. ARMZ has agreed to a standstill covenant under
which it may not (subject to certain exceptions), without Uranium One`s prior
consent, for a period of at least five years from closing acquire more than
19.95% of Uranium One`s outstanding common shares.
The acquisition is subject to completion of a legal due diligence review by
ARMZ. The acquisition is not subject to technical or financial due diligence
conditions. Closing is also subject to the approval of the Kazakh regulatory
authorities and to certain other regulatory and stock exchange regulatory
approvals, as well as other usual and customary closing conditions. Uranium
One expects to close the acquisition by the end of Q4, 2009.
3.2 Acquisition of Christensen Ranch and Irigaray
The Corporation entered into a definitive agreement on August 7, 2009 to
acquire 100% of the MALCO Joint Venture ("MALCO") from wholly-owned
subsidiaries of AREVA and Electricite de France for $35 million in cash. The
assets of MALCO include the licensed and permitted Irigaray ISR central
processing plant, the Christensen Ranch satellite ISR facility and associated
U3O8 resources located in the Powder River Basin of Wyoming.
The acquisition is subject to regulatory approvals including U.S. Nuclear
Regulatory Commission, Wyoming Department of Environmental Quality, Texas
Commission on Environmental Quality and the Committee on Foreign Investment in
the United States. Closing is also subject to a financing condition which the
Corporation expects will be satisfied by the completion of the private
placement to the Japanese consortium.
3.3 Assets held for sale
Uranium One Africa
The Corporation committed to a plan to sell Uranium One Africa Limited,
("Uranium One Africa"), a fully owned subsidiary of the Corporation. Uranium
One Africa owns the Dominion Uranium Project, which the Corporation has placed
on care and maintenance during the third quarter of 2008.
The Corporation estimates it will receive cash proceeds of $38.5 million, net
of costs on the sale. The net carrying value of the investment of $45.0
million was impaired to the estimated proceeds of $38.5 million, resulting in
an impairment of $6.5 million. The Corporation had an accumulated unrealized
translation loss relating to Uranium One Africa of $234.5 million, which was
released through the statement of operations as a result of the
reclassification of the Corporation`s investment in Uranium One Africa to
assets held for sale.
Other properties
The Corporation committed to a plan to sell some of its non-producing
properties during the quarter and have classified them as held for sale. The
fair value of these assets was determined to be $13.1 million and an
impairment of $10.0 million was recognized.
June 30, 2009 Dominion Other Total
properties
$`000 $`000 $`000
Total assets 51,121 14,461 65,582
Total (12,621) (1,411) (14,032)
liabilities
Net carrying 38,500 13,050 51,550
value
Net carrying 45,028 23,073 68,101
value before
impairment
Accumulated 234,513 - 234,513
translation
losses
Carrying value 279,541 23,073 302,614
as at June 30,
2009
Impairment (241,041) (10,023) (251,064)
Estimated 38,500 13,050 51,550
recoverable
amount, net of
costs
4 JOINT VENTURES
4.1 Proportionate interests in joint ventures
The Corporation owns the following interests in joint ventures:
Betpak Dala 70%
Kyzylkum 30%
Honeymoon 51%
Australia 51%
Exploration
The Corporation`s proportionate share of the assets and liabilities of the
joint ventures are as follows:
As at June Betpak Kyzylkum Honeymoon Australia Total
30, 2009 Dala explorati
on
$`000 $`000 $`000 $`000 $`000
Cash 7,100 875 2,307 344 10,626
Other 71,225 490 465 29 72,209
current
assets
Mineral 660,501 202,794 34,622 16,498 914,415
interests,
plant and
equipment
Other 2,653 1,538 24 - 4,215
assets
Current (11,785) (4,267) (1,505) (79) (17,636)
liabilities
Long term (44) (47,544) (21) - (47,609)
debt (1)
Other (1,554) (500) - - (2,054)
Future (213,944) (57,827) (3,498) - (275,269)
income
taxes
Asset (3,645) (101) (270) - (4,016)
retirement
obligation
Net Assets 510,507 95,458 32,124 16,792 654,881
In addition to the $35 million loan (note 4.2) from the Corporation, Kyzylkum
negotiated unsecured bank loan facilities totaling $160 million in prior
periods. 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 $90 million, was obtained from Citibank. These facilities were
fully drawn down as at June 30, 2009, and the Corporation`s share of these
facilities is $48 million.
As at Betpak Dala Kyzylkum Honeymoo Australia Total
December 31, n exploration
2008
$`000 $`000 $`000 $`000 $`000
Cash 725 92 - - 817
Other 8,641 656 16 - 9,313
current
assets
Mineral 700,006 193,019 26,017 12,603 931,645
interests,
plant and
equipment
Other assets 703 4,005 - - 4,708
Current (18,098) (3,084) (653) - (21,835)
liabilities
Long term (54) (35,453) (11) - (35,518)
debt
Other long (1,582) (556) - - (2,138)
term
liabilities
Future (270,411) (72,019) (3,271) - (345,701)
income taxes
Asset (4,609) (117) (223) - (4,949)
retirement
obligation
Net Assets 415,321 86,543 21,875 12,603 536,342
The Corporation`s proportionate share of revenue, expenses, net earnings /
(loss) and cash flows for the periods ended June 30, 2009 and 2008 are as
follows:
Three months ended June 30, 2009
Betpak Kyzylku Honeymo Australian Total
Dala m on exploration
$`000 $`000 $`000 $`000 $`000
Revenue 18,557 - - - 18,557
Expenses (11,886) 263 21 (292) (11,894)
and other
income
Foreign (2,249) (641) - - (2,890)
exchange
loss
Earnings / 4,422 (378) 21 (292) 3,773
(loss)
before
income
taxes
Current (3,022) (6) - - (3,028)
income tax
expense
Future (242) - - - (242)
income tax
expense
Earnings / 1,158 (384) 21 (292) 503
(loss)
Cash flows (14,038) 449 80 (173) (13,682)
(used in) /
from
operating
activities
Cash flows (4,364) (5,209) (1,604) - (11,177)
used in
investing
activities
Cash flows - - - - -
from
financing
activities
Net (18,402) (4,760) (1,524) (173) (24,859)
(decrease)
/ increase
in cash
Three months ended June 30, 2008
Betpak Dala Kyzylkum Total
$`000 $`000 $`000
Revenue 49,390 - 49,390
Expenses and (16,877) 57 (16,820)
other income
Foreign (3) (4) (7)
exchange loss
Earnings / 32,510 53 32,563
(loss) before
income taxes
Current (15,230) (11) (15,241)
income tax
expense
Future income 2,549 - 2,549
tax recovery
Earnings / 19,829 42 19,871
(loss)
Cash flows 12,076 243 12,319
from / (used
in) operating
activities
Cash flows (14,391) (158) (14,549)
used in
investing
activities
Cash flows 85 4,008 4,093
(used in) /
from
financing
activities
Net increase (2,230) 4,093 1,863
/ (decrease)
in cash
Six months ended June 30, 2009
Betpak Kyzylkum Honeymo Austra Total
Dala on lian
explor
ation
$`000 $`000 $`000 $`000 $`000
Revenue 61,526 - - - 61,526
Expenses (38,613) (9) 30 (481) (39,073)
and other
income
Foreign 56,955 12,534 - - 69,489
exchange
gain
Earnings / 79,868 12,525 30 (481) 91,942
(loss)
before
income
taxes
Current (12,725) (9) - - (12,734)
income tax
expense
Future 3,004 - - - 3,004
income tax
recovery
Earnings / 70,147 12,516 30 (481) 82,212
(loss)
Cash flows 11,989 374 200 (226) 12,337
from /
(used in)
operating
activities
Cash flows (5,634) (11,604) (2,602) - (19,840)
used in
investing
activities
Cash flows - 12,000 - - 12,000
from
financing
activities
Net 6,355 770 (2,402) (226) 4,497
increase /
(decrease)
in cash
Six months ended June 30, 2008
Betpak Dala Kyzylkum Total
$`000 $`000 $`000
Revenue 71,907 - 71,907
Expenses and (21,826) 11 (21,815)
other income
Foreign (121) (11) (132)
exchange loss
Earnings / 49,960 - 49,960
(loss) before
income taxes
Current (21,572) (44) (21,616)
income tax
expense
Future income 3,649 - 3,649
tax recovery
Earnings / 32,037 (44) 31,993
(loss)
Cash flows 46,893 (65) 46,828
from / (used
in) operating
activities
Cash flows (26,789) (4,306) (31,095)
used in
investing
activities
Cash flows (11,796) 8,152 (3,644)
(used in) /
from
financing
activities
Net increase 8,308 3,781 12,089
/ (decrease)
in cash
4.2 Loans to joint ventures
Jun 30, Dec 31,
2009 2008
$`000 $`000
Kyzylkum
Current portion - 19,158
Long term portion 25,251 14,000
Total 25,251 33,158
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 initial funding.
Jun 30, Dec 31,
2009 2008
$`000 $`000
Balance at January 1 46,666 73,333
Repaid during the period (11,666) (26,667)
35,000 46,666
Interest accrued 1,073 702
36,073 47,368
Less: elimination of proportionate (10,822) (14,210)
share - 30%
25,251 33,158
Less: current portion - (19,158)
Long term portion 25,251 14,000
The loans to Kyzylkum are unsecured.
5 INVENTORIES
Jun 30, Dec 31,
2009 2008
$`000 $`000
Finished uranium concentrates 23,281 5,401
Solutions and concentrates in process 15,707 2,584
Product inventory 38,988 7,985
Materials and supplies 7,365 9,405
46,353 17,390
All operating expenses and depreciation and depletion are expensed through
inventory.
6 MINERAL INTERESTS, PLANT AND EQUIPMENT
June 30, 2009 Accumulated Net
carrying
Cost amortization amount
$`000 $`000 $`000
Mineral interests 1,038,9 (66,351) 972,563
14
Plant and equipment 258,434 (24,082) 234,352
1,297,3 (90,433) 1,206,915
48
December 31, 2008 Accumulated Net
carrying
Cost amortization amount
$`000 $`000 $`000
Mineral interests 1,035,043 (46,850) 988,193
Plant and equipment 312,360 (15,138) 297,222
1,347,403 (61,988) 1,285,415
A summary by property of the net book value is as follows:
June 30, Mineral interests
2009
Depleta Non- Total
ble depletable
Country $`000 $`000 $`000
Akdala Mine Kazakhs 85,570 74,358 159,928
tan
South Inkai Kazakhs 203,394 181,068 384,462
Mine tan
Kharasan Kazakhs - 144,956 144,956
Project tan
United United - 92,434 92,434
States States
development
projects
United United - 121,019 121,019
States States
exploration
projects
United United - 39,215 39,215
States States
conventiona
l mining
projects
Honeymoon Austral - 28,812 28,812
Project ia
Corporate - 1,737 1,737
and other
Total 288,964 683,599 972,563
June 30, 2009
Plant and equipment Total
Country $`000 $`000
Akdala Mine Kazakhstan 26,544 186,472
South Inkai Mine Kazakhstan 89,179 473,641
Kharasan Project Kazakhstan 57,838 202,794
United States United States 22,162 114,596
development
projects
United States United States - 121,019
exploration
projects
United States United States 1,532 40,747
conventional
mining projects
Honeymoon Australia 22,308 51,120
Project
Corporate and 14,789 16,526
other
Total 234,352 1,206,915
December 31, 2008 Mineral interests
Non-
Depletable depletable Total
Country $`000 $`000 $`000
Akdala Mine Kazakhstan 92,739 74,358 167,097
South Inkai Kazakhstan - 396,963 396,963
Mine
Kharasan Kazakhstan - 144,722 144,722
Project
Dominion South - - -
Project Africa
United United - 90,255 90,255
States States
development
projects
United United - 122,586 122,586
States States
exploration
projects
Hobson United - - -
Facility and States
La Palangana
Project
United United - 39,215 39,215
States States
conventional
mining
projects
Honeymoon Australia - 25,652 25,652
Project
Corporate - 1,703 1,703
and other
Total 92,739 895,454 988,193
December 31, 2008
Plant and Total
equipment
$`000 $`000
Akdala Mine Akdala Mine 28,622 195,719
South Inkai South Inkai 107,017 503,980
Mine Mine
Kharasan Kharasan 48,296 193,018
Project Project
Dominion Dominion 44,586 44,586
Project Project
United States United States 15,589 105,844
development development
projects projects
United States United States - 122,586
exploration exploration
projects projects
Hobson Hobson 22,026 22,026
Facility and Facility and
La Palangana La Palangana
Project Project
United States United States 1,497 40,712
conventional conventional
mining mining
projects projects
Honeymoon Honeymoon 12,967 38,620
Project Project
Corporate and Corporate and 16,622 18,324
other other
Total Total 297,222 1,285,415
7 OTHER ASSETS
Jun 30, Dec 31,
2009 2008
$`000 $`000
Current
Purchased uranium concentrates 2,562 9,743
Future income tax assets 1,206 1,206
Reclamation bond payment on behalf - 1,094
of UPC joint venture
3,768 12,043
Non-current
Asset retirement fund 13,561 19,939
Advances for future services - 10,054
Borrowed uranium concentrates 10,400 8,621
Advances for investment in sulphuric 11,344 5,959
acid plant
Advances for plant and equipment 2,790 3,938
Long term deposits and guarantees 318 2,489
Available for sale securities 1,055 593
Discontinued operations 1,167 9,024
Other 4,226 2,359
44,861 62,976
Borrowed uranium concentrates
The Corporation entered into a uranium concentrates borrowing agreement to
mitigate the risk of delivery delays, enabling the Corporation to meet its
contractual obligations in terms of current uranium sales contracts. The
asset represents the borrowed uranium concentrates, which are held at a
conversion facility in the Corporation`s account. The asset is recorded at
its fair value. A corresponding financial liability, which was classified as
held for trading, is also carried at fair value in other long-term payables.
Purchased uranium concentrates
The Corporation entered into uranium concentrates purchasing agreements to
ensure that it could meet its short-term contractual obligations in terms of
uranium sales contracts for Dominion. The asset represents the balance of the
purchased uranium concentrates, which are held at a conversion facility in the
Corporation`s account. The asset is recorded at its fair value.
Discontinued operations
During the three and six months ended June 30, 2009, the Corporation sold 7.7
million and 162.6 million Gold One shares for proceeds of $1.8 million and
$17.1 million, realizing a net profit of $0.8 million and a net loss of $1.4
million, respectively. The Corporation`s shareholding in Gold One was 4% on
June 30, 2009.
8 LONG TERM DEBT
Credit facility Jun 30, Dec 31,
2009 2008
$`000 $`000
Opening balance 61,275 -
Drawn down during the period - 65,000
Financing fees deferred - (5,151)
Financing fees amortized 1,134 1,275
Interest paid (652) (386)
Interest accrued 574 537
Closing balance 62,331 61,275
The debt can be repaid any time before June 27, 2010. Letters of credit in
the amount of $11.1 million have been issued under the credit facility.
9 SHARE CAPITAL
Number of Value of
Issued and outstanding common shares shares shares
$`000
Common shares on January 1, 2008 467,173,4 3,496,884
23
Exercise of warrants 1,190,000 15,791
Exercise of stock options 1,043,016 7,358
Exercise of restricted shares 206,517 2,791
Common shares on December 31, 2008 469,612,9 3,522,824
56
Exercise of stock options 135,981 1,788
Exercise of restricted shares 24,241 122
Issued and outstanding common shares 469,773,1 3,524,734
at June 30, 2009 78
On February 9, 2009, Uranium One entered into a subscription agreement with a
corporation formed by The Tokyo Electric Power Company, Incorporated
("TEPCO"), Toshiba Corporation, and The Japan Bank for International
Cooperation ("JBIC") providing for the private placement of an aggregate of
117,000,000 common shares of Uranium One, for gross proceeds of approximately
C$270 million.
The private placement issue price of C$2.30 per share represented a 15%
premium to the 20-day volume weighted average price of Uranium One common
shares on the Toronto Stock Exchange prior to the announcement of the
transaction.
Pursuant to the acquisition of the Karatau Uranium Mine from ARMZ (note 3.1),
117 million common shares of Uranium One will be issued as part of the
purchase price.
Upon closing of the Karatau Uranium Mine acquisition and the private
placement, both ARMZ and the Japanese consortium will have a 16.6% interest in
Uranium One.
10 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 December 31, 25,372 3,119 105,896 134,387
2007
Stock options issued - - 14,145 14,145
and vested
Stock options - - (3,957) (3,957)
exercised
Restricted shares - 1,278 - 1,278
issued and vested
Restricted shares - (2,791) - (2,791)
exercised
Warrants exercised (11,460) - - (11,460)
As at December 31, 13,912 1,606 116,084 131,602
2008
Stock options issued - - 3,389 3,389
and vested
Stock options - - (1,590) (1,590)
exercised
Restricted shares - 375 - 375
issued and vested
Restricted shares - (122) - (122)
exercised
As at June 30, 2009 13,912 1,859 117,883 133,654
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:
June 30, Dec 31,
2009 2008
Risk free interest rate 1.70% - 2.52% -
2.57% 3.60%
Expected dividend yield 0% 0%
Expected volatility of the Uranium 98% - 103% 66% - 120%
One`s share price
Expected life 5 years 5 years
Stock options
The following is a summary of options granted under the stock-based
compensation plan:
Weighted
Number of average
options exercise
price
Cdn $
Outstanding options as at January 20,824,788 8.55
1, 2008
Granted options 2,559,948 3.56
Exercised options (1,043,016) 3.74
Forfeitures of stock options (6,483,203) 9.12
Outstanding options as at December 15,858,517 7.82
31, 2008
Granted options 6,155,700 2.22
Exercised options (135,981) 1.70
Forfeitures of stock options (2,269,886) 8.00
Outstanding options as at June 30, 19,608,350 6.09
2009
The stock option compensation expense for the three and six month periods
ended June 30, 2009 was $2.2 million and $3.4 million respectively, and for
the three and six month periods ended June 30, 2008 it was $4.0 million and
$9.8 million. As at June 30, 2009, the aggregate unexpensed fair value of
unvested stock options granted amounted to $9.2 million. The fair value of
options granted during the six month period amounts to $8.0 million ($1.29 per
option).
The following table summarizes stock options outstanding at June 30, 2009:
Options outstanding
Range of Number outstanding as Weighted Weighted
exercise at June 30, 2009 average average
prices remaining exercise
life price
Cdn $ (years) Cdn $
0.78 to 2.74 6,845,232 4.32 2.19
2.75 to 4.76 3,976,286 3.59 3.86
4.77 to 7.79 2,252,988 2.84 6.90
7.80 to 9.90 3,069,950 6.13 8.44
9.91 to 1,827,175 3.15 12.13
12.93
12.94 to 620,802 2.87 13.90
15.63
15.64 to 1,015,917 2.88 16.52
16.59
19,608,350 4.06 6.09
Options exercisable
Range of Number Weighted average Weighted average
exercise exercisable remaining life exercise price
prices as at June
30, 2009
Cdn $ (years) Cdn $
0.78 to 2.74 669,904 0.79 2.18
2.75 to 4.76 2,772,587 3.52 3.94
4.77 to 7.79 2,189,384 2.81 6.95
7.80 to 9.90 3,030,786 6.17 8.44
9.91 to 12.93 1,527,216 3.2 12.13
12.94 to 15.63 393,474 2.95 13.96
15.64 to 16.59 683,153 2.88 16.51
11,266,504 3.83 7.85
Restricted share rights
The following is a summary of Uranium One`s restricted shares issued under the
Restricted Share Plan:
Number of
restricted
shares
Balance at January 1, 2008 295,532
Granted 609,000
Exercised during the year (206,517)
Expired (74,520)
Balance at December 31, 2008 623,495
Exercised during the period (24,241)
Expired (36,000)
Balance at June 30, 2009 563,254
Restricted share rights will not expire while the rights holder is an employee
of the Corporation.
The restricted share rights expense for the three and six month periods ended
June 30, 2009 was $0.1 million and $0.4 million respectively, and for the
three and six month periods ended June 30, 2008 was $0.4 million and $0.8
million. As at June 30, 2009 the aggregate unexpensed fair value of unvested
restricted share rights granted amounted to $1.0 million.
Contingently issuable shares
The Corporation assumed all of the obligations of Energy Metals Corporation
Inc. and its subsidiaries arising under certain option and joint venture
agreements with third parties. Uranium One has reserved a total of 407,100
common shares for issuance pursuant to the assumed obligations under
contingent share rights agreements.
11 INTEREST AND OTHER
3 months ended 6 months ended
Jun 30, Jun 30, Jun 30, Jun 30,
2009 2008 2009 2008
$`000 $`000 $`000 $`000
Interest income 1,652 3,129 2,626 5,889
Interest paid (344) (18) (693) (18)
Convertible (2,123) (3,922) (4,066) (7,693)
debenture interest
Credit facility (738) - (1,396) -
charges
Interest and costs (75) - (165) -
incurred on uranium
concentrates loan
(1,628) (811) (3,694) (1,822)
12 FOREIGN EXCHANGE (LOSS) / GAIN
A summary of the foreign exchange (loss) / gain by item is as follows:
3 months ended 6 months ended
Jun 30, Jun 30, Jun 30, Jun 30,
2009 2008 2009 2008
$`000 $`000 $`000 $`000
Unrealized foreign (1,776) 171 67,123 1,309
exchange (loss) /
gain on future
income tax
liabilities
Unrealized foreign (1,026) 1,260 998 2,335
exchange (loss) /
gain on other items
Foreign exchange 1,534 1,009 1,070 (3,830)
gain / (loss) on
cash and other items
(1,268) 2,440 69,191 (186)
The National bank of Kazakhstan announced on February 4, 2009 that it has
ceased to maintain the Kazakhstan tenge ("tenge") within the previous range of
117-123 tenge to the US dollar and suggested the rate be set within a range of
145-155 tenge to the US dollar. The tenge closed at 150.4 tenge to the US
dollar on June 30, 2009. The resulting devaluation affected the translated
values of monetary assets and liabilities, including the $67.1 million gain on
future income tax liabilities.
13 CASH FLOW INFORMATION
3 months ended 6 months ended
Jun 30, Jun 30, Jun 30, 2009 Jun 30, 2008
2009 2008
$`000 $`000 $`000 $`000
Changes in non-cash
working capital
excluding business
combinations:
(Increase) / (4,756) (33,650) 19,394 1,801
decrease in accounts
and other
receivables
(Increase) / - (437) - 17,413
decrease in prepaid
expenses and other
(Increase) / (7,007) 1,594 (9,342) (4,376)
decrease in
inventories
Increase / 2,239 (8,029) (12,817) (22,195)
(decrease) in
accounts payable and
accrued liabilities
(Decrease) / (6,065) (3,201) (4,235) 2,780
increase in income
taxes payable
(15,589) (43,723) (7,000) (4,577)
Supplemental cash
flow information
Cash interest paid 3,102 3,267 3,500 3,267
Cash tax paid 9,295 20,662 19,082 28,660
Cash equivalents
Money market 96,923 72,002 96,923 72,002
instruments,
including cashable
guaranteed
investment
certificates, bearer
deposit notes and
commercial paper
14 BASIC AND DILUTED WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
3 months ended 6 months ended
June June 30, June 30, June 30,
30, 2008 2009 2008
2009
`000 `000 `000 `000
Basic weighted- 469,690 468,166 469,652 467,809
average number of
shares outstanding
Effect of dilutive
securities:
-stock options - - - -
-warrants - - - -
Diluted weighted- 469,690 468,166 469,652 467,809
average number of
shares outstanding
For the three and six months ended June 30, 2009 and the three and six months
ended June 30, 2008, 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.
15 FINANCIAL INSTRUMENTS
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 section describes the type of significant 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 Corporation is primarily exposed to foreign currency risk through the
following assets and liabilities denominated in currencies other than US
dollars:
Cash and Accounts Accounts Convertib Mineral Future
cash receivabl payable and le interes income
equiv- e accrued debenture ts tax
alents liabilities s plant liabiliti
and es
equipme
nt
(1)
June 30,
2009
$`000 $`000 $`000 $`000 $`000 $`000
Canadian 2,250 1,951 3,759 126,370 - -
dollar
Kazakhstan 7,276 30,859 12,227 - - 272,303
tenge
Australian 38,250 1,022 2,631 - 51,168 3,720
dollar
47,776 33,832 18,617 126,370 51,168 276,023
Financial assets and liabilities Non-financial assets
and liabilities
December Cash Accounts Accounts Convertibl Mineral Future
31, 2008 and receivabl payable e interest income
cash e and debentures plant and tax
equival accrued equipment liabiliti
ents liabiliti (1) es
es
$`000
$`000 $`000 $`000 $`000
$`000
Canadian 438 2,436 3,477 118,042 - -
dollar
South 5,227 4,821 17,506 - 44,586 -
African
rand
Kazakhsta 1,251 5,978 11,515 - - 342,430
n tenge
Australia 44,597 1,212 7,558 - 38,619 3,271
n dollar
51,513 14,447 40,056 118,042 83,205 345,701
(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 June 30, 2009 of a 10% appreciation or depreciation in
the foreign currencies against the US dollar on the above mentioned financial
and non-financial assets and liabilities of the Corporation.
Other
comprehensive Net
income earnings
$`000 $`000
A 10% appreciation in all foreign 3,375 24,410
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.
(ii) 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 June 30, 2009 are the loan facility obtained by Kyzylkum (note 4.1)
which bears interest at floating rates, the drawn-down amount on the credit
facility which bears interest at floating rates (note 8), and the convertible
debentures, with a fixed interest rate.
A 100 basis point change in the interest rate would impact the Corporation`s
net earnings as follows:
Jun 30, Dec 31,
2009 2008
$`000 $`000
A 100 basis point appreciation in
interest rates, with all other
variables
held constant 1,115 811
A 100 basis point depreciation in the interest rate would have the exact
opposite effect on net earnings.
(iii) 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:
6 months Year
ended ended
Jun 30, Dec 31,
2009 2008
$`000 $`000
A 10% appreciation in commodity
prices, with all other
variables held constant 1,856 14,978
A 10% depreciation in commodity prices would have the exact opposite effect on
net earnings.
16 SEGMENTED INFORMATION
The Corporation`s reportable operating segments are summarized in the table
below:
For the three months ended June 30, 2009: (in $`000)
Country Revenues Operating Depreciatio
expenses nand
depletion
$`000 $`000 $`000
Akdala Mine Kazakhs 9,985 (2,731) (2,498)
tan
South Inkai Kazakhs 8,572 (3,994) (2,753)
Mine tan
Kharasan Kazakhs - - -
Project tan
United United - - -
States States
development
projects
United United - - -
States States
exploration
projects
United United - - -
States States
conventional
mining
projects
Honeymoon Austral - - -
Project ia
Corporate - - -
and other
Total 18,557 (6,725) (5,251)
Country Exploration Net Capital
expense earnings/ expendi
(loss) ture
from
continuing
operations
$`000 $`000 $`000
Akdala Mine Kazakhstan - 2,339 1,786
South Inkai Kazakhstan - 481 3,759
Mine
Kharasan Kazakhstan - (384) 5,017
Project
United United - - 3,915
States States
development
projects
United United (2,082) (1,315) -
States States
exploration
projects
United United - (483) 24
States States
conventional
mining
projects
Honeymoon Australia (294) (271) 3,022
Project
Corporate (303) (266,093) -
and other
Total (2,679) (265,726) 17,523
For the six months ended June 30, 2009: (in $`000)
Country Revenues Operating Depreciation
expenses and
depletion
$`000 $`000 $`000
Akdala Mine Kazakhstan 28,395 (7,445) (6,643)
South Inkai Kazakhstan 33,131 (14,291) (10,639)
Mine
Kharasan Kazakhstan - - -
Project
United United - - -
States States
development
projects
United United - - -
States States
exploration
projects
United United - - -
States States
conventional
mining
projects
Honeymoon Australia - - -
Project
Corporate - - -
and other
Total 61,526 (21,736) (17,282)
Country Exploration Net earnings/ Capital
expense (loss) from expenditure
continuing
operations
$`000 $`000 $`000
Akdala Mine Kazakhstan - 17,550 1,961
South Inkai Kazakhstan - 55,165 5,777
Mine
Kharasan Kazakhstan - 12,516 7,598
Project
United United - (12) 7,008
States States
development
projects
United United (3,189) (961) -
States States
exploration
projects
United United - (692) 44
States States
conventional
mining
projects
Honeymoon Australia (484) (451) 5,069
Project
Corporate (797) (285,485) 249
and other
Total (4,470) (202,370) 27,706
For the three months ended June 30, 2008: (in $`000)
Country Revenues Operating Depreciation
expenses and
depletion
$`000 $`000 $`000
Akdala Mine Kazakhstan 49,390 (9,487) (6,960)
South Inkai Kazakhstan - - -
Mine
Kharasan Kazakhstan - - -
Project
Dominion South - - -
Project Africa
United United - - -
States States
development
projects
United United - - -
States States
exploration
projects
Hobson United - - -
Facility and States
La Palangana
Project
United United - - -
States States
conventional
mining
projects (1)
Honeymoon Australia - - -
Project
Corporate - - -
and other
Total 49,390 (9,487) (6,960)
Country Exploration Net Capital
expense earnings/ expenditure
(loss)
from
continuing
operations
$`000 $`000 $`000
Akdala Mine Kazakhstan - 17,240 3,241
South Inkai Kazakhstan - 819 11,373
Mine
Kharasan Kazakhstan - 745 6,962
Project
Dominion South (488) (1,367) 32,266
Project Africa
United United - (37) 3,019
States States
development
projects
United United (1,445) (1,980) -
States States
exploration
projects
Hobson United - 99 4,560
Facility and States
La Palangana
Project
United United (11) (251) 1,359
States States
conventional
mining
projects (1)
Honeymoon Australia (1,251) (2,214) 4,797
Project
Corporate (1,840) (81,249) 843
and other
Total (5,035) (68,195) 68,420
For the six months ended June 30, 2008: (in $`000)
Country Revenues Operating Depreciation
expenses and
depletion
$`000 $`000 $`000
Akdala Mine Kazakhstan 71,907 (12,779) (9,891)
South Inkai Kazakhstan - - -
Mine
Kharasan Kazakhstan - - -
Project
Dominion South - - -
Project Africa
United United - - -
States States
development
projects
United United - - -
States States
exploration
projects
Hobson United - - -
Facility and States
La Palangana
Project
United United - - -
States States
conventional
mining
projects (1)
Honeymoon Australia - - -
Project
Corporate - - -
and other
Total 71,907 (12,779) (9,891)
Country Exploration Net Capital
expense earnings/ expenditure
(loss)
from
continuing
operations
$`000 $`000 $`000
Akdala Mine Kazakhstan - 26,417 4,855
South Inkai Kazakhstan - 1,159 15,762
Mine
Kharasan Kazakhstan - 928 12,000
Project
Dominion South (540) (1,814) 55,905
Project Africa
United United - (57) 5,643
States States
development
projects
United United (1,814) (1,885) 221
States States
exploration
projects
Hobson United - (6) 11,902
Facility and States
La Palangana
Project
United United (11) (308) 2,849
States States
conventional
mining
projects (1)
Honeymoon Australia (1,528) (2,928) 11,180
Project
Corporate (2,822) (100,014) 2,120
and other
Total (6,715) (78,508) 122,437
Previously Shootaring Canyon Mill
As at June 30, 2009: (in $`000)
Mineral Future
interest
plant and Total income Total
tax
Country equipment assets liabili liabilities
ties
$`000 $`000 $`000 $`000
Akdala Mine Kazakhs 186,472 219,27 52,944 61,375
tan 0
South Inkai Mine Kazakhs 473,641 514,66 161,532 169,739
tan 0
Kharasan Project Kazakhs 202,794 205,37 57,827 110,239
tan 5
United States United 114,596 115,16 - 1,027
development States 9
projects
United States United 121,019 122,82 21,474 21,858
exploration States 4
projects
United States United 40,747 48,263 5,199 8,448
conventional States
mining projects
Honeymoon Project Austral 51,120 54,512 3,720 5,595
ia
Corporate and 16,526 264,19 - 207,725
other 0
Total 1,206,915 1,544, 302,696 586,006
263
As at December 31, 2008: (in $`000)
Mineral Future
interest
plant and Total income tax
Country Equipment assets liabilities
$`000 $`000 $`000
Akdala Mine Kazakhstan 195,719 200,497 66,156
South Inkai Mine Kazakhstan 503,980 506,648 204,255
Kharasan Project Kazakhstan 193,018 197,561 72,019
Dominion Project South 44,586 69,253 -
Africa
United States United 105,844 107,538 -
development States
projects
United States United 122,586 123,532 24,182
exploration States
projects
Hobson Facility United 22,026 24,064 -
and La Palangana States
Project
United States United 40,712 55,098 5,410
conventional States
mining projects
Honeymoon Project Australia 38,620 38,858 3,271
Corporate and 18,324 295,060 -
other
Total 1,285,415 1,618,109 375,293
Total
Country liabilities
$`000
Akdala Mine Kazakhstan 81,385
South Inkai Mine Kazakhstan 212,082
Kharasan Project Kazakhstan 111,230
Dominion Project South Africa 28,629
United States United States 724
development
projects
United States United States 24,418
exploration
projects
Hobson Facility and United States 1,506
La Palangana
Project
United States United States 8,282
conventional mining
projects
Honeymoon Project Australia 4,158
Corporate and other 204,181
Total 676,595
17 SUBSEQUENT EVENTS
Material transactions occurring subsequent to June 30, 2009 are described in
note 3.2.
11 August 2009
Date: 11/08/2009 11:17:55 Produced by the JSE SENS Department.
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