First Uranium announces financial results for the three and nine months ended
December 31, 2012
For the Management Discussion & Analysis and Financial Statements please refer
to the Corporation's website at www.firsturanium.com.
TORONTO AND JOHANNESBURG, Feb. 14, 2013 /CNW/ - First Uranium Corporation (NEX
TSX-V:FIU.H) (JSE:FUU) (ISIN:CA33744R5047) ("First Uranium" or "the
Corporation") today announced its financial results for the three and nine
months ended December 31, 2012.
Abbreviation Period Abbreviation Period
Q1 2012 April 1, 2011 - Q1 2013 April 1, 2012 -
June 30, 2011 June 30, 2012
Q2 2012 July 1, 2011 - Q2 2013 July 1, 2012 -
September 30, September 30,
Q3 2012 October 1, 2011 Q3 2013 October 1, 2012
- December 31, - December 31,
Q4 2012 January 1, 2012 Q4 2013 January 1, 2013
- March 31, 2012 - March 31, 2013
FY 2012 April 1, 2011 - FY 2013 April 1, 2012 -
March 31, 2012 March 31, 2013
2012 YTD April 1, 2011 - 2013 YTD April 1, 2012 -
December 31, December 31,
Following the disposal of First Uranium's principal assets in Q2 2013 and the
repayment of all of its debt and other obligations, other than Cdn$4.5 million
related to the 4.25% unsecured convertible debentures (the "Debentures")
during Q2 2013, 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, totaling $30.3 million, in the form of a
redemption of 12.5 Class A Special Shares at a price per share of Cdn$0.01
On January 22, 2013 and February 1, 2013, respectively, the escrow funds
related to the sale of MWS to AngloGold Ashanti Limited ("AGA") ($25 million)
and the sale of the Ezulwini Mine to Gold One International Limited ("Gold
One") ($5 million), was released to the Corporation.
On January 28, 2013, the Corporation repaid the remaining amount (Cdn$4.5
million) due under the Trust Indenture for the Debentures.
The Board of the Corporation will determine, subject to the establishment of a
reserve for any continuing and contingent obligations of the Corporation, an
additional amount to be distributed to the holders of the Units. It is the
Corporation's present intention, subject to the requirements of the stock
exchanges, to effect an additional distribution to shareholders by the end of
The Corporation will also consider the most efficient and orderly way in which
to distribute to the shareholders all remaining property of the Corporation
(after payment of the Corporation's creditors). The Corporation may then
proceed to be wound up and dissolved. However, the Board has not made any
decisions with respect to the windup and dissolution at this time.
Results for Q3 2013
The Corporation reported losses from its continuing operations of $0.6 million
and $20.7 million in Q3 2013 (Q3 2012: $14.3 million) and 2013 YTD (2012 YTD:
$42.4 million), respectively.
Prior to the disposal of its discontinued operations in Q2 2013, the
Corporation reported a profit from its discontinued operations of $108.6
million in 2013 YTD, compared to losses of $98.1 million in Q3 2012 and $131.4
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 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 Q3 2012
and 2013 YTD of $83.7 million and $19.0 million, respectively.
The Corporation (including discontinued operations) utilized $0.9 million and
$11.0 million cash from its operations in Q3 2013 (Q3 2012: $4.0 million) and
2013 YTD (2012 YTD: $5.9 million). Prior to the disposal of its discontinued
operations in Q2 2013, the Corporation utilized $6.9 million during 2013 YTD
(2012 YTD: $30.1 million) on capital projects at its discontinued operations.
For Q3 2012, $7.7 million was utilized on capital projects at its discontinued
operations. During Q2 2013, the Corporation raised $388.4 million 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. During Q3 2013 the Corporation utilized $30.3 million of the
remaining proceeds to pay the Distribution as discussed under the Summary
section of this news release to the Corporation's shareholders.
As at December 31, 2012, current assets were $34.6 million (March 31, 2012:
$4.2 million), of which $30.0 million was restricted cash. The restricted cash
related to the deferred payments pursuant to the sales transactions.
The Corporation's current liabilities amounted to $6.2 million at the end of
Q3 2013 (March 31, 2012: $268.8 million) and consisted of $4.5 million related
to the maximum principal amount remaining outstanding of the Debentures, $1.5
million tax payable provision and $0.3 million trade and other payables. The
$4.5 million liability related to the Debentures was settled in full on
January 28, 2013.
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 is 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
Mary Batoff, +1 416 306 3072 email@example.com
SOURCE: First Uranium Corporation
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