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UUU
UUU
UUU - Uranium One Inc - Interim consolidated financial statements for
the three months
Ended 31 March 2010
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 months ended March 31, 2010
(Unaudited)
Mar 31, Dec 31,
2010 2009
Notes $`000 $`000
ASSETS
Current assets
Cash and cash equivalents 451,361 148,465
Restricted cash 10 8,577 -
Accounts and other receivables 45,807 42,405
Current portion of loans to 4.2 1,088 -
joint ventures
Inventories 5 87,666 71,634
Other assets 7 1,552 24,472
596,051 286,976
Non-current assets
Mineral interests, plant and 6 1,807,834 1,748,284
equipment
Loans to joint ventures 4.2 29,717 29,250
Other assets 7 71,808 33,137
Assets held for sale 3.2 51,460 51,460
1,960,819 1,862,131
Total assets 2,556,870 2,149,107
LIABILITIES
Current liabilities
Accounts payable and accrued 57,677 65,908
liabilities
Income taxes payable 566 1,633
Current portion of long term 8 64,313 63,579
debt
Other liabilities 10 39,659 137,043
162,215 268,163
Non-current liabilities
Convertible debentures 9 483,340 140,862
Asset retirement obligations 23,252 16,100
Future income tax liabilities 192,855 180,687
Other liabilities 10 49,345 49,451
Assets held for sale 3.2 14,160 12,944
762,952 400,044
SHAREHOLDERS` EQUITY
Share capital 11 3,823,952 3,823,297
Contributed surplus 12 134,908 133,478
Equity component of convertible 216,186 46,480
debentures
Accumulated other comprehensive 16,910 16,392
income
Deficit (2,560,253) (2,538,747)
1,631,703 1,480,900
Total shareholders` equity and 2,556,870 2,149,107
liabilities
Basis of presentation and principles of consolidation (note 2.1)
The accompanying notes form an integral part of these Interim
Consolidated Financial Statements
Interim consolidated statements of operations - unaudited
For the three months ended March 31, 2010 and 2009
(in United States Dollars)
Three months ended
Mar 31, Mar 31,
2010 2009
Not $`000 $`000
es
Revenues 35,529 42,969
Operating expenses (14,170) (15,011)
Depreciation and depletion (12,465) (12,031)
Earnings from mine operations 8,894 15,927
General and administrative (1) (9,431) (9,091)
Exploration expense (904) (1,791)
Impairment of mineral interests, 3.2 (1,216) -
plant and equipment
Care and maintenance and closure (1,579) (3,576)
costs
Operating (loss) / earnings (4,236) 1,469
Interest and other 13 (8,117) (2,066)
Gain on available for sale 41 -
securities
Foreign exchange (loss) / gain 14 (7,533) 70,459
Other (1,053) (4)
(Loss) / earnings from continuing (20,898) 69,858
operations before income taxes
Current income tax expense (3,168) (11,617)
Future income tax recovery 2,560 5,115
(Loss) / earnings from continuing (21,506) 63,356
operations
Loss from discontinued operations - (2,223)
Net (loss) / earnings (21,506) 61,133
(1) Stock option and restricted 12 1,979 1,466
share expense (non-cash) included
in general and administrative
Loss per share from continuing
operations
Basic $(0.04) $0.13
Diluted $(0.04) $0.13
Loss per share from discontinued
operations
Basic - $(0.00)
Diluted - $(0.00)
Net (loss) / earnings per share
Basic $(0.04) $0.13
Diluted $(0.04) $0.13
Weighted average number of shares
(in thousands)
Basic 16 587,294 469,614
Diluted 16 587,294 477,625
The accompanying notes form an integral part of these Interim
Consolidated Financial Statements.
Interim consolidated statements of changes in equity - unaudited
For the three months ended March 31, 2010 and year ended December 31,
2009
(in United States Dollars)
Share Contrib Equity Accumul Deficit Total
capital uted compone ated $`000 $`000
$`000 surplus nt of other
$`000 convert compreh
ible en-
debentu sive
res income
$`000 /
(loss)
$`000
Balance as at 3,522,8 131,602 46,480 (247,70 (2,502, 950,538
January 1, 2009 24 8) 660)
Net loss for the - - - - (36,087 (36,087
year ) )
Stock options and - 7,502 - - - 7,502
restricted shares
vested
Exercise of stock 6,856 (5,626) - - - 1,230
options and
restricted shares
Issuance of 388 388
contingent shares
Unrealized gain - - - 16,391 - 16,391
recognized on
translation of
self-sustaining
foreign
operations
Realized loss on - - - 13,074 - 13,074
sale of Gold One
Realized loss on - - - 234,533 - 234,533
sale of Uranium
One Africa
Acquisition of 293,229 - - - - 293,229
Karatau
Fair value - - - 102 - 102
adjustments on
available for
sale securities
Balance as at 3,823,2 133,478 46,480 16,392 (2,538, 1,480,9
December 31, 2009 97 747) 00
Net loss for the - - - - (21,506 (21,506
period ) )
Stock options and - 1,979 - - - 1,979
restricted shares
vested
Exercise of stock 655 (549) - - - 106
options and
restricted shares
Unrealized gain - - - 2,081 - 2,081
recognized on
translation of
self-sustaining
foreign
operations
Fair value - - - (1,563) - (1,563)
adjustments on
available for
sale securities
JUMI Debentures - - 125,692 - - 125,692
(note 9)
2010 Debentures - - 44,014 - - 44,014
(note 9)
Balance as at 3,823,9 134,908 216,186 16,910 (2,560, 1,631,7
March 31, 2010 52 253) 03
The accompanying notes form an integral part of these Interim
Consolidated Financial Statements
Interim consolidated statements of comprehensive income/(loss) -
unaudited
For the three months ended March 31, 2010 and 2009
(in United States Dollars)
Mar 31,
Mar 31, 2009
2010
$`000 $`000
Unrealized (loss) / gain recognized on 2,081 807
translation of self-sustaining foreign
operations
Realized loss on sale of Gold One - 10,840
Fair value adjustments on available (1,563) 123
for sale securities
Other comprehensive income / (loss) 518 11,770
for the period
Net (loss) / profit (21,506 61,133
)
Comprehensive (loss) / income (20,988 72,903
)
Interim Consolidated Statements of Accumulated Other Comprehensive
Income / (Loss) - Unaudited
As at March 31, 2010 and December 31, 2009
(in United States dollars)
Mar 31, Dec 31,
2010 2009
$`000 $`000
Accumulated other comprehensive income 16,392 (247,70
/ (loss) at January 1 8)
Other comprehensive income for the 518 264,100
period
16,910 16,392
Deficit (2,560, (2,538,
253) 747)
Accumulated other comprehensive loss (2,543, (2,522,
and deficit 343) 355)
Components of accumulated other
comprehensive income at the end of the
period:
Unrealized foreign exchange adjustment 18,371 16,290
- continuing operations
Available for sale marketable (1,461) 102
securities and investments
16,910 16,392
The accompanying notes form an integral part of these Interim
Consolidated Financial Statements
Interim consolidated statements of cash flows - unaudited
For the three months ended March 31, 2010 and 2009
(in United States Dollars)
Three months
ended
Mar 31, Mar 31,
2010 2009
Not $`000 $`000
es
Net (loss) / earnings from continuing (21,506 63,356
operations )
Items not affecting cash:
- Fair value adjustment included in 10 (3,398) -
revenue
- Depreciation and depletion 12,465 12,031
- Impairment of mineral interest plant 3.2 1,216 -
and equipment
- Stock option and restricted share 12 1,979 1,466
expense
- Interest accrued on loans and 6,357 2,437
debentures
- Unrealized foreign exchange loss / 14 6,419 (70,923
(gain) )
- Future income tax recovery (2,560) (5,115)
- Other 454 1,339
Movement in non-cash working capital 15 (1,261) 8,589
Cash flows from operating activities 165 13,180
Acquisition of mineral interests, plant (20,966 (10,183
and equipment ) )
Cash payments for other assets (17,442 (1,302)
)
Acquisition of Christensen Ranch and (28,869 -
Irigaray )
Acquisition of available for sale (26,445 -
securities )
Karatau promissory note and contingent (111,77 -
payment 3)
Cash advance for sulphuric acid plant - (2,729)
investment
Proceeds on sale of Gold One - 12,999
Uranium purchased - (2,407)
Cash proceeds from joint ventures - 4,667
Proceeds on sale of mineral interests, - 3,679
plant and equipment
Restricted cash 10 (8,577) -
Other (168) -
Cash flows (used in) / from investing (214,24 4,724
activities 0)
Common shares issued, net of issue costs 106 -
Net loans received by joint ventures 12,322 12,000
Debentures issued, net of issue costs 498,626 -
Cash flows from financing activities 511,054 12,000
Effects of exchange rate changes on cash 5,917 (2,220)
and cash equivalents
Net increase in cash and cash 302,896 27,684
equivalents from continuing operations
Cash and cash equivalents at the beginning of 148,465 176,225
the period
Cash and cash equivalents at the end of 451,361 203,909
the period
Supplemental cash flow information (note 15)
The accompanying notes form an integral part of these Interim
Consolidated Financial Statements
Notes to the interim consolidated financial statements - unaudited
As at March 31, 2010 and December 31, 2009
(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 50% interest in the Karatau joint venture, which
owns the Karatau uranium mine in Kazakhstan, and 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, and Canada.
On April 14, 2010, the Corporation sold its South African development
and exploration assets.
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, 2009, 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
March 31, 2010:
Operating mine:
Entity Mineral Location Ownership Status
property/Operation
Betpak Akdala Uranium Kazakhstan 70% Proportionately
Dala Mine consolidated
LLP
Betpak South Inkai Kazakhstan 70% Proportionately
Dala Uranium Mine consolidated
LLP
Karatau Karatau Uranium Kazakhstan 50% Proportionately
LLP Mine consolidated
Advanced development projects:
Entity Mineral Location Ownership Status
property/Operation
Kyzylkum Kharasan Uranium Kazakhstan 30% Proportionately
LLP Project consolidated
The Corporation is also developing the following mineral properties:
Entity Mineral Location Ownership Status
property/Operation
Uranium United States United 100% Consolidated
One development States
Americas, projects
Inc.
Honeymoon Honeymoon Project Australia 51% Proportionately
Uranium consolidated
Project
Joint
Venture
The Corporation owns a 19% interest in the SKZ-U joint venture, which
is constructing a sulphuric acid plant in Kazakhstan (note 4.1).
2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.2 Adoption of new standards and recent accounting pronouncements
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`s business combinations with acquisition dates on or after
January 1, 2011. Early adoption is permitted and the Corporation
adopted this standard effective January 1, 2010.
Consolidated financial statements and non-controlling interests
CICA Section 1601 - "Consolidated Financial Statements" ("Section
1601") and Section 1602 - "Non-controlling Interests" ("Section 1602")
replaces CICA Handbook Section 1600 - "Consolidated Financial
Statements". Sections 1601 and 1602 establish standards for
preparation of consolidated financial statements and the accounting
for non-controlling interests in financial statements that are
equivalent to the standards under IFRS. These standards are effective
for the Corporation for interim and annual financial statements
beginning on January 1, 2011. Early adoption is permitted and the
Corporation adopted this standard effective January 1, 2010.
Financial instruments - recognition and measurement
In June 2009, the CICA amended Section 3855 to clarify the application
of the effective interest rate method after a debt instrument has been
impaired and when an embedded prepayment option is separated from its
host debt instrument at initial recognition for accounting purposes.
The amendments are applicable for the Corporation`s interim and annual
financial statements for its fiscal year beginning January 1, 2011.
Earlier adoption is permitted. The Corporation is currently
evaluating the future impact of this section on its financial
statements.
3 ACQUISITIONS AND DISPOSALS
3.1 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 $35.3 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 Corporation also assumed MALCO`s reclamation
liabilities in respect of uranium properties in Texas.
Pursuant to the acquisition agreement, the Corporation placed a
deposit of $8.8 million in escrow to be applied against the purchase
price. The acquisition closed on January 25, 2010. The Corporation
accounted for the acquisition as a business combination.
The Corporation agreed to pay a portion of operating costs and all of
the Texas reclamation costs incurred from the execution date of August
7, 2009 to the closing date of January 25, 2010 which amounted to $2.6
million. Transaction costs incurred in connection with the
acquisition were $0.5 million, which were expensed as incurred.
3 ACQUISITIONS AND DISPOSALS (CONTINUED)
The aggregate fair values of assets acquired and liabilities assumed
were as follows on acquisition date:
$`000
Purchase price:
Cash 35,315
Operating and remediation costs 2,619
37,934
Net assets acquired:
Cash and cash equivalents 315
Accounts and other receivables 2,005
Mineral interests, plant and 56,364
equipment
Accounts payable and accrued (34)
liabilities
Asset retirement obligations (7,320)
Future income tax liabilities (13,396)
37,934
3.2 Assets held for sale
Uranium One Africa
In May 2009, the Corporation committed to a plan to sell Uranium One
Africa Limited, ("Uranium One Africa"), a wholly 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 sold Uranium One Africa during April 2010, and
received cash proceeds of $37.3 million. The net carrying value of
the investment of $38.5 million as at December 31, 2009 was further
impaired to the proceeds of $37.3 million, resulting in an impairment
of $1.2 million in the three months ended March 31, 2010.
March 31, 2010
$`000
Total assets 51,460
Total liabilities (14,160)
Net carrying value 37,300
Carrying value on 38,516
January 1, 2010
Impairment (1,216)
Estimated recoverable 37,300
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%
Karatau 50%
SKZ-U LLP 19%
Honeymoon 51%
Australia Exploration 50%
The Corporation`s proportionate share of the assets and liabilities of
the joint ventures are as follows:
As at March Betp Kyzyl Kara SKZ- Honeym Total
31, 2010 ak kum tau U oon &
Dala Austra
lia
explor
ation
$`00 $`000 $`00 $`0 $`000 $`000
0 0 00
Cash 18,5 89 7,50 215 8,378 34,75
72 5 9
Other 80,9 1,268 25,2 9 1,057 108,5
current 87 26 47
assets
Mineral 647, 206,4 505, 4,9 91,618 1,455
interests, 602 28 400 31 ,979
plant and
equipment
Other 1,37 360 1,90 5,8 - 9,525
assets 3 2 90
Current (13, (4,76 (25, (40 (2,485 (46,3
liabilities 209) 9) 868) ) ) 71)
Other (1,4 (49,0 (25, - (35) (76,0
liabilities 16) 94) 459) 04)
(1) (2)
Future (55, (12,3 (75, - (4,176 (146,
income tax 089) 35) 341) ) 941)
liabilities
Asset (8,4 (1,39 (2,9 - (748) (13,4
retirement 02) 6) 32) 78)
obligation
Net Assets 670, 140,5 410, 11, 93,609 1,326
418 51 433 005 ,016
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
March 31, 2010, and the Corporation`s share of these facilities is $48
million. Negotiations are currently underway to extend the repayment
terms of these facilities, due to the delayed ramp-up schedule at
Kharasan. While the negotiations for additional funding are in
progress, Kyzylkum is being financed through the receipt of pre-
payments on its sales contracts.
Karatau negotiated and drew down on a secured short term bank loan
totaling $10 million with Citibank during 2009. During the three
month period ended March 31, 2010, Karatau negotiated additional
secured bank loans from Halyk Bank, in the amount of $11 million, and
Unicredit Bank in the amount of $30 million. The Halyk Bank facility
was drawn down in full, $15 million was drawn against the Unicredit
Bank facility and an additional $0.8 million was drawn down against
the Citibank short term loan during the three months ended March 31,
2010. The remaining $15 million of the $30 million facility from
Unicredit Bank was drawn down in April 2010. The Corporation issued a
guarantee to Unicredit Bank to secure the facility. At March 31,
2010, the Corporation`s share of these loans is $18.4 million.
As at Betp Kyzyl Kara SKZ- Honeym Total
December ak kum tau U oon &
31, 2009 Dala Austra
lia
explor
ation
$`00 $`000 $`00 $`0 $`000 $`000
0 0 00
Cash 3,06 871 160 412 5,163 9,668
2
Other 77,8 274 18,9 5 1,388 98,46
current 71 30 8
assets
Mineral 658, 205,2 510, 3,5 78,039 1,455
interests, 509 93 494 37 ,872
plant and
equipment
Other 1,47 389 1,92 7,0 - 10,81
assets 9 4 18 0
Current (8,4 (4,03 (27, (38 (2,575 (42,1
liabilities 94) 4) 020) ) ) 61)
Other (1,4 (48,7 (16, - (34) (66,9
liabilities 79) 81) 687) 81)
(1) (2)
Future (55, (12,2 (74, - (4,074 (146,
income tax 844) 23) 637) ) 778)
liabilities
Asset (8,1 (1,35 (2,8 - (705) (13,0
retirement 70) 6) 47) 78)
obligation
Net Assets 666, 140,4 410, 10, 77,202 1,305
934 33 317 934 ,820
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
December 31, 2009, and the Corporation`s share of these facilities is
$48 million.
Karatau negotiated a secured short term bank loan totaling $10 million
with Citibank and the Corporation`s share of this loan is $5 million.
4 JOINT VENTURES (CONTINUED)
4.1 Proportionate interests in joint ventures (continued)
The Corporation`s proportionate share of revenue, expenses, net
earnings / (loss) and cash flows for the three months ended March 31,
2010 and 2009 are as follows:
Three months ended
March 31, 2010
Betp Kyzyl Kara SKZ- Honeym Tota
ak kum tau U oon & l
Dala Austra
lia
explor
ation
$`00 $`000 $`00 $`00 $`000 $`00
0 0 0 0
Revenue 27,8 - 5,59 - - 33,4
73 1 64
Expenses and (20, (264) (5,6 3 (6) (26,
other income 822) 36) 725)
Foreign (2,4 (102) (911 56 - (3,4
exchange 78) ) 35)
(loss) /
gain
Earnings / 4,57 (366) (956 59 (6) 3,30
(loss) 3 ) 4
before
income taxes
Current (2,4 - (581 - - (3,0
income tax 67) ) 48)
expense
Future 1,22 (8) (47) - 5 1,17
income tax 0 0
recovery /
(expense)
Earnings / 3,32 (374) (1,5 59 (1) 1,42
(loss) 6 84) 6
Cash flows 22,1 - (4,7 - - 17,3
from / (used 46 79) 67
in)
operating
activities
Cash flows (4,6 (1,08 (2,9 (197 (11,43 (20,
used in 29) 8) 87) ) 9) 340)
investing
activities
Cash flows (2,0 306 15,1 - 14,654 28,0
(used in) / 07) 11 64
from
financing
activities
Net increase 15,5 (782) 7,34 (197 3,215 25,0
/ (decrease) 10 5 ) 91
in cash
Three months ended
March 31, 2009
Betp Kyzyl Honeym Tota
ak kum oon & l
Dala Austra
lia
explor
ation
$`00 $`000 $`000 $`00
0 0
Revenue 42,9 - - 42,9
69 69
Expenses and (26, (272) (180) (27,
other income 727) 179)
Foreign 59,2 13,17 - 72,3
exchange 04 5 79
gain
Earnings / 75,4 12,90 (180) 88,1
(loss) 46 3 69
before
income taxes
Current (9,7 (3) - (9,7
income tax 03) 06)
expense
Future 3,24 - - 3,24
income tax 6 6
recovery
Earnings / 68,9 12,90 (180) 81,7
(loss) 89 0 09
Cash flows 26,0 (75) 67 26,0
from / (used 27 19
in)
operating
activities
Cash flows (1,2 (6,39 (999) (8,6
used in 70) 5) 64)
investing
activities
Cash flows - 12,00 7 12,0
from 0 07
financing
activities
Net increase 24,7 5,530 (925) 29,3
/ (decrease) 57 62
in cash
JOINT VENTURES (CONTINUED)
4.2 Loans to joint ventures
Mar 31, Dec 31,
2010 2009
$`000 $`000
Current portion
Kyzylkum loan from Betpak Dala 408 -
Karatau loan from Betpak Dala 680 -
1,088 -
Long term portion
SKZ-U 3,597 3,552
Kyzylkum 26,120 25,698
29,717 29,250
Total 30,805 29,250
Kyzylkum and Karatau loan from Betpak Dala
During the three months ended March 31, 2010, Betpak Dala made loans
of $1 million to Kyzylkum and $3.4 million to Karatau, and the
Corporation`s proportionate share of these loans is $0.4 million and
$0.7 million respectively. Both of these loans are non interest
bearing and classified as current. Both loans were fully repaid in
April 2010.
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.
Mar 31, Dec 31,
2010 2009
$`000 $`000
Balance at January 1 35,000 46,666
Repaid during the period - (11,666)
35,000 35,000
Interest accrued 2,314 1,711
Balance at the end of the period 37,314 36,711
Less: elimination of (11,194) (11,013)
proportionate share - 30%
26,120 25,698
Less: current portion - -
Long term portion 26,120 25,698
The loans to Kyzylkum are unsecured.
Kyzylkum has suspended scheduled payments of principal and interest to
the Corporation pending receipt of additional financing currently
being arranged by the Corporation and its partners in the Kyzylkum
joint venture. The repayments of the $35 million principal due from
Kyzylkum are likely to be deferred as part of the financing of
Kyzylkum`s activities. The Corporation therefore classified the amount
outstanding on the loan to Kyzylkum as non-current.
5 INVENTORIES
Mar 31, Dec 31,
2010 2009
$`000 $`000
Finished uranium concentrates 58,923 41,055
Solutions and concentrates in 21,706 24,871
process
Product inventory 80,629 65,926
Materials and supplies 7,037 5,708
87,666 71,634
All operating expenses and depreciation and depletion are processed to
inventory and expensed when the product is sold.
Finished uranium concentrates includes a fair value adjustment of $4.5
million at March 31, 2010 and $8.9 million at December 31, 2009 that
was recognized on acquisition of Karatau, to increase the carrying
value to fair market value. $3.5 million was released to the
statement of operations as non-cash depreciation and depletion for
sales made up to March 31, 2010. The re-valued inventory was written
down by $0.9 million to net realizable value on March 31, 2010
6 MINERAL INTERESTS, PLANT AND EQUIPMENT
March 31, 2010 Accumulate Net
d carrying
Cost amortizati Amount
on
$`000 $`000 $`000
Mineral interests 1,533, (97,668) 1,435,857
525
Plant and equipment 421,31 (49,337) 371,977
4
1,954, (147,005) 1,807,834
839
December 31, 2009 Accumulated Net
carrying
Cost amortization amount
$`000 $`000 $`000
Mineral interests 1,485,968 (82,852) 1,403,116
Plant and equipment 385,621 (40,453) 345,168
1,871,589 (123,305) 1,748,284
A summary by property of the net book value is as follows:
March 31, Mineral interests
2010
Non- Plant Total
deplet and
able equipme
nt
Deplet Total
able
Country $`000 $`000 $`000 $`000 $`000
Akdala Mine Kazakhs 73,155 74,358 147,513 27,491 175,00
tan 4
South Inkai Kazakhs 101,91 269,81 371,729 100,491 472,22
Mine tan 2 7 0
Karatau Kazakhs 134,37 312,57 446,947 58,453 505,40
Mine tan 2 5 0
Kharasan Kazakhs - 140,07 140,078 71,281 211,35
Project tan 8 9
United United - 139,06 139,066 40,241 179,30
States States 6 7
development
projects
United United - 117,01 117,015 489 117,50
States States 5 4
exploration
projects
United United - 39,107 39,107 816 39,923
States States
conventiona
l mining
projects
Honeymoon Austral - 32,767 32,767 58,851 91,618
Project ia
Corporate - 1,635 1,635 13,864 15,499
and other
Total 309,43 1,126, 1,435,8 371,977 1,807,
9 418 57 834
December Mineral interests
31, 2009
Non- Plant Total
and
equipme
nt
Deplet deplet Total
able able
Country $`000 $`000 $`000 $`000 $`000
Akdala Mine Kazakhs 77,199 74,358 151,557 28,149 179,70
tan 6
South Inkai Kazakhs 194,75 181,06 375,821 102,598 478,41
Mine tan 3 8 9
Karatau Kazakhs 141,05 312,57 453,627 56,867 510,49
Mine tan 2 5 4
Kharasan Kazakhs - 140,07 140,078 68,752 208,83
Project tan 8 0
United United - 94,653 94,653 26,873 121,52
States States 6
development
projects
United United - 114,90 114,905 493 115,39
States States 5 8
exploration
projects
United United - 38,896 38,896 1,014 39,910
States States
conventiona
l mining
projects
Honeymoon Austral - 31,830 31,830 46,209 78,039
Project ia
Corporate - 1,749 1,749 14,213 15,962
and other
Total 413,00 990,11 1,403,1 345,168 1,748,
4 2 16 284
7 OTHER ASSETS
Mar 31, Dec 31,
2010 2009
$`000 $`000
Current
Borrowed uranium concentrates - 8,900
Future income tax assets 1,072 1,070
Deposit for acquisition of - 8,750
Christensen Ranch and Irigaray (note
3.1)
Deferred business development - 5,174
expenditure
Other 480 578
1,552 24,472
Non-current
Asset retirement fund 28,851 13,500
Advances for plant and equipment 6,229 7,487
Long term deposits and guarantees 354 347
Long term inventory 1,229 1,244
Available for sale securities 34,232 9,287
Other 913 1,272
71,808 33,137
Asset retirement fund
The Corporation contributed $15.4 million to its asset retirement fund
as part security for the additional asset retirement obligations
acquired as part of the acquisition of Christensen Ranch and Irigaray
(note 3.1).
Uranium concentrates borrowed
The Corporation entered into uranium concentrates borrowing agreements
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. 300,000 pounds of borrowed
uranium concentrates, with a fair value of $12.6 million (note 10),
were delivered into sales contracts in the three months ended March
31, 2010 due to shipping delays in respect of product produced by
Betpak Dala.
Available for sale securities
The Corporation holds available for sale securities with a cost of
$35.8 million and a fair value of $34.2 million. Unrealized losses of
$1.6 million are included in accumulated other comprehensive income.
8 LONG TERM DEBT
Mar 31, Dec 31,
2010 2009
$`000 $`000
Opening balance 63,579 61,275
Amortized financing fees 731 2,371
Interest paid (366) (1,210)
Interest accrued 369 1,143
Closing balance 64,313 63,579
Current portion 64,313 63,579
Long term portion - -
64,313 63,579
The Corporation established a $100 million credit facility with the
Bank of Montreal and the Bank of Nova Scotia in 2008. The outstanding
amount under the credit facility is repayable on June 27, 2010 and the
repayment date may be extended, if needed, to June 27, 2011, with
lenders` consent. Letters of credit in the amount of $9.2 million
have been issued under the credit facility. Cash collateral of $9.1
million has been provided in respect of letters of credit with expiry
dates after June 27, 2010 issued under the credit facility, in
accordance with the credit agreement.
9 CONVERTIBLE DEBENTURES
2006 Debentures
The Corporation has outstanding convertible unsecured subordinated
debentures maturing December 31, 2011 (the "2006 Debentures") with a
face value of C$155.3 million ($152.4 million). The 2006 Debentures
were originally issued at C$1,000 per debenture and bear interest at
an annual rate of 4.25%, payable semi-annually in arrears on June 30
and December 31 of each year. The conversion price is C$20 per share,
which is equivalent to 50 common shares for each C$1,000 principal
amount of debentures.
2010 Debentures
On March 12, 2010 the Corporation issued convertible unsecured
subordinated debentures for gross proceeds of C$260 million ($253.3
million), including C$10 million taken up under an underwriters` over-
allotment option. The 2010 Debentures have a March 13, 2015 maturity
date, with interest payable at a rate of 5.0% per annum, payable semi-
annually from the date of receipt of all necessary Kazakh approvals
for the conversion of the 2010 Debentures, or at a rate of 7.5% per
annum, payable semi-annually before the receipt of the necessary
Kazakh approvals. The 2010 Debentures will be convertible into common
shares of the Corporation after receipt of all necessary Kazakh
approvals, at a rate of 250 common shares per C$1,000 principal and
will have a conversion price of C$4.00 per common share.
JUMI Debentures
On January 14, 2010, the Corporation issued to Japan Uranium
Management Inc. ("JUMI") C$269.1 million ($258. 1 million) aggregate
principal amount of unsecured convertible debentures maturing ten
years from the date of issue, with interest at a rate of 3% per annum,
payable semi-annually. The debentures will automatically convert into
117,000,000 Uranium One common shares on receipt of required Kazakh
regulatory approval. If such approval is not received, the holder may,
on 12 months` notice, redeem the debentures at par plus accrued and
unpaid interest. Such redemption may not occur before the second
anniversary of the closing in January 2012.
The debentures contain both a liability component and an equity
component, being the holders` conversion right, which is presented
separately on the consolidated balance sheet as illustrated in the
table below. The Corporation has allocated the fair value of the
debentures to the individual liability and equity components by
establishing the liability component and then allocating the balance
remaining, after subtracting the fair value of the liability from the
issue price, to the equity component. The fair value of the liability
component was determined by discounting the stream of future payments
of interest and principal amounts at the estimated prevailing market
rate for a debt instrument of comparable maturity and credit quality
but excluding any conversion privilege by the holder. A rate of
10.38% was used for the 2010 Debentures and 11.33% for the JUMI
Debentures.
The table below provide a breakdown of the equity and liability
allocation on initial recognition of the JUMI Debentures and 2010
Debentures:
JUMI 2010
Debentures Debentures
$`000 $`000
Liability 131,378 207,203
Transaction costs (1,050) (10,357)
Net liability 130,328 196,846
Equity 126,727 46,068
Transaction costs (1,035) (2,054)
Net equity 125,692 44,014
Net proceeds 256,020 240,860
The table below indicates the movement in the liability:
March 31, 2010
JUMI 2010 2006 Total
Debentures Debentures Debentures
$`000 $`000 $`000 $`000
Opening balance - - 140,862 140,862
Issued 131,378 207,203 - 338,581
Interest accrued 3,121 1,253 2,424 6,798
Transaction costs (1,050) (10,357) - (11,407)
Foreign exchange 3,064 1,225 4,217 8,506
movement
Liability as at the 136,513 199,324 147,503 483,340
end of the period
9 CONVERTIBLE DEBENTURES (CONTINUED)
December 31, 2009
2006 Total
Debentures
$`000 $`000
Opening balance 118,042 118,042
Interest incurred 8,739 8,739
Coupon payment (6,049) (6,049)
Foreign exchange 20,130 20,130
movement
Liability as at the 140,862 140,862
end of the period
10 OTHER LIABILITIES
Mar 31, Dec 31,
2010 2009
$`000 $`000
Current
Promissory note - 90,211
Contingent payment - 20,000
Unfavorable contract 7,049 11,655
Uranium concentrates loan 12,600 8,900
Short term loan 18,818 5,000
Other 1,192 1,277
39,659 137,043
Non-current
Kyzylkum external loan facility 47,601 47,574
(note 4.1)
Due to the Republic of Kazakhstan 1,576 1,696
Other 168 181
49,345 49,451
Uranium concentrates loan
On September 22, 2008, the Corporation entered into a loan agreement
to borrow 200,000 pounds of U3O8 to be repaid on September 30, 2010.
Under the loan agreement, loan fees of 3.5% per annum are payable
based on the value of the borrowed U3O8. The loan was classified as a
financial liability held for trading and is recorded at fair value.
The borrowed material was delivered into contracts during the three
months ended March 31, 2010 to simplify logistical arrangements. The
Corporation paid $8.6 million as cash collateral for the letter of
credit that was issued as guarantee for the loan during the three
months ended March 31, 2010.
During the three months ended March 31, 2010, the Corporation entered
into a further short term borrowing agreement to borrow 100,000 pounds
of U3O8 and the borrowed material was delivered into a contract to
simplify logistical arrangements. The financial liability is held for
trading and is carried at fair value.
Two directors of Uranium One, and one nominee for election as a
director at the 2010 annual general meeting, are also senior officers
of the entities that advanced the uranium loans to the Corporation.
The Corporation does not recognize revenue when borrowed material is
delivered into a contract, and revenue will be recognized on the date
when the borrowed material is delivered into the Corporation`s account
from its own production.
Unfavourable contract
The Corporation acquired an unfavorable contract as part of the
Karatau acquisition during 2009, which is carried at fair value. The
Corporation realized $3.4 million of the fair value in revenue during
the period ended March 31, 2010 for deliveries into the unfavorable
contract. A fair value adjustment of $1.2 million was recorded in the
statement of operations for the change in the uranium price during the
period ended March 31, 2010.
Promissory note
During 2009, the Corporation issued a $90 million promissory note as
part of the consideration for the purchase of Karatau. The promissory
note was due not later than 12 months from closing and was repaid on
January 18, 2010.
10 OTHER LIABILITIES (CONTINUED)
Contingent payment
The Karatau purchase agreement 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. The first payment of $20 million was made during
January 2010. The Corporation has not recognized the remaining $40
million contingent payments as a liability, as the requirement to make
such payment will not be determinable until January 1, 2011 and 2012,
respectively.
11 SHARE CAPITAL
Number of Value of
Issued and outstanding common shares shares shares
$`000
Common shares on January 1, 2009 469,612,9 3,522,824
56
Exercise of stock options 600,184 6,599
Exercise of restricted shares 44,836 257
Contingent shares issued 165,600 388
Karatau acquisition shares issued 117,000,0 293,229
00
Issued and outstanding common shares 587,423,5 3,823,297
at December 31, 2009 76
Exercise of stock options 69,966 655
Issued and outstanding common shares 587,493,5 3,823,952
at March 31, 2010 42
12 CONTRIBUTED SURPLUS
The following table details the movement of contributed surplus during
the period:
Restric
ted
Warrant shares Option Total
s s
$`000 $`000 $`000 $`000
As at January 1, 13,912 1,606 116,08 131,602
2009 4
Stock options - - 7,027 7,027
issued and vested
Stock options - - (5,369 (5,369)
exercised )
Restricted shares - 475 - 475
issued and vested
Restricted shares - (257) - (257)
exercised
As at December 31, 13,912 1,824 117,74 133,478
2009 2
Stock options - - 1,877 1,877
issued and vested
Stock options - - (549) (549)
exercised
Restricted shares - 102 - 102
issued and vested
As at March 31, 13,912 1,926 119,07 134,908
2010 0
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:
March 31, December
2010 31, 2009
Risk free interest rate 2.79% 1.70% -
2.82%
Expected dividend yield 0% 0%
Expected volatility of the Uranium 94% 98% - 115%
One`s share price
Expected life 5 years 5 years
Warrants
The Corporation has no outstanding warrants at March 31, 2010
(December 31, 2009: nil).
12 CONTRIBUTED SURPLUS (CONTINUED)
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 15,858,517 7.82
1, 2009
Granted options 6,292,351 2.23
Exercised options (600,184) 2.25
Forfeitures of stock options (2,986,524 6.89
)
Outstanding options as at December 18,564,160 6.26
31, 2009
Granted options 4,446,400 2.79
Exercised options (69,966) 1.55
Forfeitures of stock options (917,134) 7.45
Outstanding options as at March 22,023,460 5.52
31, 2010
The stock option compensation expense for the period ended March 31,
2010 was $1.9 million and for the period ended March 31, 2009 it was
$1.2 million. As at March 31, 2010, the aggregate unexpensed fair
value of unvested stock options granted amounted to $12.2 million
(during the three months ended March 31, 2009: $11.6 million). The
fair value of options granted during the period amounts to $9.0
million ($2.03 per option) (during the three months ended March 31,
2009: $7.9 million, $1.29 per option).
The following table summarizes stock options outstanding at March 31,
2010:
Options outstanding Options exercisable
Range of Number Weight Weight Number Weighte Weighted
exercise outsta ed ed exercis d average
prices nding averag averag able as average exercise
as at e e at remaini price
March remain exerci March ng life
31, ing se 31,
2010 life price 2010
Cdn $ (years Cdn $ (years) Cdn $
)
0.78 to 5,968, 3.78 2.18 2,150,0 3.45 2.16
2.74 643 98
2.75 to 7,921, 4.10 3.27 2,363,4 3.08 3.99
4.76 353 96
4.77 to 1,991, 2.35 7.03 1,936,6 2.33 7.09
7.79 111 19
7.80 to 3,024, 5.45 8.44 3,006,3 5.47 8.44
9.90 550 03
9.91 to 1,575, 2.41 12.15 1,535,4 2.41 12.14
12.93 125 60
12.94 to 565,42 1.90 13.96 531,458 1.87 13.99
15.63 8
15.64 to 977,25 1.93 16.53 682,260 1.94 16.50
16.59 0
22,023 3.77 5.52 12,205, 3.41 7.41
,460 694
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, 2009 623,495
Exercised during the year (44,836)
Expired (127,500)
Balance at December 31, 2009 451,159
Expired (5,500)
Balance at March 31, 2010 445,659
The following is a summary of the outstanding restricted share rights:
Number of restricted
shares
Mar 31, Dec 31,
2010 2009
Grant date
June 7, 2006 72,083 72,083
December 8, 2006 4,576 4,576
April 7, 2008 369,000 374,500
Balance at the end of the period 445,659 451,159
12 CONTRIBUTED SURPLUS (CONTINUED)
Restricted share rights will not expire while the rights holder is an
employee of the Corporation.
The restricted share rights expense for the period ended March 31,
2010 was $0.1 million and for the period ended March 31, 2009 was $0.2
million. As at March 31, 2010 the aggregate unexpensed fair value of
unvested restricted share rights granted amounted to $0.5 million
(2009: $1.2 million). No restricted shares were granted during the
three month period ended March 31, 2010.
Contingently issuable shares
Under the terms of the acquisition agreement for the Kyzylkum JV
interest, Uranium One is obligated to issue 6,964,200 common shares of
Uranium One upon commencement of commercial production from Kyzylkum.
The Corporation assumed all of the obligations of Uranium One
Americas, Inc. (previously Energy Metals Corporation Inc.) and its
subsidiaries arising under certain option and joint venture agreements
with third parties. At March 31, 2010 Uranium One has reserved a
total of 57,500 common shares for issuance pursuant to the assumed
obligations under contingent share rights agreements. No contingent
shares were issued during the period and no contingent share rights
have lapsed during the period.
13 INTEREST AND OTHER
Period ended
Mar 31, Mar 31,
2010 2009
$`000 $`000
Interest income 1,015 974
Interest paid (1,092) (347)
Convertible debenture interest (6,798) (1,943)
Credit facility charges (863) (658)
Interest and costs incurred on (79) (92)
uranium concentrates loan
Costs incurred in relation to letters (300) -
of credit
(8,117) (2,066)
14 FOREIGN EXCHANGE (LOSS) / GAIN
A summary of the foreign exchange loss by item is as follows:
Period ended
Mar 31, Mar 31,
2010 2009
$`000 $`000
Unrealized foreign exchange (loss) / (1,154) 68,899
gain on future income tax liabilities
Unrealized foreign exchange (loss) / (5,265) 2,024
gain on other items
Realized foreign exchange loss on (1,114) (464)
other items
(7,533) 70,459
15 CASH FLOW INFORMATION
Period ended
Mar 31, Mar 31,
2010 2009
$`000 $`000
Changes in non-cash working capital
excluding business combinations:
Decrease accounts and other 11,203 24,150
receivables
Increase in inventories (5,719) (2,335)
Decrease in accounts payable and (5,669) (15,056)
accrued liabilities
(Decrease) / increase in income taxes (1,076) 1,830
payable
(1,261) 8,589
Supplemental cash flow information
Cash interest paid 564 386
Cash tax paid 4,235 9,787
16 BASIC AND DILUTED
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
Period ended
Mar 31, Mar 31,
2010 2009
Basic weighted-average number of 587,294 469,614
shares outstanding (`000)
Effect of dilutive securities:
-convertible debentures - 7,763
-restricted shares - 84
-stock options - 164
-warrants - -
Diluted weighted-average number of 587,294 477,625
shares outstanding
For the period ended March 31, 2010, 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.
17 FINANCIAL INSTRUMENTS
As at March 31, 2010: (in $`000)
Convertible JUMI 2010 2006
debentures Debenture Debenture Debenture
Liability component 136,513 199,324 147,503
Equity component 125,692 44,014 46,480
262,205 243,338 193,983
Fair value of N/A 245,536 141,663
convertible
debentures (1)
As at December 31, 2009: (in $`000)
Convertible 2006
debentures Debenture
Liability component 140,862
Equity component 46,480
187,342
Fair value of 131,668
convertible
debentures
(1) The fair value of the JUMI debenture is not determinable as it
was issued pursuant to a private placement and does not have a quoted
market price.
The Corporation`s activities expose it to a variety of financial
risks, including the effects of changes in debt and prices of equity
instruments held, foreign currency exchange rates, interest rates, and
commodity prices.
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.
17 FINANCIAL INSTRUMENTS (CONTINUED)
The Corporation is primarily exposed to foreign currency risk through
the following assets and liabilities denominated in currencies other
than US dollars:
Financial assets and liabilities Non-financial
assets
and
liabilities
Cash Account Account Conver Minera Future
and s s tible l income
cash receiva payable debent intere tax
equiva ble and ures sts liabil
lents accrued plant ities
liabili and
ties equipm
ent
(1)
March
31,
2010
$`000 $`000 $`000 $`000 $`000 $`000
Canadia 185,85 5,025 6,735 483,34 - -
n 0 0
dollar
Austral 27,399 665 4,107 - 91,618 4,176
ian
dollar
Kazakhs 6,751 22,082 40,497 - - 142,76
tan 5
tenge
Euro 125 - 1,244 - - -
220,12 27,772 52,583 483,34 91,618 146,94
5 0 1
Financial assets and liabilities Non-financial
assets and
liabilities
Decembe Cash Account Accoun Conver Minera Future
r 31, and s ts tible l income
2009 cash receiva payabl debent intere tax
equival ble e and ures st liabil
ents accrue plant ities
d and
liabil equipm
ities ent
$`000 (1)
$`000 $`000 $`000 $`000 $`000
Canadia 170 2,539 6,186 140,86 - -
n 2
dollar
Austral 22,071 1,571 4,369 - 78,039 4,074
ian
dollar
Kazakhs 3,496 28,981 37,761 - - 142,70
tan 4
tenge
Euro 41 - 9 - - -
South 674 - - - - -
African
rand
26,452 33,091 48,325 140,86 78,039 146,77
2 8
(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 March 31, 2010 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
A 10% appreciation in all foreign (3,326) 17,921
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.
17 FINANCIAL INSTRUMENTS (CONTINUED)
(ii) Interest rate risk
The Corporation is exposed to interest rate risk on its outstanding
borrowings and short-term investments. The Corporation has
outstanding interest-bearing borrowings as at March 31, 2010 which
include the loan facilities obtained by Kyzylkum and Karatau (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 fixed interest rates.
A 100 basis point change in the interest rate would impact the
Corporation`s net earnings as follows:
Mar 31, Dec 31,
2010 2009
$`000 $`000
A 100 basis point appreciation in
interest rates, with all other
variables
held constant 825 1,659
A 100 basis point depreciation in the interest rate would have the
exact opposite effect on net earnings.
18 SEGMENTED INFORMATION
The Corporation`s reportable operating segments are summarized in the
table below:
For the three months ended March 31, 2010: (in $`000)
Country Reven Opera Deprec Explo Net Capita
ues ting iation ratio earnin l
expen and n gs/ expend
ses deplet expen (loss) iture
ion se from
contin
uing
operat
ions
$`000 $`000 $`000 $`000 $`000 $`000
Akdala Mine Kazakhs 8,763 2,823 2,191 - 1,946 641
tan
South Inkai Kazakhs 21,17 9,715 6,259 - 205 2,993
Mine tan 5
Karatau Mine Kazakhs 5,591 1,632 4,015 - (1,584 1,396
tan )
Kharasan Kazakhs - - - - (2,603 1,525
Project tan )
United United - - - - 1,285 3,321
States States
development
projects
United United - - - 709 (763) -
States States
exploration
projects
United United - - - - (320) 8
States States
conventional
mining
projects
Honeymoon Austral - - - 69 56 11,033
Project ia
Corporate - - - 126 (19,72 49
and other 8)
Total 35,52 14,17 12,465 904 (21,50 20,966
9 0 6)
18 SEGMENTED INFORMATION (CONTINUED)
For the three months ended March 31, 2009: (in $`000)
Country Revenues Opera Deprecia Explora Net Capital
ting tion and tion earnings/ expen
expenses depletion expense (loss) diture
from
conti
nuing
opera
tions
$`000 $`000 $`000 $`000 $`000 $`000
Akdala Kazakh 18,410 (4,714) (4,145) - 15,211 175
Mine stan
South Kazakh 24,559 (10,297) (7,886) - 54,684 2,018
Inkai stan
Project
Kharasan Kazakh - - - - 12,900 2,581
Project stan
Dominion South - - - (221) (1,095) -
Project Africa
United United - - - - (12) 3,093
States States
develop
ment
projects
United United - - - (1,107) 354 -
States States
explora
tion
projects
Hobson United - - - - (791) -
Facility States
and La
Palangana
Project
United United - - - - (209) 20
States States
conven
tional
mining
projects
Honeymoon Australia - - - (190) (180) 2,047
Project
Corporate - - - (273) (17,506) 249
and other
Total 42,969 (15,011) (12,031) (1,791) 63,356 10,183
As at March 31, 2010: (in $`000)
Mineral Future
interest
plant Total income Total
and tax
Country equipmen assets liabili liabili
t ties ties
$`000 $`000 $`000 $`000
Akdala Mine Kazakhs 175,004 205,539 17,808 25,538
tan
South Inkai Mine Kazakhs 472,220 522,164 37,281 51,560
tan
Karatau Mine Kazakhs 505,400 540,033 75,341 129,598
tan
Kharasan Project Kazakhs 211,359 219,192 12,335 67,636
tan
United States United 179,307 179,824 - 6,826
development States
projects
United States United 117,504 117,732 37,420 37,451
exploration States
projects
United States United 39,923 47,336 8,494 11,602
conventional States
mining projects
Honeymoon Project Austral 91,618 101,866 4,176 7,443
ia
Corporate and 15,499 571,724 - 573,353
other
Total (1) 1,807,83 2,505,4 192,855 911,007
4 10
Excludes assets held for sale and discontinued operations
18 SEGMENTED INFORMATION (CONTINUED)
As at December 31, 2009: (in $`000)
Mineral Future
interest
plant and Total income tax Total
Country equipment assets liabilities liabilities
$`000 $`000 $`000 $`000
Akdala Mine Kazakhstan 179,706 214,121 18,231 24,004
South Inkai Kazakhstan 478,419 522,574 37,613 49,017
Project
Karatau Mine Kazakhstan 510,494 531,508 74,637 141,192
Kharasan Kazakhstan 208,830 217,800 12,223 66,433
Project
United States United 121,526 122,040 - 154
development States
projects
United States United 115,398 116,148 28,711 28,742
exploration States
projects
United States United 39,910 47,324 5,198 8,226
conventional States
mining projects
Honeymoon Australia 78,039 85,380 4,074 7,389
Project
Corporate and 15,962 240,752 - 330,106
other
Total (1) 1,748,284 2,097,647 180,687 655,263
Excludes assets held for sale and discontinued operations
19 SUBSEQUENT EVENTS
Subsequent to period end;
the Corporation sold Uranium One Africa Ltd. (note 3.2);
Karatau drew down $15 million on one of its bank loans, of which $7.5
million is attributable to the Corporation (note 4.1);
SKZ-U concluded a loan agreement with JBIC in the amount of $133
million to finance the construction of a sulphuric acid plant in
Kazakhstan and made the first drawdown of $53 million under the
facility in April 2010, of which $10 million is attributable to the
Corporation; and
The Corporation provided SKZ-U with a $31 million facility to finance
the construction of a sulphuric acid plant in Kazakhstan and the first
drawdown of $12 million was made in April 2010.
Sponsor
Nedbank Capital
10 May 2010
Date: 10/05/2010 13:52:01 Produced by the JSE SENS Department.
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