Uranium One Announces 23% Increase in Q3 2012 Production to 3.1 Million Pounds; Average Total Cash Costs of $16 per Pound Sold

Uranium One Announces 23% Increase in Q3 2012 Production to 3.1 Million 
Pounds; Average Total Cash Costs of $16 per Pound Sold and Attributable Sales 
of 2.9 Million Pounds 
TORONTO, Nov. 5, 2012 /CNW/ - Uranium One Inc. ("Uranium One") today reported 
quarterly revenue of $142.6 million for Q3 2012 at an average total cash cost 
per pound sold of $16 based on sales of 2.9 million pounds at an average 
realized sales price of $49 per pound. Attributable production for the quarter 
was 3.1 million pounds. 
Q3 2012 Highlights 
Operational 


    --  Total attributable production during Q3 2012 was 3.1 million
        pounds, 23% higher than total attributable production of
        2.5 million pounds during Q3 2011.
    --  The average total cash cost per pound sold was $16 per pound
        during Q3 2012 compared to $14 per pound during Q3 2011.
    --  The Kharasan Mine was successfully commissioned and reached
        commercial production during Q3 2012.
    --  Production of sulphuric acid commenced in July 2012 at the
        Corporation's SKZ-U joint venture.

Financial
    --  Attributable sales volumes for Q3 2012 were 2.9 million pounds,
        compared to 3.1 million pounds sold during Q3 2011.
    --  Revenue was $142.6 million in Q3 2012, compared to $157.7
        million in Q3 2011. The average realized sales price during
        Q3 2012 was $49 per pound compared to $51 per pound in Q3 2011.
        The average spot price in Q3 2012 was $49 per pound.
    --  Earnings from mine operations were $58.8 million during Q3
        2012, compared to earnings from mine operations of
        $73.7 million in Q3 2011.
    --  The net loss for Q3 2012 was $61.6 million or $0.06 per share,
        compared to net earnings of $45.8 million or $0.05 per share
        for Q3 2011.
    --  The adjusted net earnings for Q3 2012 were $7.6 million or
        $0.01 per share, compared to adjusted net earnings of
        $46.4 million or $0.05 per share for Q3 2011.
    --  The Company determined that it would not be economical to mine
        the South Zarechnoye deposit due to the decrease in uranium
        prices since the Fukushima incident, together with a decrease
        in the South Zarechnoye resource base resulting from recent
        exploration results and the completion of an economic
        assessment. The carrying value of the Zarechnoye Mine was
        therefore written down by $79.1 million, net of deferred taxes
        of $11.1 million.

Corporate
    --  The Corporation now owns 100% of the Honeymoon project after
        receiving all regulatory approvals for the withdrawal of Mitsui
        from the joint venture. The Corporation recognized a gain of
        $17.2 million as a result of the transaction.
    --  The United Arab Emirates announced the award of $3 billion
        worth of fuel supply contracts to six global suppliers,
        including Uranium One. This long term contract will meet a
        portion of the uranium requirements of the Barakah Nuclear
        Power Station scheduled to start up by 2017.
    --  Uranium One also concluded its first Chinese contract during Q3
        2012, which calls for the supply of uranium to China Guangdong
        Nuclear Power Corporation in 2012 and 2013. 
    --  On October 15, 2012, the Tanzanian government issued an
        environmental impact assessment certificate to Mantra Tanzania
        in respect of the Mkuju River Project.  Issuance of the
        certificate completes Mantra's application for a Special Mining
        License for the Project and represents a significant permitting
        milestone.

Chris Sattler, Chief Executive Officer of Uranium One, commented:

"Despite volatility in the uranium price over the last several weeks, our view 
of the positive long-term fundamentals for our industry has not changed. We 
remain focused on achieving our production, cost and sales targets for our 
operations. We are well-positioned to take advantage of projected higher 
uranium prices with our diversified and low cost production portfolio and our 
strategy of remaining an unhedged producer."

Outlook

Market prices for Q3 2012 ranged between $46.50 and $49.50 per pound U(3)O(8) 
(month-end UxC spot). After trading at or above $50 per pound for the better 
part of one year, the uranium market broke through that level as a result of 
ample spot supplies meeting demand of a more discretionary nature. This became 
even more pronounced in the early part of Q4 2012 with the price currently 
residing at around $41. Selling activity has been dominated by producers 
closing sales for year-end cash flow, and by traders unwinding long positions 
or engaged in short-selling. Fundamentals for the medium and long term, 
however, remain positive, especially following the announced deferrals of a 
number of large, high profile uranium mining projects.

The Corporation's total attributable production guidance for 2012 remains at 
11.6million pounds. Total attributable production for 2013 is estimated to 
be 12.5 million pounds as shown below.

 ________________________________________
|  Operation |     2013 Attributable     |
|            |Production Estimate (M lbs)|
|____________|___________________________|
|Akdala      |                  1.8      |
|____________|___________________________|
|South Inkai |                  3.3      |
|____________|___________________________|
|Karatau     |                  2.6      |
|____________|___________________________|
|Akbastau    |                  1.9      |
|____________|___________________________|
|Zarechnoye  |                  1.1      |
|____________|___________________________|
|Kharasan    |                  0.5      |
|____________|___________________________|
|Willow Creek|                  0.8      |
|____________|___________________________|
|Honeymoon   |                  0.5      |
|____________|___________________________|
|Total       |                 12.5      |
|____________|___________________________|

Attributable production for 2014 is estimated to be 13.0 million pounds.

During 2013, the average cash cost per pound sold is expected to be 
approximately $19 per pound, in line with our guidance of $19 per pound for 
2012.

 ______________________________________
|     Operation  |2013 Total Cash Cost |
|                |per Pound Sold ($/lb)|
|________________|_____________________|
|Akdala          |             $15     |
|________________|_____________________|
|South Inkai     |             $19     |
|________________|_____________________|
|Karatau         |             $13     |
|________________|_____________________|
|Akbastau        |             $13     |
|________________|_____________________|
|Zarechnoye      |             $26     |
|________________|_____________________|
|Kharasan        |             $30     |
|________________|_____________________|
|Willow Creek    |             $27     |
|________________|_____________________|
|Honeymoon       |             $37     |
|________________|_____________________|
|Weighted Average|             $19     |
|________________|_____________________|

Sales volumes for 2012 are heavily weighted towards the last quarter of the 
year, and the Corporation expects to achieve guidance for sales of 11 million 
pounds in 2012. The Corporation expects attributable sales to be approximately 
12.5 million and 13.0 million pounds in 2013 and 2014, respectively.

The Corporation expects to incur attributable capital expenditures in 2013 of 
$107million for wellfield development and $66million for plant and 
equipment, totalling $173 million for its assets in Kazakhstan, the United 
States and Australia.
                          2013 - ESTIMATED CAPITAL EXPENDITURE IN $
                                          MILLIONS

MINE / PROJECT                    PLANT AND         
                       WELLFIELD  EQUIPMENT  TOTAL   OWNERSHIP  TOTAL
                      DEVELOPMENT  AND OTHER                  %
                                              100%       ATTRIBUTABLE

Kazakhstan                                                           

Akdala                         11         21    32          70%    22

South Inkai                    31         25    56          70%    39

Karatau                        30         22    52          50%    26

Akbastau                       25         16    41          50%    21

Zarechnoye                     32          4    36       49.67%    18

Kharasan                       30          4    34          30%    10

SKZ-U                           -          4     4          19%     1

Subtotal - Kazakhstan         159         96   255                137

Australia and United                                                 
States

Honeymoon                       5          3     8         100%     8

Willow Creek and the           20          6    26         100%    26
Powder River Basin

Other                           -          2     2                  2

Subtotal - Australia           25         11    36                 36
and United States

Total                         184        107   291                173

In 2013, general and administrative expenses, excluding non-cash items, are 
expected to be approximately $40 million and exploration expenses are expected 
to be $8 million.

Q3 2012 Operations and Projects

During Q3 2012, Uranium One achieved attributable production of 3.1 million 
pounds, an increase of 23% over attributable production of 2.5 million pounds 
for the comparable period in 2011.

Operational results for Uranium One's assets during Q3 2012 were:

 ___________________________________________________________________
|Asset            |Q3 Attributable Production| Q3 Total Cash Costs  |
|                 |      (lbs U(3)O(8))      |(per lb sold U(3)O(8))|
|_________________|__________________________|______________________|
|Akdala           |              494,400     |              $13     |
|_________________|__________________________|______________________|
|South Inkai      |              903,400     |              $18     |
|_________________|__________________________|______________________|
|Karatau          |              722,300     |              $11     |
|_________________|__________________________|______________________|
|Akbastau         |              345,400     |              $11     |
|_________________|__________________________|______________________|
|Zarechnoye       |              312,300     |              $24     |
|_________________|__________________________|______________________|
|Kharasan ((1))   |              117,100     |              $28     |
|_________________|__________________________|______________________|
|Willow Creek((1))|              186,400     |               -      |
|_________________|__________________________|______________________|
|Honeymoon        |               11,200     |              N/A     |
|_________________|__________________________|______________________|

(1) Attributable production and sales are from assets owned and in
    commercial production during the period. Willow Creek and Kharasan
    reached commercial production levels effective from May 1, 2012 and
    July 1, 2012, respectively and sales and production results for
    these
    mines are included in the operating results for the periods after
    these
    dates.

Q3 2012 Financial Review

Revenue was $142.6 million in Q3 2012, compared to $157.7 million in Q3 2011. 
The average realized sales price during Q32012 was $49per pound compared 
to $51 per pound in Q3 2011. The average spot price in Q3 2012 was $49 per 
pound.

Operating expenses per pound sold were $16 for Q3 2012 compared to $14 in Q3 
2011.

Earnings from mine operations were $58.8 million during Q3 2012, compared to 
earnings from mine operations of $73.7million in Q3 2011.

Attributable inventory as at September 30, 2012 was 5.6 million pounds, which 
includes work in progress as well as finished product. Finished product at 
conversion facilities awaiting pre-scheduled deliveries into sales contracts 
was 0.9 million pounds at September 30, 2012.

The net loss for Q3 2012 was $61.6 million or $0.06 per share, compared to net 
earnings of $45.8 million or $0.05 per share for Q32011.

The adjusted net earnings for Q3 2012 were $7.6 million or $0.01 per share, 
compared to adjusted net earnings of $46.4million or $0.05per share for Q3 
2011.

Consolidated cash and cash equivalents were $442.3 million as at September 30, 
2012 compared to $619.0 million at December 31, 2011. Working capital was 
$628.7 million at September 30, 2012.

The following table provides a summary of key financial results:
                                                               

FINANCIAL                        Q3 2012   Q3 2011   YTD 2012 YTD 2011

Attributable production (lbs) (
(1))                            3,081,300 2,351,900 8,452,600 6,901,000

Attributable sales (lbs)( (1))  2,865,800 3,086,500 6,558,800 6,720,200
                                                                       

Average realized sales price ($
per lb)( (2))                          49        51        51        56

Average total cash cost per
pound sold( )($ per lb)((2))           16        14        15        14

Revenues ($'millions)               142.6     157.7     335.3     372.5

Earnings from mine operations
($'millions)                         58.8      73.7     148.2     186.6

Net (loss) /earnings
($'millions)                       (61.6)      45.8    (27.9)      89.5

Net (loss) / earnings per share
- basic and diluted ($ per
share)                             (0.06)      0.05    (0.03)      0.09
                                                                       

Adjusted net earnings
($'millions)((2))                     7.6      46.4      33.3      86.8

Adjusted net earnings per share
- basic ($ per share)((2))           0.01      0.05      0.03      0.09

(1) Attributable production and sales are from assets owned and in
    commercial production during the period.
    Willow Creek and Kharasan reached commercial production levels
    effective from May 1, 2012 and July 1,
    2012, respectively and sales and production results for these mines
    are included in the operating results
    for the periods after these dates.

(2) The Corporation has included non-GAAP performance measures: average
    realized sales price per pound,
    cash cost per pound sold, adjusted net earnings and adjusted net
    earnings per share. In the uranium mining
    industry, these are common performance measures but do not have any
    standardized meaning, and are
    non-GAAP measures. The Corporation believes that, in addition to
    conventional measures prepared in
    accordance with GAAP, the Corporation and certain investors use
    this information to evaluate the
    Corporation's performance and ability to generate cash flow. The
    additional information provided herein should
    not be considered in isolation or as a substitute for measures of
    performance prepared in accordance with GAAP.
    See "Non-GAAP Measures".



The following table provides a reconciliation of adjusted net earnings / 
(loss) to the consolidated financial statements:


(US DOLLARS IN      3 MONTHS ENDED            9 MONTHS ENDED
MILLIONS EXCEPT
PER SHARE           SEP 30, 2012 SEP 30, 2011 SEP 30, 2012 SEP 30, 2011
AMOUNTS)            $'MILLIONS   $'MILLIONS   $'MILLIONS   $'MILLIONS 
Net (loss) /              (61.6)         45.8       (27.9)         89.5
earnings 
Fair value                     -        (1.3)          0.3        (6.8)
adjustments 
Impairment                  79.1            -         79.1            -
charges (net of
deferred taxes of
$11.1 million) 
Gain on business          (17.2)            -       (17.2)            -
combination 
Care and                     0.3          0.2          1.2          0.9
maintenance costs 
Corporate                    0.2          0.1          2.6          1.0
development
expenditure 
Restructuring                1.5          1.6          1.5          2.2
costs 
Ruble bond hedge             5.3            -          4.1            -
accounting
adjustments 
Non-recurring                  -            -       (10.4)            -
income tax
adjustment 
Adjusted net                 7.6         46.4         33.3         86.8
earnings 
                                                                    
Adjusted net                0.01         0.05         0.03         0.09
earnings per
share - basic ($) 
Adjusted net                0.01         0.05         0.03         0.09
earnings per
share - diluted
($) 
                                                                    
Weighted average           957.2        957.2        957.2        957.2
number of shares
(millions) -
basic 
Weighted average           957.2        957.2        957.2        957.2
number of shares
(millions) -
diluted 
                                                                    
The financial statements, as well as the accompanying management's discussion 
and analysis, are available for review at www.uranium1.com and should be read 
in conjunction with this news release. All figures are in U.S. dollars 
unless otherwise indicated. All references to pounds sold or pounds produced 
are to pounds of U(3)O(8). 
Conference Call Details 
Uranium One will be hosting a conference call and webcast to discuss the third 
quarter 2012 results on Tuesday, November 6, 2012 starting at 10:00 a.m. 
(Eastern Time). Participants may join the call by dialing toll free 
1-888-231-8191 or 1-647-427-7450 for local calls or calls from outside Canada 
and the United States. A live webcast of the call will be available through 
CNW Group's website at www.newswire.ca or at Uranium One's website at 
www.uranium1.com. 
A recording of the conference call will be available for replay for a two week 
period beginning at approximately 11:30 p.m. (Eastern Time) on November 6, 
2012 by dialing toll free 1-855-859-2056 or 1-416-849-0833 for local calls or 
calls from outside Canada and the United States. The pass code for the 
replay is 55321879. A replay of the webcast will be available through a link 
on our website at www.uranium1.com 
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 Kazakhstan, the 
United States, Australia and Tanzania. 
Cautionary Statement 
No stock exchange, securities commission or other regulatory authority has 
approved or disapproved the information contained herein. 
Investors are advised to refer to independent technical reports containing 
detailed information with respect to the material properties of Uranium One. 
These technical reports are available under the profile of Uranium One Inc. at 
www.sedar.com. Those technical reports provide the date of each resource or 
reserve estimate, details of the key assumptions, methods and parameters used 
in the estimates, details of quantity and grade or quality of each resource or 
reserve and a general discussion of the extent to which the estimate may be 
materially affected by any known environmental, permitting, legal, taxation, 
socio-political, marketing, or other relevant issues. The technical reports 
also provide information with respect to data verification in the estimation. 
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, the timing of uranium 
processing facilities being fully operational, costs of production, capital 
expenditures, costs and timing of the development of new deposits, success of 
exploration activities, permitting time lines, currency fluctuations, market 
conditions, corporate plans, objectives and goals, requirements for additional 
capital, government regulation of mining operations, the estimation of mineral 
resources and reserves, the realization of resource and reserve estimates, 
environmental risks, unanticipated reclamation expenses, the timing and 
potential effects of proposed acquisitions, 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, the completion of the projects 
described in this press release, the future steady state production and cash 
costs of Uranium One, the actual results of current exploration activities, 
conclusions of economic evaluations, changes in project parameters as plans 
continue to be refined, possible variations in grade and ore densities or 
recovery rates, failure of plant, equipment or processes to operate as 
anticipated, possible shortages of sulphuric acid in Kazakhstan, possible 
changes to the tax code in Kazakhstan, accidents, labour disputes or other 
risks of the mining industry, delays in obtaining government approvals or 
financing or in completion of development or construction activities, risks 
relating to the integration of acquisitions and the realization of synergies 
relating thereto, to international operations, to prices 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 December 31, 2011, which is 
available on SEDAR at www.sedar.com, and which should be reviewed in 
conjunction with this document. Although Uranium One has attempted to identify 
important factors that could cause actual actions, events or results to differ 
materially from those described in forward-looking statements, there may be 
other factors that cause actions, events or results not to be as anticipated, 
estimated or intended. There can be no assurance that forward-looking 
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 expressly disclaims any intention or obligation to 
update or revise any forward-looking statements, whether as a result of new 
information, future events or otherwise, except in accordance with applicable 
securities laws. 
For further information about Uranium One, please visit www.uranium1.com. 
Chris Sattler Chief Executive Officer Tel: +1 647 788 8500 
Anton Jivov Vice President, Corporate Affairs Tel: +1 647 788 8461 
SOURCE: Uranium One Inc. 
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CO: Uranium One Inc.
ST: Ontario
NI: MNG ERN CONF  
-0- Nov/06/2012 00:02 GMT
 
 
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