Uranium One Announces 18% Increase in Q2 2013 Production to 3.6 Million Pounds; Average Total Cash Cost of $19 per Pound

Uranium One Announces 18% Increase in Q2 2013 Production to 3.6 Million 
Pounds; Average Total Cash Cost of $19 per Pound 
TORONTO, Aug. 6, 2013 /CNW/ - Uranium One Inc. ("Uranium One") today reported 
quarterly revenue of $123.0 million for Q2 2013, including joint venture 
revenue, based on sales of 2.9 million pounds at an average realized sales 
price of $43 per pound at an average total cash cost per pound sold of $19. 
Q2 2013 Highlights 
Operational 


    --  Total attributable production during Q2 2013 was 3.6 million
        pounds, 18% higher than total attributable production of 3.0
        million pounds during Q2 2012.
    --  The average total cash cost per pound sold was $19 per pound
        for Q2 2013, compared to $16 per pound for Q2 2012.

Financial
    --  Attributable sales volumes for Q2 2013 were 2.9 million pounds
        sold from the Corporation's operations and joint ventures
        compared to 1.9 million pounds sold during Q2 2012.
    --  Revenue was $11.9 million in Q2 2013, compared to $13.0 million
        in Q2 2012.
    --  Joint venture revenue in Q2 2013 was $111.1 million, compared
        to $83.8 million in Q2 2012.
    --  The average realized sales price during Q2 2013 was $43 per
        pound, compared to $51 per pound in Q2 2012. The average spot
        price in Q2 2013 was $40 per pound compared to $51 per pound in
        Q2 2012.
    --  Earnings from mine operations were $5.1 million in Q2 2013,
        compared to $3.1 million in Q2 2012.
    --  Earnings from mine operations, including earnings from joint
        ventures, were $31.1 million in Q2 2013, a 22% decrease
        compared to earnings from mine operations, including joint
        ventures, of $40.1 million in Q2 2012.
    --  The net earnings for Q2 2013 were $10.6 million or $0.01 per
        share, compared to net earnings of $29.2 million or $0.03 per
        share for Q2 2012.
    --  The adjusted net earnings for Q2 2013 were $7.0 million or
        $0.01 per share, compared to adjusted net earnings of $8.4
        million or $0.01 per share for Q2 2012.

Corporate
    --  On January 13, 2013, the Corporation entered into a definitive
        agreement with ARMZ under which the Corporation would be taken
        private pursuant to a Plan of Arrangement. ARMZ and its
        affiliates currently own 51.4% of the Corporation's outstanding
        common shares. Under the agreement, ARMZ will acquire all of
        the remaining publicly held Common Shares for a cash
        consideration of CDN$2.86 per share. On March 7, 2013, the
        Corporation received securityholder approval for the proposed
        Plan of Arrangement. Closing is expected to take place by the
        end of Q3 2013 following receipt of all required regulatory
        approvals.
    --  On March 25, 2013, the Corporation arranged a three year, $1.45
        billion unsecured revolving credit facility with an ARMZ
        affiliate. The drawings under the facility bear interest at the
        rate of 3.3% per annum. On March 26, 2013, the Corporation drew
        down the facility as it evaluates initiatives to expand its
        business.
    --  On April 5 2013, the Tanzanian Government issued a Special
        Mining License for the Company's Mkuju River Project.
        Negotiations with the Tanzanian Government on the terms of a
        mine development agreement and other required Tanzanian
        approvals are continuing.

Outlook
    --  Total attributable production for 2013 and 2014 is expected to
        be 12.5 million and 13.0 million pounds, respectively.
    --  During 2013, the average cash cost per pound sold is expected
        to be approximately $19 per pound.
    --  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 $92 million for wellfield development
        and $62 million for plant and equipment, totalling $154 million
        for its assets in Kazakhstan, the United States and Australia.
    --  In 2013, general and administrative expenses, excluding
        non-cash items, are expected to be approximately $40 million
        and exploration expenses are expected to be $5 million.

Q2 2013 Operations and Projects

During Q2 2013, Uranium One achieved attributable production of 3.6 million 
pounds, an increase of 18% over attributable production of 3.0 million pounds 
for the comparable period in 2012.

Operational results for Uranium One's assets during Q2 2013 were:

 ____________________________________________________________________
|         Asset    |Q2 Attributable Production| Q2 Total Cash Costs  |
|                  |      (lbs U(3)O(8))      |(per lb sold U(3)O(8))|
|__________________|__________________________|______________________|
|Akdala            |              508,600     |              $14     |
|__________________|__________________________|______________________|
|South Inkai       |            1,051,500     |              $19     |
|__________________|__________________________|______________________|
|Karatau           |              664,100     |              $11     |
|__________________|__________________________|______________________|
|Akbastau          |              514,100     |              $13     |
|__________________|__________________________|______________________|
|Zarechnoye        |              311,500     |              $25     |
|__________________|__________________________|______________________|
|Kharasan ((1))    |              135,400     |              $30     |
|__________________|__________________________|______________________|
|Willow Creek( (1))|              283,400     |               -      |
|__________________|__________________________|______________________|
|Honeymoon( (2))   |               84,700     |               -      |
|__________________|__________________________|______________________|
|Total             |            3,553,300     |              $19     |
|__________________|__________________________|______________________|

Q2 2013 Financial Review

Revenue was $11.9 million in Q2 2013, compared to $13.0 million in Q2 2012.

Joint venture revenue in Q2 2013 was $111.1 million, compared to $83.8 million 
in Q2 2012.

The average realized sales price during Q22013 was $43per pound, compared 
to $51 per pound in Q2 2012. The average spot price in Q2 2013 was $40 per 
pound compared to $51 per pound in Q2 2012.

Earnings from mine operations were $5.1 million in Q2 2013, compared to 
$3.1million in Q2 2012.

Earnings from mine operations, including earnings from joint ventures, were 
$31.1 million in Q2 2013, a 22% decrease compared to earnings from mine 
operations, including joint ventures, of $40.1million in Q2 2012.

Inventory as at June 30, 2013 was 1.0 million pounds for the Corporation and 
its subsidiaries, which includes work in progress as well as finished product 
ready to be shipped or in transit. Inventory held by the joint ventures was 
4.9 million pounds as at June 30, 2013.

The net earnings for Q2 2013 were $10.6 million or $0.01 per share, compared 
to net earnings of $29.2 million or $0.03 per share for Q2 2012.

The adjusted net earnings for Q2 2013 were $7.0 million or $0.01 per share, 
compared to adjusted net earnings of $8.4 million or $0.01 per share for Q2 
2012.

Consolidated cash and cash equivalents including restricted cash were $1,824.0 
million as at June 30, 2013 compared to $442.0 million at December 31, 2012. 
Working capital was $550.4 million at June 30, 2013.

The following table provides a summary of key financial results:
                                                             

FINANCIAL                   Q2 2013     Q2 2012       YTD        YTD
                                                    Q2 2013    Q2 2012

Attributable production                                      
(lbs)((1))                3,468,600   2,798,800   6,486,600   5,371,300

Attributable sales (lbs)(                                    
(1))                      2,865,100   1,883,600   4,246,400   3,693,000
                                                                       

Average realized sales                                       
price ($ per lb)((3))            43          51          44          52

Average total cash cost                                      
per pound sold ($ per lb)
((3))                            19          16          18          15

Revenues ($millions)((4)                                     
(6))                           11.9        13.0        17.1        18.3

Revenues from joint                                          
ventures ($millions)          111.1        83.8       168.5       174.4

Earnings from mine                                           
operations ($millions)(
(4)(5))                         5.1         3.1         7.0         8.4

Earnings from mine                                           
operations, including
earnings from joint            31.1        40.1        50.7        89.4
ventures
($millions)

Net earnings ($millions)       10.6        29.2         1.1        33.7

Net earnings per share -                                     
basic and diluted ($ per
share)                         0.01        0.03        0.00        0.04

Adjusted net earnings                                        
($millions)((3))                7.0         8.4         2.2        23.0

Adjusted net earnings per                                    
share - basic ($ per
share)((3))                    0.01        0.01        0.00        0.02

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

US DOLLARS IN               3 MONTHS ENDED            6 MONTHS ENDED
MILLIONS EXCEPT
PER SHARE           JUN 30, 2013 JUN 30, 2012 JUN 30, 2013 JUN 30, 2012
AMOUNTS             $'MILLIONS     $'MILLIONS   $'MILLIONS   $'MILLIONS

Net earnings                10.6         29.2          1.1         33.7

Fair value                 (0.7)          0.3        (0.9)          0.3
adjustments

Corporate                    0.9          0.5          6.0          2.4
development
expenditure

Restructuring                  -            -          2.1            -
costs

Ruble bond hedge           (3.8)       (11.2)        (6.1)        (3.0)
accounting
adjustments

Non-recurring                  -       (10.4)            -       (10.4)
income tax
adjustment

Adjusted net                 7.0          8.4          2.2         23.0
earnings
                                                                       

Adjusted net                0.01         0.01         0.00         0.02
earnings per
share - basic and
diluted ($)

Weighted average   
number of shares
(millions) -               957.2        957.2        957.2        957.2
basic and
diluted
                                                                       

The financial statements, as well as the accompanying management's discussion 
and analysis were prepared in accordance with International Financial 
Reporting (IFRS) and are available for review at www.uranium1.com and should 
be read in conjunction with this news release. Any reference to information 
including joint venture balances should be read as a non-IFRS measure used to 
compare our financial performance to prior periods. 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).

About Uranium One

Uranium One is one of the world's largest uranium producers with a globally 
diversified portfolio of assets located in Kazakhstan, the United States, 
Australia and Tanzania.  

Notes to the financial results:

(1)Attributable production and sales are from assets owned and joint 
ventures in commercial production during the period.
(2)Honeymoon production represents concentrates in process that 
require further processing in order to become uranium concentrates that can be 
converted into a saleable product.
(3)The Corporation has included the following non-IFRS 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-IFRS measures. The Corporation believes 
that, in addition to conventional measures prepared in accordance with IFRS, 
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 IFRS. See 
"Non-IFRS Measures".
(4)Comparative information has been restated with the adoption of 
IFRS 11 - Joint arrangements on January 1, 2013.
(5)Includes profits / losses for joint venture production delivered 
into contracts held by the Corporation, and excludes revenues from joint 
ventures.

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 quality 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, 2012, 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 

-0- Aug/06/2013 22:15 GMT