Uranium One Announces Record Quarterly and Annual Production and Sales,
Completion of C$270 Million Financing with JUMI Consortium and Receipt of
US$20 Million Dividend from its Betpak Dala Joint Venture
Highlights Production - 42% increase in quarterly attributable production for Q4 2009, to a record 1.2 million lbs U(3)O(8), from 0.8 million lbs produced in Q3 2009 - 24% increase in annual attributable production for 2009, to a record 3.6 million lbs U(3)O(8), compared to 2.9 million lbs produced in 2008 Sales - 254% increase in quarterly sales volumes for Q4 2009, to a record 1.5 million lbs U(3)O(8), compared to 0.4 million lbs during Q3 2009 - 44% increase in annual attributable sales volumes for 2009, to a record 3.2 million lbs U(3)O(8), compared to 2.2 million pounds during 2008 Convertible Debenture Closing - Completion of convertible debenture financing with Japanese consortium and receipt of aggregate proceeds of C$270 million on January 14, 2010 Dividends - Payment of dividend by Betpak Dala Joint Venture and receipt by Uranium One of US$20 million in December 2009 Karatau and Christensen Ranch Acquisitions; Sale of Texas Assets - Completion in December 2009 of the acquisition and registration of Uranium One's 50% interest in the Karatau Uranium Mine - Receipt of all regulatory approvals required in connection with the acquisition of Christensen Ranch and Irigaray in Wyoming; closing expected by January 31, 2010 - Completion in December 2009 of the sale of the Company's Texas assets to Uranium Energy Corp. ("UEC") for 2.5 million restricted common shares of UEC
Production
Attributable production during 2009 from Akdala, South Inkai and Kharasan was 3.5 million pounds U(3)O(8), in line with the Company's guidance for the year. Including production from Karatau from
During the fourth quarter of 2009, attributable production was 1.2 million pounds U(3)O(8), the highest quarterly production in the Company's history and a 42% increase over production of 0.8 million pounds achieved during the third quarter of 2009.
Uranium One's attributable production for the fourth quarter and for the full year 2009 is shown below.
Table 1 - Uranium One Attributable Production (lbs U(3)O(8)) ------------------------------------------------------------------------- Q4 2009 Fiscal Year 2009 ------------------------------------------------------------------------- Akdala 531,500 1,890,300 ------------------------------------------------------------------------- South Inkai 547,000 1,511,800 ------------------------------------------------------------------------- Kharasan 28,200 81,700 ------------------------------------------------------------------------- Sub-total 1,106,700 3,483,800 ------------------------------------------------------------------------- Karatau(1) 75,400 75,400 ------------------------------------------------------------------------- Total 1,182,100 3,559,200 -------------------------------------------------------------------------
(1) Attributable production from Karatau Joint Venture commencing
Sales
Attributable sales volume during 2009 from Akdala and South Inkai was 2.9 million pounds U(3)O(8). Including sales from Karatau from
During the fourth quarter of 2009, attributable sales volume was 1.5 million pounds U(3)O(8), the highest quarterly sales volume in the Company's history, representing a 254% increase in sales compared to 0.4 million pounds during the third quarter of 2009.
A breakdown of Uranium One's attributable sales volumes for the fourth quarter and for the full year 2009 is shown below.
Table 2 - Uranium One Attributable Sales Volumes (lbs U(3)O(8)) ------------------------------------------------------------------------- Q4 2009 Fiscal Year 2009 ------------------------------------------------------------------------- Akdala 710,300 1,535,000 ------------------------------------------------------------------------- South Inkai 535,700 1,399,800 ------------------------------------------------------------------------- Sub-total 1,246,000 2,934,800 ------------------------------------------------------------------------- Karatau(1) 252,900 252,900 ------------------------------------------------------------------------- Total 1,498,900 3,187,700 -------------------------------------------------------------------------
(1) Attributable sales volume from Karatau Joint Venture commencing
Operations Summary
Akdala Uranium Mine
Attributable production from Akdala during the fourth quarter of 2009 was 531,500 pounds U(3)O(8), the highest quarterly production result in Akdala's history. The concentration of uranium in solution averaged approximately 68 mg per litre and the average flow rate from the well fields was approximately 1,880 cubic metres per hour during the fourth quarter, compared to 1,608 cubic metres per hour during the third quarter.
The well installation program for 2009, consisting of 164 wells, was completed by the end of December.
South Inkai Uranium Mine
South Inkai achieved record quarterly production of 547,000 pounds U(3)O(8) attributable to Uranium One during the fourth quarter. Several newly acidified well fields commenced production during the quarter and, as a result, the average concentration of uranium in solution increased to 74 mg per litre from the average of 69 mg per litre during the third quarter. Also due to the additional well fields in production, the average flow rate increased significantly during the fourth quarter to 1,800 cubic metres per hour, compared to 1,249 cubic metres per hour during the third quarter.
The well installation program for 2009, consisting of 343 wells, was completed by the end of December.
Karatau Uranium Mine
The registration of the transfer of a 50% interest in the Karatau Uranium Mine to Uranium One by the South
Uranium One will account for operational and financial results for its 50% interest in Karatau from
Kharasan Uranium Project
Attributable production during the commissioning process from Kharasan was 28,200 pounds U(3)O(8) during the fourth quarter. The concentration of uranium in solution averaged approximately 49 mg per litre during the fourth quarter, compared to an average of 57 mg per litre during the third quarter. The average flow rate from the well fields increased during the fourth quarter to 330 cubic metres per hour, compared to 284 cubic metres per hour during the third quarter.
C$270 Million Financing with Japanese Consortium
As previously announced, on
The private placement was completed, and aggregate closing proceeds of C$270 million received, on
The Company expects that the Kazakh regulatory approval required to convert the debentures into 117 million Uranium One common shares will be received during 2010.
Dividend from Betpak Dala
In
Acquisition of Christensen Ranch and Irigaray
The Company has received all regulatory approvals required in connection with the acquisition of the MALCO joint venture from wholly-owned subsidiaries of AREVA and EDF for US$35 million in cash.
The assets of MALCO include the licensed and permitted Irigaray central processing plant, the Christensen Ranch satellite in situ recovery facility and associated U(3)O(8) resources located in the Powder River Basin of Wyoming. The Nuclear Regulatory Commission license for the Irigaray central processing plant allows for a maximum of 2.5 million pounds of dried U(3)O(8) production per year.
Closing of this acquisition is expected to occur by
Closing of Sale of Texas Assets
Uranium One completed the sale of its 99% interest in the South Texas Mining Venture, LLP to Uranium Energy Corp. ("UEC") on
About Uranium One
Uranium One is one of the world's largest publicly traded uranium producers, with a globally diversified portfolio of assets located in
Cautionary Statement
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
The production and sales volumes and financial information disclosed in this press release are preliminary and may be subject to adjustment after completion of the Company's audit for the year ended
Forward-looking statements: This press release contains certain forward-looking statements. Forward-looking statements include but are not limited to those with respect to the price of uranium, the estimation of mineral resources and reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, attributable production and sales volumes for Q4 2009 and financial year 2009, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Uranium One to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, changes in market conditions, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, project cost overruns or unanticipated costs or expenses, possible variations in grade and ore densities or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes or other risks of the mining industry, exchange rate and uranium price fluctuations, delays in obtaining government approvals or financing or in completion of development or construction activities, changes in, and the effect of government policy, risks relating to the timing and completion of the transactions described in this press release, the potential benefits thereof, risks relating to the benefits derived by the Corporation from the strategic relationship described in this press release, risks relating to the integration of acquisitions, to international operations, to the price of uranium as well as those factors referred to in the section entitled "Risk Factors" in Uranium One's Annual Information Form for the year ended
For further information about Uranium One, please visit www.uranium1.com.
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For further information: Jean Nortier, Chief Executive Officer, Tel: (604) 601-5642; Chris Sattler, Executive Vice President, Corporate Development and Investor Relations, Tel: (647) 408-8274
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