| Mon 21 Feb 2011, 10:15 | | FUM - First Uranium Corporation - First Uranium Corporation Financial Update |
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FUM
FIU
FUM - First Uranium Corporation - First Uranium Corporation Financial Update
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
FIRST URANIUM CORPORATION FINANCIAL UPDATE
All amounts are in US dollars unless otherwise noted.
This news release is intended for distribution in Canada only and is not
intended for distribution to United States newswire services or dissemination in
the United States.
Toronto and Johannesburg: First Uranium Corporation (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium" or the "Company") reported today that in
connection with its previously announced financing by way of short form
prospectus, the prospectus will include a projection in respect of the future
financial condition of the Company including the information below. All
information included below is based on the Company`s current expectations.
The following forecast of consolidated earnings (the "Forecast") contains
forward_]looking information and was prepared by management. The Forecast is
based on assumptions that reflect management`s best judgment of the most
probable set of economic conditions and the Corporation`s planned course of
action as of February 17, 2011. Actual results may vary from the
forward_]looking information provided. Any Management Discussion & Analysis
issued by the Corporation to its shareholders during the forecast period will
contain a revised forecast accompanied by explanations if actual results differ
significantly from the Forecast.
FIU CONSOLIDATED
(000`s)
end Mar `11 end June end Sept end Dec end Mar
`11 `11 `11 `12
MWS: Cash 12,032 16,295 7,444 8,619 13,873
generated from
operations
MWS capital (17,816) (12,649) (7,093) (337) (143)
expenditures
Ezulwini: Cash (9,449) (3,823) (411) 4,964 10,098
(utilized in)
generated from
operations(1)
Ezulwini capital (5,236) (6,580) (6,677) (5,938) (4,927)
expenditures
FIU corporate (2,875) (2,726) (3,726) (2,726) (2,726)
expenditures
Interest on (7,301) (3,156) (7,301) (3,156) (7,147)
convertible
debentures
Cash movement (30,646) (12,639) (17,765) 1,427 9,027
for the quarter
Minimum proceeds 46,000
from financing
raise(2)
Less: estimated (2,675)
financing
transaction
costs
Opening balance 29,979 42,658 30,019 12,254 13,681
Closing Balance 42,658 30,019 12,254 13,681 22,708
COMMODITY AND EXCHANGE RATE
ASSUMPTIONS
Gold price US$/oz 1380 1390 1390 1390 1390
Uranium price 65 65 65 65 65
US$/lb
Gold price ZAR/kg 301,703 303,889 303,889 303,889 303,889
ZAR/US$ exchange 6.80 6.80 6.80 6.80 6.80
rate
Notes:
(1) assuming 90% of Ezulwini`s planned gold production is achieved.
(2) assuming US$1 = Cdn$1
ASSUMPTIONS:
In addition to assumptions with respect to commodity and exchange rates set out
above, specific assumptions have been made in connection with the financial
forecast disclosed above, including:
(1) MWS -
* The hydraulic mining, milling throughput and recoveries will meet planned
levels.
* Tonnage and grade will be consistent with published mineral reserve and
resource estimates.
* Successful construction and commissioning of the Phase 2 gold plant and new
tailings storage facility.
* With major capital items procured, the cost budget estimates for the remaining
capital program for the Phase 2 gold plant and tailings storage facility are
accurate.
* Satisfaction of the Gold Wheaton Construction and Technical Completion Test.
* Results are sensitive to capital and operating costs and fluctuations in such
costs.
* Detailed information in respect of the production amounts, operating
expenditures and capital expenditures in connection with the MWS Project can be
found at the following pages of the MWS Technical Report: 96 _] 110, 125 _] 130
and 131 _] 132 and at pages 5, 6 and 14 of the Interim MD&A.
(2) Ezulwini -
* The production figure assumes 90% of planned production is achieved.
* Ezulwini mining and milling production will meet planned levels.
* Tonnage and grade will be consistent with published mineral resource
estimates.
* With the bulk of the construction expenditures now complete, the capital
expenditure estimates for the ongoing mine development and sustaining capital
costs are accurate. Results are sensitive to capital and operating costs and
fluctuations in such costs.
* Results are sensitive to capital and operating costs and fluctuations in such
costs.
* Results assume that Ezulwini`s ramp up progresses as planned.
* Detailed information in respect of the production amounts, operating
expenditures and capital expenditures in connection with the Ezulwini Mine can
be found at the following pages of the Ezulwini Technical Report: 18_]16 -
18_]17, 18_]20, 18_]26, 18_]34 - 18_]36 and 18_]38 to 18_]47.
(3) General -
* Commodity and exchange rate price assumptions are as set out above.
* Applicable taxes due are assumed to be consistent with current tax levels.
* Transaction costs have been assumed for the size of the Offering.
* The corporate expenditures of the Corporation are comprised of the estimated
quarterly general,
administrative and consulting costs incurred by the corporate offices in Canada
and South Africa over the respective periods. The interest on convertible
debentures relates to the interest payable of 4.25% on the senior unsecured
convertible debentures (the "Debentures") issued in May 2007, 7% on the secured
Canadian Notes and 11% on the Rand Notes issued in April 2010. The interest on
the Debentures is payable semi_]annually at the end of June and December. The
interest on the Notes is payable semi_]annually at the end of March and
September.
* The US$61.6 million contractual obligations payable over the next twelve
months as disclosed under the Commitments and Contingencies section of the MD&A
for the three months ended December 31, 2010 have been incorporated into the
cash forecast table as follows:
* The interest on the Debentures of US$6.4 million and interest on Notes of
$14.8million.
totalling US$21.2 million.
* The derivative liability of US$19.6 million relates to the calendar 2011
guaranteed ounces that Ezulwini is obliged to deliver to Gold Wheaton
pursuant to the Ezulwini Gold Stream Agreement. Ezulwini receives US$400/oz
for the guaranteed ounces. The revenue from
Ezulwini in the cash flow forecast incorporates the revenue from gold
delivered to Gold Wheaton at US$400 per ounce.
* The purchase obligations of US$20.5 million relate to capital commitments
at Ezulwini and MWS respectively and have been factored into the capital
expenditures of Ezulwini and MWS in the cash flow forecast.
* Capital lease obligations amounting to US$0.38 million have been
incorporated in the FIU corporate expenditures in the cash flow forecast.
About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on its goal of becoming
a low_]cost producer of gold and uranium through the expansion of the
underground development to feed the new gold and uranium plants at the Ezulwini
Mine and through the expansion of the plant capacity of the Mine Waste Solutions
(MWS) tailings recovery facility, both operations situated in South Africa.
First Uranium also plans to grow production by pursuing value_]enhancing
acquisition and joint venture opportunities in South Africa and elsewhere.
For further information, please contact:
Julian Gwillim, julian@aprio.co.za
Gail Strauss, gailstrauss@mweb.co.za
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 are forwardlooking statements (or forward-looking
information). The Company`s plans involve various estimates and assumptions and
its business and operations are subject to various risks and uncertainties. For
more details on these estimates, assumptions, risks and uncertainties, see the
Company`s most recent Annual Information Form and most recent Management
Discussion and Analysis on file with the Canadian provincial securities
regulatory authorities on SEDAR at www.sedar.com. These forwardlooking
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.
www.firsturanium.com
21 February 2011
Sponsor: Investec Bank Limited
Date: 21/02/2011 10:15:02 Produced by the JSE SENS Department.
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