| Mon 21 Jun 2010, 8:31 | | FUM - First Uranium Corporation - First Uranium reports production and financial |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium reports production and financial
results for the three and twelve months ended March 31, 2010
First Uranium Corporation
(Continued under the laws of British Columbia, Canada)
(Registration number C0777384)
(South African registration number 2007/009016/10)
Share code: FUM
ISIN: CA 33744R1029
NEWS RELEASE - June 18th __, 2010
FIRST URANIUM REPORTS PRODUCTION AND FINANCIAL RESULTS FOR THE THREE AND TWELVE
MONTHS ENDED MARCH 31, 2010
All amounts are in US dollars unless otherwise noted.
The Management Discussion & Analysis ("MD&A") for FY 2010 has been appended to
this release.
For the F2010 Financial Statements, please see the Company`s website,
www.firsturanium.com under "Investor Centre / Annual Reports".
Toronto and Johannesburg - First Uranium Corporation (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium" or "the Company") today announced its
financial
results for the three- and twelve-month periods ended March 31, 2010 ("Q4 2010"
and "FY
2010", respectively). References to "Q1 2011" refer to the Company`s three-month
period ending June 30, 2010.
HIGHLIGHTS
Key developments in Q4 2010 and Q1 2011 to-date include:
- Environmental authorization ("EA") for the new Tailings Storage Facility
("TSF) at Mine Waste Solutions ("MWS") reinstated;
- Successful recapitalization program raises cash proceeds of C$150 million;
- Penalty payment of $42 million and completion tests under MWS gold stream
transaction restructured and outstanding loan to Simmer & Jack Mines,
Limited ("Simmer and Jack"), settled;
- Deon van der Mescht appointed President and Chief Executive Officer of the
Company ("CEO");
- Long-awaited new order water user license ("WUL") for MWS granted by the
Department of Water Affairs ("DWA") on the June 15, 2010;
- Transfer of the new order mining right pertaining to the Ezulwini Mine from
Simmer and Jack to the Ezulwini Mining Company was registered; and
- Sale of first shipment of uranium out of Ezulwini Mine.
The financial crisis that was precipitated by the unexpected withdrawal of the
EA for the new TSF at MWS early in January 2010, was resolved during the quarter
with the re-instatement of the EA, and the conclusion of a recapitalization
program in April 2010 which resulted in a cash injection of C$150 million. As
part of the recapitalization program, the board and management were also
restructured resulting in the appointment of Deon van der Mescht as President
and CEO of First Uranium, and Peter Surgey as Chairman of the Board.
On the permitting front, the long-awaited WUL for the MWS project was granted on
June 15, 2010 by the DWA, which concludes the major permitting issues
surrounding this project. Additionally, the Department of Mineral Resources
(DMR) registered the transfer of the new order mining right for Ezulwini Mine
from Simmer and Jack to the Ezulwini Mining Company.
Post the recapitalization, Ezulwini Mine continues to ramp up production. The
new management team at the mine is focused on completing a detailed review of
the mine plan by July 2010. During FY 2010, 26,965 ounces of gold were sold from
the Ezulwini Mine and its first shipment of 22,500 pounds of uranium was sold in
Q4 2010.
Although the gold production at MWS had been negatively impacted by the
withdrawal of the EA, gold recoveries continued to improve through the year,
allowing the operation to return in excess of 100% cash operating margins.
During FY 2010, 62,019 ounces of gold were sold from MWS which exceeded the
mine`s plan.
"While the quarter got off to a disappointing start, I am pleased to report that
the initial problems have largely been resolved thanks to the successful
recapitalization program and the fact that two key permits for MWS, namely the
EA and the Water Use License were reinstated and granted, respectively. This
effectively gives the green light to accelerate the expansion program of this
highly profitable operation" commented Deon van der Mescht, President and Chief
Executive Officer of First Uranium. "Now that these uncertainties have been
addressed, we will be able to deliver value to our shareholders by meeting our
near-term production goals, with careful control of the costs."
The following table provides a brief review of the Company`s performance:
Overview
Q4 2010 Q4 2009 FY 2010 FY 2009
Ezulwini Mine
Tonnes Milled (000) 130 109 425 233
Ounces of Gold Sold(a) 8,327 4,267 26,965 10,678
Average Selling Price per Ounce ($) 1,404 917 1,149 920
Average Cash Cost per Ounce($)(b) 2,929 2,032 2,858 1,941
Pounds of Uranium Produced 20,638 - 44,399 -
Pounds of Uranium Sold 22,500 - 22,500 -
Mine Waste Solutions
Tonnes Reclaimed (000) 3,232 1,693 11,071 6,995
Average Gold Recovery Grade(g/t) 0.19 0.19 0.19 0.19
Percentage Gold Recovered 56% 46% 51% 47%
Ounces of Gold Sold 18,505 10,417 62,019 42,857
Average Selling Price per Ounce ($) 889 948 985 881
Average Cash Cost per Ounce($)(b) 402 379 392 397
Summary of Consolidated Financial
Results
(in thousands of dollars, except per
share amounts)
Revenue
Ezulwini Mine(a) 12,104 3,915 31,393 9,825
MWS 16,457 9,872 61,067 37,771
28,561 13,787 92,460 47,596
Cost of Sales (including amortization)
Ezulwini Mine(a) (26,330) (8,829) (82,269) (20,883)
MWS (10,162) (4,288) (27,827) (17,933)
(36,492) (13,117) (101,789) (38,816)
Gross (loss) profit
Ezulwini Mine (14,226) (4,914) (50,876) (11,058)
MWS 6,295 5,584 33,240 19,938
(7,931) 670 (17,636) 8,780
Operating loss(c) (15,904) (5,668) (47,100) (17,247)
Loss for the period (26,041) (10,722) (92,178) (16,342)
Basic and diluted loss per common (0.14) (0.08) (0.56) (0.12)
share
Cash flow (utilized in) generated from 13,515 (11,005) (34,855) (11,745)
operations
Cash flow from investing activities (31,646) (36,913) (229,665) (211,896)
Cash flow from financing activities - 120,907 162,692 170,907
Notes:
(a) For the six months ended September 30, 2009, the costs of production
from the Ezulwini Mine were capitalized and related proceeds of sales
credited against capital. Thereafter, the gold processing plant at the
Ezulwini Mine was regarded as ready for commercial use from an
accounting perspective, and accordingly, from October 1, 2009 the
revenues and related costs derived from the gold processing plant were
included in the Company`s financial results.
(b) Cash cost per Ounce is defined as total cash costs divided by ounces
of gold sold. Total cash costs exclude amortization expense and
inventory purchase accounting adjustments. For further information on
this non-GAAP performance measure see page 14 of the Company`s FY 2010
MD&A.
(c) This is a non-GAAP measurement. Operating loss is loss before interest
income, interest and accretion expenses, fair value gain or loss on
derivative liability, foreign exchange gain or loss and income tax
charges.
The information contained in this news release is qualified in its entirety by
the information contained in the Company`s audited consolidated financial
statements for the year ended March 31, 2010 and the related MD&A.
Financial Results: Release and Conference Call
First Uranium will conduct a conference call with investors to discuss the
information in this news release at 10 a.m. local Toronto time and 4 p.m. local
Johannesburg time on Tuesday 22nd June, 2010.
The conference call will be available simultaneously to all interested analysts,
investors and media. Callers may dial 1 800 319-4610 (Canada and the US) or 0800
981 705 (South Africa). Callers from other international locations may call +1
604 638-5340.
The call will be webcast at
https://services.choruscall.com/links/firsturanium100622.html and available for
replay shortly after the call for 90 days.
A telephone replay of the conference call will be available for 30 days. To
access the replay, callers may dial 1 800 319-6413 (Canada and the US). Callers
from other international locations may access the replay by dialing +1 604 638-
9010 (Canada). Access to the replay will require the code 2128, followed by #.
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on its goal of becoming
a significant low-cost producer of uranium and gold through the expansion of the
underground development to feed the new uranium and gold plants at the Ezulwini
Mine and through the expansion of the plant capacity of the Mine Waste Solutions
tailings recovery facility, both operations situated in South Africa.
For further information, please contact:
Jim Fisher Executive Vice President Corporate Development at jim@firsturanium.ca
+1 (416) 342 5636 (Office) +1 (416) 294 2450 (Mobile)
Suite 1240 - 155 University Avenue, Toronto, Ontario, Canada M5H 3B7
Cautionary Language Regarding Forward-Looking Information
This news release contains and refers to forward-looking information based on
current expectations. All other statements other than statements of historical
fact included in this release including, without limitation, statements
regarding the timing and amount of estimated future production, processing and
development plans and future plans and objectives of First Uranium are forward-
looking statements (or forward-looking information) that involve various
estimates, assumptions, risks and uncertainties. For more details on these
estimates, assumptions, risks and uncertainties, see the Company`s most recent
Annual Information Form on file with the Canadian provincial securities
regulatory authorities on SEDAR at www.sedar.com. These forward-looking
statements are made as of the date hereof and there can be no assurance that
such statements will prove to be accurate, such statements are subject to
significant risks and uncertainties, and 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 that are
included herein, except in accordance with applicable securities laws.
Non-GAAP Measures
The Company believes that in addition to conventional measures prepared in
accordance with Canadian GAAP, the Company and certain investors and analysts
use certain other non-GAAP financial measures to evaluate the Company`s
performance including its ability to generate cash flow and profits from its
operations. The Company has included certain non-GAAP measures in this document.
Non-GAAP measures do not have any standardized meaning prescribed under Canadian
GAAP, and therefore they may not be comparable to similar measures employed by
other companies. The data is intended to provide additional information and
should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with Canadian GAAP. Readers are advised to
read all GAAP accounting disclosures presented in the Company`s financial
statements for more detail.
Date: 21/06/2010 08:31:01 Produced by the JSE SENS Department.
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