| Tue 14 Nov 2006, 16:01 | | SXR Uranium One Inc - Uranium One announces financ |
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SXR
SXR
SXR Uranium One Inc - Uranium One announces financial results for Q3 2006
SXR Uranium One Inc
(Formerly Southern Cross Resources Inc.)
(Incorporated in Canada)
(Registration number: 15096422420)
Share code on the JSE: SXR & ISIN: CA87112P1062
Share code on the TSX: SXR & ISIN: CA87112P1062
("Corporation")
Trading Symbol: SXR - Toronto Stock Exchange, JSE Limited (Johannesburg Stock
Exchange)
NEWS RELEASE
Uranium One Announces Financial Results for Q3 2006
Toronto, Ontario and Johannesburg, South Africa -- sxr Uranium One Inc.
("Uranium One") today reported unaudited financial results for the three and
nine months ended September 30, 2006. All figures are in US dollars unless
otherwise indicated. Complete details of the September 30, 2006 financial
statements can be found on Uranium One"s website at www.uranium1.com and will
be made available on SEDAR at www.sedar.com.
Financial highlights for the quarter include the following:
- net profit of $2.4 million or $0.02 per share for the third quarter,
compared to a net loss of $20.0 million or $0.18 per share for the second
quarter
- gold sales of $0.7 million compared to $0.9 million during the second
quarter, as the focus shifts to integrating the Bonanza gold plant with
the Dominion uranium processing plant
- general and administrative expenditure of $3.7 million compared to $4.5
million in the second quarter, reflecting continuing corporate
development activities in the western United States
- interest income of $1.1 million during the quarter compared to $1.5
million in the second quarter
- an increase in value of property, plant and equipment to $232.8 million
at quarter end (from $208.9 million at June 30, 2006), reflecting
construction progress at Dominion
- raising of $45.5 million on August 30, 2006 under a futures-related term
facility with Nedcor Securities
- cash balances rose to $98.2 million at September 30, 2006 from $88.9
million at June 30, 2006
Operational highlights for the third quarter include:
- completion of positive feasibility studies for the Dominion Uranium
Project, the Honeymoon Uranium Project and the Modder East Gold Project
- commencement of cold commissioning at Dominion on August 30, 2006, three
months ahead of schedule, with the project continuing on track for hot
commissioning in Q1 of 2007
- board approval for the implementation of the Honeymoon Uranium Project,
an ISL project in South Australia with an annual production rate of 400
tpa U3O8 equivalent, an estimated capital cost of $35.9 million and first
uranium production scheduled for 2008
- continued construction progress at Modder East, an underground gold mine
with a planned production of 948,290 ounces of gold over a ten year
period and estimated capital expenditure of $107.8 million to the start
of production in 2009
- execution of separate exclusivity agreements with Rio Tinto Energy
America and U.S. Energy Corp. for the negotiation of purchase agreements
for the Sweetwater Uranium Mill and related uranium properties in
Wyoming, and the Shootaring Canyon Uranium Mill in Utah and related
uranium properties in Utah, Wyoming, Arizona and Colorado
Subsequent to quarter end, the South African regulatory authorities formally
issued a "new order" mining right for the Dominion Uranium Project, covering
all of the resources in the Company"s existing 14,000 hectare area prospecting
right. In addition, on October 31, 2006, Uranium One completed a bought deal
public offering of 20,815,000 common shares at a price of Cdn $8.30 per share,
for gross proceeds of Cdn $172,764,500 (approximately $154 million). The net
proceeds of the offering will be used to finance construction at Dominion and
Honeymoon, for exploration activities and general corporate purposes.
Commenting on Uranium One"s progress, Neal Froneman, President and CEO said:
"During the quarter, we completed positive feasibility studies on all three of
our principal projects, and continued to progress towards our objective of
production of uranium at Dominion in Q1 of 2007 and at Honeymoon in 2008. As
per our strategy we also began to lay the foundations for our expansion into
the United States, concluding exclusivity agreements to negotiate the purchase
of two of that country"s only four remaining uranium mills. By design we are
an un-hedged and un-capped uranium miner. With production coming on stream in
a matter of months, we are well placed to benefit from the recent sharp rise
in the spot and term uranium price. We expect that the uranium price
environment will continue to be favourable."
About sxr Uranium One
sxr Uranium One Inc. is a Canadian uranium and gold resource company with a
primary listing on the Toronto Stock Exchange and a secondary listing on the
JSE Limited (the Johannesburg stock exchange). The Corporation owns the
Dominion Uranium Project in South Africa and the Honeymoon Uranium Project in
South Australia, and is actively pursuing growth opportunities in the uranium
sector in the western United States. The Corporation holds an approximate
71.6% interest in Aflease Gold Limited, which owns the Modder East Gold
Project in South Africa. Through a joint venture with Pitchstone Exploration
Ltd., the Corporation is also engaged in uranium exploration activities in the
Athabasca Basin of Saskatchewan.
November 14, 2006
SXR Uranium One Inc.
390 Bay Street, Suite 1610
Toronto, Ontario M5H 2Y2
For further information, please contact:
Jean Nortier Chris Sattler
Chief financial Officer Vice President, Investor Relations
Tel: + 27 11 482-3605 Tel: +1 416 350-3657
Cautionary Statement
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
This News Release includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and "forward-
looking information" within the meaning of applicable Canadian legislation.
All statements other than statements of historical fact included in this
release including, without limitation, statements regarding future plans and
objectives of Uranium One and the timing of commencement of construction
activities, are forward-looking statements (or forward-looking information)
that involve various risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Important
factors could cause actual results to differ materially from Uranium One"s
expectations. Such factors include, among others, the actual results of
exploration activities, actual results of reclamation activities, the
estimation or realization of mineral reserves and resources, the timing and
amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of new deposits,
availability of capital required to place Uranium One"s properties into
production, conclusions of economic evaluations, changes in project parameters
as plans continue to be refined, future prices of commodities, possible
variations in ore grade or recovery rates, failure of plant, equipment or
processes to operate as anticipated, accidents, labour disputes and other
risks of the mining industry, delays in obtaining governmental approvals,
permits or financing or in the completion of development or construction
activities, Uranium One"s hedging practices, currency fluctuations, title
disputes or claims limitations on insurance coverage, as well as those factors
discussed under "Risk Factors" in Uranium One"s Annual Information Form,
Management"s Discussion and Analysis for the third quarter of 2006 and Uranium
One"s (final) short form prospectus dated October 26, 2006 as filed with
securities regulatory authorities in Canada. Although Uranium One has
attempted to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results not to be as
anticipated, estimated or intended.
There can be no assurance that such 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 does not undertake to
update any forward-looking statements that are included herein, except in
accordance with applicable securities laws.
Investors are cautioned not to assume that all or any part of the mineral
deposits in the measured and indicated resource categories will ever be
converted into reserves. In addition, "inferred resources" have a great amount
of uncertainty as to their existence and economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral resource will be
ever be upgraded to a higher category. Under Canadian rules, estimates of
inferred mineral resources may not form the basis of feasibility or pre-
feasibility studies or economic studies except for preliminary assessments as
defined under NI 43-101. Investors are cautioned not to assume that all or any
part of an inferred resource exists or is economically or legally mineable.
To receive the Corporation"s news releases by email, please register on
Uranium One"s website - www.uranium1.com.
Date: 14/11/2006 04:01:20 PM Produced by the JSE SENS Department
