For the Management Discussion & Analysis and Financial Statements please
refer to the Corporation's website at www.firsturanium.com.
TORONTO AND JOHANNESBURG, Nov. 12, 2012 /CNW/ - First Uranium
Corporation (NEX:FIU.H) (JSE:FUU) (ISIN:CA33744R5047) ("First Uranium"
or "the Corporation") today announced its financial results for the
three and six months ended September 30, 2012.
April 1, 2011 - June 30, 2011
April 1, 2012 - June 30, 2012
July 1, 2011 - September 30, 2011
July 1, 2012 - September 30, 2012
April 1, 2011 - March 31, 2012
April 1, 2012 - March 31, 2013
April 1, 2011 - September 30, 2011
April 1, 2012 - September 30, 2012
During the second quarter of FY 2013, the Corporation disposed of its
two principal assets and utilized a substantial portion of the proceeds
raised to redeem in full the 7% secured convertible notes (the
"Canadian Notes") and the 11% secured convertible notes (the "Rand
Notes"), repay the loan from Gold One International ("Gold One") and
repay 95% of principal amount of the 4.25% unsecured convertible
debentures (the "Debentures"). Subsequently, the Debentures were
delisted from the TSX.
Upon the disposal of First Uranium's principal assets, the Corporation
effected a change of business according to the rules of the Toronto
Stock Exchange ("TSX"). As a result of such change in business, the
Corporation no longer met the original listing requirements, and
decided to voluntarily delist from the TSX; however, to maintain
liquidity in the Units and to remain a "public corporation", it applied
for listing on the NEX Exchange, a separate board of the TSX Venture
Exchange that provides a trading forum for listed companies that have
low levels of business activity or have ceased to carry on an active
business. The Units were delisted from the TSX at the close of the
market on August 31, 2012 and the Units commenced trading on the NEX
(FIU.H) on September 4, 2012.
After the Corporation's Units were listed on the NEX and upon meeting
the requirements for notice of record dates and payment dates of the
NEX and the JSE Limited, the Corporation made an initial distribution
(the "Distribution") on October 1, 2012 of Cdn$0.125 (ZAR1.05) per unit
to shareholders of the Corporation in the form of a redemption of 12.5
Class A Special Shares at a price per share of Cdn$0.01 (ZAR0.08402).
Each Unit is currently comprised of 87.5 Class A Special Shares and 1
Class B Common Shares. The number of Units outstanding was unchanged
following the initial distribution.
Once the escrow funds are released in accordance with the respective
sale agreements with AngloGold Ashanti Limited and Gold One, the
settlement of all remaining obligations to the Debenture holders and
the establishment of a reserve for any continuing and contingent
obligations, the Board will determine an additional amount to be
distributed to the holders of the Units.
Results for Q2 2013 and 2013 YTD
The Corporation reported losses from its continuing operations of $5.6
million and $16.0 million in Q2 2013 (Q2 2012: $15.9 million) and 2013
YTD (2012 YTD: $28.2 million), respectively.
The Corporation also reported profits from its discontinued operations
of $74.3 million and $108.6 million in Q2 2013 and 2013 YTD,
respectively, compared to losses of $13.4 million in Q2 2012 and $33.2
million in 2012 YTD. The primary drivers for the improvements over
comparative periods were the $78.9 million profit on disposal of the
Corporation's principal assets during Q2 2013 and 2013 YTD along with
the derivative income related to the discontinued operations' Gold
Stream Transactions of $35.0 million recognized in Q1 2013 compared to
a derivative expense recognized in Q2 2012 and 2013 YTD of $42.4
million and $64.7 million, respectively.
The Corporation (including discontinued operations) utilized $14.1
million and $10.1 million cash from its operations in Q2 2013 (Q2 2012:
$4.4 million) and 2013 YTD (2012 YTD: 9.9 million). The Corporation
utilized $4.3 million and $6.9 million during Q2 2013 (Q2 2012: $6.6
million) and 2013 YTD (2012 YTD: $22.4 million) on capital projects at
its discontinued operations. During Q2 2013, the Corporation raised
$388.4 million net cash proceeds from the disposal of its principal
assets and used a substantial portion of the cash proceeds raised
($317.3 million) to settle the Cdn$110 million Canadian Notes ($109.0
million), the ZAR418.6 million Rand Notes ($51.5 million), the $10
million Gold One loan facility and Cdn$145.5 million ($146.8 million)
of the Cdn$150 million principal amount of Debentures outstanding.
As at September 30, 2012, current assets were $65.2 million (March 31,
2012: $4.2 million), of which $60.3 million were restricted cash. The
restricted cash comprised of $30.0 million related to the deferred
payments pursuant to the Transactions and $30.3 million related to the
initial distribution to shareholders on October 1, 2012.
The Corporation's current liabilities amounted to $5.8 million at the
end of Q2 2013 (March 31, 2012: $268.8 million) and consisted of $3.9
million related to the maximum principal amount of Cdn$4.5 million
remaining outstanding of the Debentures, $1.5 million tax payable
provision and $0.4 million trade and other payables. The $3.9 million
liability related to the Debentures reflected the present value of the
remaining principal amount outstanding of the Debentures as at
September 30, 2012.
The Corporation believes that in addition to conventional measures
prepared in accordance with IFRS, the Corporation and certain investors
and analysts use certain other non-IFRS financial measures to evaluate
the Corporation's performance including its ability to generate cash
flow and profits from its operations. The Corporation has included
certain non-IFRS measures in this document. Non-IFRS measures do not
have any standardized meaning prescribed under IFRS, 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 IFRS. Readers are advised to
read all IFRS accounting disclosures presented in the Corporation's
Financial Statements for more detail.
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
forward-looking statements (or forward-looking information). The
Corporation'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 Corporation'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 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
SOURCE: First Uranium Corporation
For further information:
Mary Batoff, +1 416 306 3072 or email@example.com