| Fri 15 Jan 2010, 9:06 | | UUU - Uranium One Announces Record Quarterly and Annual Production and Sales |
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UUU - Uranium One Announces Record Quarterly and Annual Production and Sales,
Completion of C$270 Million Financing with JUMI Consortium and Receipt of US$20
Million Dividend from its Betpak Dala Joint Venture
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
January 14, 2010
Uranium One Announces Record Quarterly and Annual Production and Sales,
Completion of C$270 Million Financing with JUMI Consortium and Receipt of US$20
Million Dividend from its Betpak Dala Joint Venture
Vancouver, British Columbia and Johannesburg, South Africa - Uranium One Inc.
today announced record production and sales for the fourth quarter and for the
full year 2009, primarily due to the successful ramp-up in production at the
South Inkai Uranium Mine. The Company also announced the completion of its
C$270 million convertible debenture financing with the JUMI consortium and the
receipt of a US$20 million dividend from its Betpak Dala Joint Venture.
Highlights
Production
42% increase in quarterly attributable production for Q4 2009, to a record 1.2
million lbs U3O8, from 0.8 million lbs produced in Q3 2009
24% increase in annual attributable production for 2009, to a record 3.6 million
lbs U3O8, compared to 2.9 million lbs produced in 2008
Sales
254% increase in quarterly sales volumes for Q4 2009, to a record 1.5 million
lbs U3O8, compared to 0.4 million lbs during Q3 2009
44% increase in annual attributable sales volumes for 2009, to a record 3.2
million lbs U3O8, compared to 2.2 million pounds during 2008
Convertible Debenture Closing
Completion of convertible debenture financing with Japanese consortium and
receipt of aggregate proceeds of C$270 million on January 14, 2010
Dividends
Payment of dividend by Betpak Dala Joint Venture and receipt by Uranium One of
US$20 million in December 2009
Karatau and Christensen Ranch Acquisitions; Sale of Texas Assets
Completion in December 2009 of the acquisition and registration of Uranium One`s
50% interest in the Karatau Uranium Mine
Receipt of all regulatory approvals required in connection with the acquisition
of Christensen Ranch and Irigaray in Wyoming; closing expected by January 31,
2010
Completion in December 2009 of the sale of the Company`s Texas assets to Uranium
Energy Corp. ("UEC") for 2.5 million restricted common shares of UEC
Production
Attributable production during 2009 from Akdala, South Inkai and Kharasan was
3.5 million pounds U3O8, in line with the Company`s guidance for the year.
Including production from Karatau from December 22, 2009, Uranium One`s
attributable production for 2009 was 3.6 million pounds U3O8, a 24% increase
compared to 2.9 million pounds produced during 2008.
During the fourth quarter of 2009, attributable production was 1.2 million
pounds U3O8, the highest quarterly production in the Company`s history and a 42%
increase over production of 0.8 million pounds achieved during the third quarter
of 2009.
Uranium One`s attributable production for the fourth quarter and for the full
year 2009 is shown below.
Table 1 - Uranium One Attributable Production (lbs U3O8)
Q4 2009 Fiscal Year 2009
Akdala 531,500 1,890,300
South Inkai 547,000 1,511,800
Kharasan 28,200 81,700
Sub-total 1,106,700 3,483,800
Karatau(1) 75,400 75,400
Total 1,182,100 3,559,200
(1) Attributable production from Karatau Joint Venture commencing December 22,
2009.
Sales
Attributable sales volume during 2009 from Akdala and South Inkai was 2.9
million pounds U3O8. Including sales from Karatau from December 22, 2009,
Uranium One`s attributable sales for 2009 were 3.2 million pounds, a 44%
increase compared to sales of 2.2 million pounds during 2008.
During the fourth quarter of 2009, attributable sales volume was 1.5 million
pounds U3O8, the highest quarterly sales volume in the Company`s history,
representing a 254% increase in sales compared to 0.4 million pounds during the
third quarter of 2009.
A breakdown of Uranium One`s attributable sales volumes for the fourth quarter
and for the full year 2009 is shown below.
Table 2 - Uranium One Attributable Sales Volumes (lbs U3O8)
Q4 2009 Fiscal Year 2009
Akdala 710,300 1,535,000
South Inkai 535,700 1,399,800
Sub-total 1,246,000 2,934,800
Karatau(1) 252,900 252,900
Total 1,498,900 3,187,700
(1) Attributable sales volume from Karatau Joint Venture commencing December
22, 2009.
Operations Summary
Akdala Uranium Mine
Attributable production from Akdala during the fourth quarter of 2009 was
531,500 pounds U3O8, the highest quarterly production result in Akdala`s
history. The concentration of uranium in solution averaged approximately 68 mg
per litre and the average flow rate from the well fields was approximately 1,880
cubic metres per hour during the fourth quarter, compared to 1,608 cubic metres
per hour during the third quarter.
The well installation program for 2009, consisting of 164 wells, was completed
by the end of December.
South Inkai Uranium Mine
South Inkai achieved record quarterly production of 547,000 pounds U3O8
attributable to Uranium One during the fourth quarter. Several newly acidified
well fields commenced production during the quarter and, as a result, the
average concentration of uranium in solution increased to 74 mg per litre from
the average of 69 mg per litre during the third quarter. Also due to the
additional well fields in production, the average flow rate increased
significantly during the fourth quarter to 1,800 cubic metres per hour, compared
to 1,249 cubic metres per hour during the third quarter.
The well installation program for 2009, consisting of 343 wells, was completed
by the end of December.
Karatau Uranium Mine
The registration of the transfer of a 50% interest in the Karatau Uranium Mine
to Uranium One by the South Kazakhstan Region Department of Justice, and the
release from escrow to JSC Atomredmetzoloto ("ARMZ") of 117 million common
shares of Uranium One, were completed in December 2009. The previously
announced long term offtake and framework agreements with ARMZ became effective
on December 14, 2009.
Uranium One will account for operational and financial results for its 50%
interest in Karatau from December 22, 2009. During the period from December 22,
2009 until year end, Uranium One`s attributable production from Karatau was
75,400 pounds U3O8. The concentration of uranium in solution averaged
approximately 211 mg per litre during this period and the average flow rate from
the well fields was 1,200 cubic metres per hour.
Kharasan Uranium Project
Attributable production during the commissioning process from Kharasan was
28,200 pounds U3O8 during the fourth quarter. The concentration of uranium in
solution averaged approximately 49 mg per litre during the fourth quarter,
compared to an average of 57 mg per litre during the third quarter. The average
flow rate from the well fields increased during the fourth quarter to 330 cubic
metres per hour, compared to 284 cubic metres per hour during the third quarter.
C$270 Million Financing with Japanese Consortium
As previously announced, on December 29, 2009 Uranium One and Japan Uranium
Management Inc. ("JUMI") executed documentation revising the February 9, 2009
private placement between the Company and JUMI to a convertible debenture
financing. JUMI is owned by a Japanese consortium comprising The Tokyo Electric
Power Company, Inc., Toshiba Corporation and the Japan Bank for International
Cooperation.
The private placement was completed, and aggregate closing proceeds of C$270
million received, on January 14, 2009. The previously announced long term
offtake and strategic relationship agreements with the JUMI consortium have now
become effective.
The Company expects that the Kazakh regulatory approval required to convert the
debentures into 117 million Uranium One common shares will be received during
2010.
Dividend from Betpak Dala
In December 2009, Uranium One received a dividend of US$20 million (net of
Kazakh withholding taxes) from its 70% owned Betpak Dala joint venture. This is
the second dividend paid to the shareholders of the Betpak Dala Joint Venture.
Acquisition of Christensen Ranch and Irigaray
The Company has received all regulatory approvals required in connection with
the acquisition of the MALCO joint venture from wholly-owned subsidiaries of
AREVA and EDF for US$35 million in cash.
The assets of MALCO include the licensed and permitted Irigaray central
processing plant, the Christensen Ranch satellite in situ recovery facility and
associated U3O8 resources located in the Powder River Basin of Wyoming. The
Nuclear Regulatory Commission license for the Irigaray central processing plant
allows for a maximum of 2.5 million pounds of dried U3O8 production per year.
Closing of this acquisition is expected to occur by January 31, 2010. Uranium
One plans to continue refurbishment of the Irigaray plant and development of the
Christensen Ranch well fields during 2010, with first production from these
assets commencing in 2011.
Closing of Sale of Texas Assets
Uranium One completed the sale of its 99% interest in the South Texas Mining
Venture, LLP to Uranium Energy Corp. ("UEC") on December 18, 2009. The purchase
price consideration was 2.5 million restricted common shares of UEC.
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: + 1 647 408 8274
Cautionary Statement
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
The production and sales volumes and financial information disclosed in this
press release are preliminary and may be subject to adjustment after completion
of the Company`s audit for the year ended December 31, 2009.
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, attributable production and sales volumes for Q4
2009 and financial year 2009, 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, changes in market conditions, the actual results of
current exploration activities, conclusions of economic evaluations, changes in
project parameters as plans continue to be refined, project cost overruns or
unanticipated costs or expenses, 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,
exchange rate and uranium price fluctuations, delays in obtaining government
approvals or financing or in completion of development or construction
activities, changes in, and the effect of government policy, risks relating to
the timing and completion of the transactions described in this press release,
the potential benefits thereof, risks relating to the benefits derived by the
Corporation from the strategic relationship described in this press release,
risks relating to the integration of acquisitions, to international operations,
to the price 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: 15/01/2010 09:06:20 Produced by the JSE SENS Department.
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