| Mon 15 Nov 2010, 13:11 | | UUU - Uranium One INC - Uranium One Announces Record Sales of 1.7 Million Pounds |
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UUU
UUU
UUU - Uranium One INC - Uranium One Announces Record Sales of 1.7 Million Pounds
and Lower Cash Costs
URANIUM ONE INC
(Incorporated in Canada)
(Registration number 15096422420)
Share Code on the JSE: UUU & ISIN Number: CA91701P1053
Share Code on the TSX: UUU & ISIN Number: CA91701P1053
News Release
November 15, 2010
Uranium One Announces Record Sales of 1.7 Million Pounds and Lower Cash Costs
Vancouver, British Columbia - Uranium One Inc. ("Uranium One") today reported
record quarterly sales of 1.7 million pounds, production of 1.7 million pounds
and a decrease in total cash costs at its operations to $12 per pound sold
during the third quarter of 2010. Uranium One`s 2010 production guidance
remains 7.0 million pounds. The Company`s production guidance for 2011 is 10.5
million pounds and 12.5 million pounds for 2012.
Q3 2010 Highlights
Operational Results
* Attributable production during Q3 2010 of 1.75 million pounds was 109%
higher than total attributable production of 834,800 pounds during Q3
2009.
* The average total cash cost decreased by 20% to $12 per pound sold
during Q3 2010, compared to the average total cash cost of $15 per
pound sold during Q3 2009.
* An operating license was issued by the NRC for the Moore Ranch in-situ
uranium project in September 2010; this is the first new license
granted by the NRC for the development of a new ISR operation since
1998.
Financial Results
* Record attributable sales volumes of 1.7 million pounds for Q3 2010,
an increase of 302% compared to 423,100 pounds sold during Q3 2009 and
an increase of 12% compared to 1.5 million pounds sold during Q2 2010.
Attributable sales volumes during October were 740,700 pounds.
* Revenue increased by 243% to $73.1 million in Q3 2010, compared to
$21.3 million in Q3 2009. The average realized sales price was $43
per pound during Q3 2010.
* Earnings from mine operations increased by 197% to $27.9 million
during Q3 2010 compared to earnings from mine operations of $9.4
million in Q3 2009. The increase was primarily due to an increase in
the pounds sold, partially offset by a decrease in the average
realized sales price per pound.
Corporate
* The ARMZ transaction is anticipated to be completed before the end of
2010, subject to receipt of one remaining regulatory approval (from
the US Nuclear Regulatory Commission, which is expected to be received
by the end of November 2010).
* On the initial closing of this transaction, Uranium One will issue 178
million new common shares to ARMZ for US$610 million in cash, after
which a special dividend of US$1.06 per share will be declared and
paid to all shareholders other than ARMZ; on the final closing,
Uranium One will issue a further 178 million common shares to ARMZ in
exchange for its joint venture interests in Akbastau and Zarechnoye.
Jean Nortier, President and CEO of Uranium One commented:
"Uranium One continues to deliver strong operational results from our assets in
Kazakhstan. At a time when there is renewed interest in the uranium space, our
shareholders are set to benefit from the Company`s unhedged sales contract
portfolio, excellent production growth profile, industry-leading low cash costs
and strong partnerships in the nuclear industry. Our transaction with ARMZ
remains on track for completion by the end of 2010 and we look forward to
capitalizing on the new opportunities that this transaction will bring to
Uranium One."
Guidance Update
Production
During the remainder of 2010 and in 2011, Uranium One is focused on maintaining
production from Akdala at current levels, ramping up production at Karatau and
South Inkai towards a level of 5.2 million pounds (2,000 tonnes U) in 2011,
successfully commissioning its development projects, controlling costs at its
operations and remaining a reliable supplier of U3O8 to the nuclear fuel
industry. The Corporation`s total attributable production guidance for 2010
remains unchanged at 7.0 million pounds.
Assuming the completion of the acquisition of the joint venture interests in the
Akbastau and Zarechnoye uranium mines by the end of 2010, Uranium One`s
attributable production estimate for 2011 is 10.5 million pounds and is broken
down as follows:
Sponsor
Nedbank Capital
Date: 15/11/2010 13:11:01 Produced by the JSE SENS Department.
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