Uranium One Announces 8% Increase in 2013 Production to 13.2 Million Pounds; Average Total Cash Cost of $16 per Pound Sold(2),(4

Uranium One Announces 8% Increase in 2013 Production to 13.2 Million Pounds; 
Average Total Cash Cost of $16 per Pound Sold(2),(4) and Attributable Sales of 
13.6 Million Pounds 
TORONTO, March 31, 2014 /CNW/ - Uranium One Inc. ("Uranium One") today 
reported revenues of $386.4 million for full year 2013 at an average total 
cash cost per pound sold of produced material((4)) of $16 based on 
attributable sales of 13.6 million pounds at an average realized sales price 
of $40 per pound.  Attributable production for full year 2013 was 13.2 million 
pounds. 
2013 Highlights 
Operational 


    --  Total attributable production during 2013 was a record 13.2
        million pounds, 8% higher than total attributable production of
        12.2 million pounds during 2012.
    --  The average total cash cost per pound sold of produced material
        ((4)) was $16 per pound during 2013 compared to $16 per pound
        during 2012.

Financial
    --  Attributable sales volumes of produced material for 2013 were
        13.6 million pounds sold from the Corporation's operations and
        joint ventures compared to 11.7 million pounds sold during
        2012.
    --  Headline revenues were $386.4 million in 2013, compared to
        $353.4 million in 2012.
    --  Attributable revenues((4) )(which includes revenues from
        interests in joint ventures and the Corporation's headline
        revenues), amounted to $659.2 million in 2013, compared to
        $623.7 million in 2012.
    --  The average realized sales price of produced material((4))
        during 2013 was $40 per pound, compared to $48 per pound in
        2012. The average spot price in 2013 was $38 per pound compared
        to $49 per pound in 2012.
    --  Gross profit was $63.1 million during 2013, compared to gross
        profit of $30.8 million in 2012.
    --  Attributable gross profit((4)) (which includes the
        Corporation's share of gross profit from joint ventures),
        totaled $159.1 million in 2013, a 30.1% decrease compared to
        $227.6 million in 2012, primarily due to a decrease of 20% in
        the price of U(3)O(8).
    --  The net loss for 2013 was $41.3 million or $0.04 per share,
        compared to net losses of $96.7 million or $0.10 per share for
        2012.
    --  The adjusted net earnings((4)) for 2013 were $16.3 million or
        $0.02 per share, compared to adjusted net earnings((4)) of
        $65.1 million or $0.07 per share for 2012.
    --  The Corporation announced the suspension of production at its
        Honeymoon Project during the fourth quarter following the
        impairment charge of $67.8 million previously announced in the
        third quarter of 2013, and the Honeymoon operation was placed
        on a care and maintenance (C&M) program.
    --  During the fourth quarter of 2013 the Corporation distributed
        $381.3 million to its shareholders and did a share buy-back of
        $16.8 million for a total distribution of $398.1 million.

Corporate
    --  The previously announced "Going Private Transaction", whereby
        the Corporation would be taken private pursuant to a Plan of
        Arrangement with JSC Atomredmetzoloto ("ARMZ") was completed on
        October 18, 2013. All of the publicly held common shares of the
        Corporation not already owned by subsidiaries of ARMZ (which
        indirectly owned 51.4% of the Corporation's outstanding common
        shares) were acquired by a subsidiary of ARMZ for a cash
        consideration of C$2.86 per share. Following the completion of
        the Going Private Transaction, and an internal reorganization
        by ARMZ's parent corporation, Russia's State Atomic Energy
        Company "Rosatom" ("Rosatom") in December 2013, Uranium One is
        now a wholly-owned indirect subsidiary of Rosatom and is no
        longer controlled by ARMZ.
    --  On December 9, 2013, Uranium One gave notice to ARMZ of the
        termination of the Mantra Resources option agreement in respect
        of the Mkuju River Project, which termination will be effective
        as of June 10, 2014.
    --  As previously announced, during the fourth quarter of 2013, the
        Corporation's wholly-owned subsidiary Uranium One Investments
        Inc. ("U1 Investments") completed an offering, on a private
        placement basis to qualified institutional buyers in the U.S.
        and Europe, of $300.0 million aggregate principal amount of
        non-convertible 6.25% Senior Secured Notes due December 13,
        2018 ("Senior Secured Notes"). Net proceeds from this offering
        were made available to the Corporation for the repurchase of
        its 2010 Debentures, as discussed below, and for general
        corporate purposes. In addition, U1 Investments entered into a
        three year $120 million revolving credit facility agreement
        (the "Revolving Credit Facility") with a syndicate of lenders.
    --  On January 2, 2014, the Corporation completed the repurchase of
        C$227,461,000 aggregate principal amount of its outstanding
        5.0% convertible unsecured subordinated debentures due March
        13, 2015 ("2010 Debentures"), representing 87.49% of the
        outstanding aggregate principal amount of the 2010 Debentures,
        pursuant to an offer to repurchase the 2010 Debentures
        commenced on November 15, 2013, as required by the indenture
        governing the 2010 Debentures as a result of the completion of
        the Going Private Transaction. The repurchased 2010 Debentures
        have been cancelled.
    --  On January 6, 2014, the Corporation appointed Juliana L. Lam as
        Executive Vice President and Chief Financial Officer. Julie
        brings with her extensive senior-level international financial
        management experience in diverse industries such as mining,
        manufacturing, services and distribution.
    --  On March 16, 2014, the Corporation appointed Feroz Ashraf as
        Executive Vice President and Chief Operating Officer. Feroz
        brings over 34 years of experience in the resource sector,
        including mining and metallurgy, oil and gas, and related
        downstream industries.
    --  The United States, European Union and Canada have recently
        issued orders or adopted regulations imposing sanctions in the
        form of visa restrictions and asset freezes on the property of
        certain designated persons considered to be responsible for the
        events in Ukraine. To date, the US, EU and Canada have
        designated a number of Russian and Ukrainian nationals, and the
        US and Canada have designated one Russian financial
        institution. The Corporation's operations have not been
        impacted by the foregoing orders or regulations or any
        designations or determinations made thereunder and the
        Corporation continues to carry on business as usual.
    --  On March 26, the Special Inter-District Economic Court for the
        City of Astana (Republic of Kazakhstan) issued an order having
        the effect of invalidating the original transfers in 2004 and
        2005 to the Betpak Dala and Kyzylkum joint ventures of the
        subsoil use contracts for the Akdala, South Inkai and Kharasan
        fields. The order is being appealed by the joint ventures and
        is subject to a stay while the appeal is being heard. The
        Company and its shareholders are currently in discussions with
        Kazatomprom with a view to obtaining new subsoil use rights to
        the Akdala, South Inkai and Kharasan fields in the event that
        the order becomes effective. Kazatomprom, Betpak Dala and
        Kyzylkum are putting in place temporary arrangements designed
        to ensure that, notwithstanding the court order, Betpak Dala
        and Kyzylkum carry on normal business operations and the rate
        of return to the Company from existing operations is unaffected
        during this period. The Company's shareholder, Uranium One
        Holding N.V., and Kazatomprom have signed protocols to this
        effect and are taking the steps necessary to ensure that
        scheduled production and deliveries to customers are not
        affected.

Outlook
    --  Total attributable production for 2014 is expected to be 12.4
        million pounds.
    --  During 2014, the average cash cost per pound sold of produced
        material((3)) is expected to be approximately $18 per pound.
    --  The Corporation expects attributable sales of produced material
        to be approximately 12.4 million pounds in 2014.
    --  The Corporation expects to incur attributable capital
        expenditures in 2014 of $65 million for wellfield development
        and $8 million for plant and equipment, totalling $73 million
        for its assets in Kazakhstan and the United States.
    --  In 2014, general and administrative expenses, excluding
        non-cash items, are expected to be approximately $32 million
        and exploration expenses are expected to be $1 million.

2013 Operations and Projects

During 2013, Uranium One achieved attributable production of 13.2 million 
pounds, an increase of 8% over attributable production of 12.2 million pounds 
in 2012.

Operational results for Uranium One's assets during 2013 were:
                               2013 Attributable Production    2013 Total
                                                               Cash Costs
              Asset
                                        (lbs U3O8)            (per lb sold
                                                                  U3O8)
    ---                                           ---------   ------------
    Akdala                                        1,856,500            $14
    ------                                        ---------            ---
    South Inkai                                   3,694,300            $18
    -----------                                   ---------            ---
    Karatau                                       2,749,200            $11
    -------                                       ---------            ---
    Akbastau                                      1,948,500            $13
    --------                                      ---------            ---
    Zarechnoye                                    1,201,800            $25
    ----------                                    ---------            ---
    Kharasan                                        586,700            $21
    --------                                        -------            ---
    Willow Creek                                    940,000            $25
    ------------                                    -------            ---
    Honeymoon(1)                                    246,400            N/A
    -----------                                     -------            ---
    Total                                        13,223,400            $16
    -----                                        ----------            ---

(1)       Honeymoon production represents concentrates in process that require 
further processing in order to become uranium concentrates that can be 
converted into a saleable product.

2013 Financial Review

Headline revenues were $386.4 million in 2013, compared to $353.4 million in 
2012. Attributable revenues((4)) (which includes revenues from its interests 
in joint ventures and the Corporation's headline revenues), amounted to $659.2 
million in 2013, compared to $623.7 million in 2012. The average realized 
sales price of produced material((4)) during 2013 was $40 per pound, compared 
to $48 per pound in 2012. The average spot price in 2013 was $38 per pound 
compared to $49 per pound in 2012.

Cash cost per pound sold of produced material((4)) was $16 for 2013 compared 
to $16 in 2012.

Gross profit was $63.1 million during 2013, compared to gross profit of $30.8 
million in 2012. Attributable gross profit((4)) (which includes the 
Corporation's share of gross profit from joint ventures), totaled $159.1 
million in 2013, a 30.1% decrease compared to $227.6 million in 2012.

The net loss for 2013 was $41.3 million or $0.04 per share, compared to a net 
loss of $96.7 million or $0.10 per share for 2012.

The adjusted net earnings((4)) for 2013 were $16.3 million or $0.02 per share, 
compared to adjusted net earnings((4)) of $65.1 million or $0.07 per share for 
2012.

On December 31, 2013, the Corporation had cash and cash equivalents, including 
restricted cash, of $440.6 million, compared to $442.0 million at December 31, 
2012.

The following table provides a summary of key financial results:


FINANCIAL                                                                    Q4 2013            Q4 2012            
FY 2013             FY 2012 
---------                                                                    -------            -------            -
------             ------- 


    Attributable production (lbs) (2)                                                    3,244,000          3,223,500   
       12,997,000          11,676,100
    Attributable sales (lbs) (2) - Produced material                                     3,347,900          5,136,000   
       13,565,200          11,694,800
    Average realized sales price ($ per lb) (4) - Produced material                             40                 44   
               40                  48
    Average total cash cost per pound sold ($ per lb) (4) - Produced material                   16                 17   
               16                  16
    Revenues  ($ millions) - as reported on consolidated income statement (3)                106.2              100.9   
            386.4               353.4
    Attributable revenues ($ millions) (4)                                                   190.7              227.6   
            659.2               623.7
    Gross profit ($ millions) - as reported on consolidated income statement (3)              40.4               14.2   
             63.1                30.8
    Attributable gross profit ($ millions) (3), (4)                                           53.4               76.6   
            159.1               227.6
    Net earnings (loss)  ($ millions)                                                         21.2              (68.8)  
            (41.3)              (96.7)
    Net earnings (loss) per share - basic and diluted ($ per share)                           0.02              (0.07)  
            (0.04)              (0.10)
    Adjusted net (loss) earnings ($ millions) (4)                                            (27.2)              33.3   
             16.3                65.1
    Adjusted net (loss) earnings per share - basic ($ per share) (4)                         (0.03)              0.03   
             0.02                0.07
    ---------------------------------------------------------------                          -----               ----   
             ----                ----

(1)  Honeymoon production represents concentrates in process that require 
further processing in order to become uranium concentrates that can be 
converted into a saleable product. (2)  Attributable production and 
attributable sales are from assets owned and joint ventures in commercial 
production during the period.  (3)  Comparative information has been restated 
with the   adoption of IFRS 11 - Joint arrangements on January 1, 2013. (4)  
The Corporation has included the following non-GAAP performance measures: 
average realized sales price per pound - produced material, average total cash 
cost per pound sold - produced material, attributable revenues, attributable 
gross profit, adjusted net earnings (loss) and adjusted net earnings (loss) 
per share. See the section on "Non-GAAP Measures".

Non-GAAP Measures

I) Adjusted net earnings

The Corporation has included the following non-GAAP performance measures: 
attributable revenues, attributable gross profit, average realized sales price 
per pound - produced material, average total cash cost per pound sold - 
produced material, adjusted net earnings (loss) and adjusted net earnings 
(loss) 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 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.

The following table provides a reconciliation of adjusted net earnings (loss) 
to the consolidated financial statements:
                                                                                                                        
                                                                           
    (US DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)                                                                   
                      3 MONTHS ENDED                  YEAR ENDED
    ------------------------------------------------                                                                    
                      --------------                  ----------
                                                                                                                        
                                                           
    DEC 31, 2013                                                                                                        
               DEC 31, 2012                  DEC 31, 2013  DEC 31, 2012
                                                                                                                        
                                                           


                                                                                                                     
$ MILLIONS                    $ MILLIONS    $ MILLIONS    $ MILLIONS 
                                                                                                                     
----------                    ----------    ----------    ---------- 


                                                                                                                        
                                                                       
    Net earnings (loss)                                                                                                 
                       21.2         (68.8)        (41.3)        (96.7)
                                                                                                                        
                                                                       
    Reversal of provision for contingent payments                                                                       
                      (44.8)         (1.6)        (44.8)         (1.6)
                                                                                                                        
                                                                       
    Impairment charges (net of deferred taxes)                                                                          
                          -         102.3          67.8         181.4
                                                                                                                        
                                                                       
    Gain on business combination                                                                                        
                          -             -             -         (17.2)
                                                                                                                        
                                                                       
    2010 Debentures accelerated interest                                                                                
                          -             -          15.6             -
                                                                                                                        
                                                                       
    Corporate development expenditure                                                                                   
                        4.9           0.1          17.5           2.7
                                                                                                                        
                                                                       
    Restructuring costs                                                                                                 
                        1.8           0.7           3.9           2.2
                                                                                                                        
                                                                       
    Non-hedge derivative (gains) losses, net of tax                                                                     
                      (10.3)          0.6          (2.4)          4.7
                                                                                                                        
                                                                       
    Non-recurring income tax adjustment                                                                                 
                          -             -             -         (10.4)
    -----------------------------------                                                                                 
                        ---           ---           ---         -----
                                                                                                                        
                                                                       
    Adjusted net (loss) earnings                                                                                        
                      (27.2)         33.3          16.3          65.1
    ----------------------------                                                                                        
                      -----          ----          ----          ----
                                                                                                                        
                                                                       
                                                                                                                        
                                                                       
    Adjusted net (loss) earnings per share - basic ($) and diluted                                                      
                      (0.03)         0.03          0.02          0.07
                                                                                                                        
                                                                       
    Weighted average number of shares (millions) - basic and diluted                                                    
                      958.4         957.2         958.4         957.2
                                                                                                                        
                                                                       

II) Attributable Revenues and Attributable Gross Profit

The Corporation monitors and evaluates performance of its business by using 
these additional non-GAAP measures, which are consistent with the results that 
would be reported under proportionate consolidation accounting.

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. This is provided as additional information and should not be 
considered in isolation, or as a substitute for measures of performance 
prepared in accordance with IFRS.

Attributable Revenues:

Attributable revenues are determined as shown in note 28(a) of the audited 
annual consolidated financial statements. This note discloses segmented 
information which incorporates the revenues of the Corporation under 
proportionate consolidation. The following table provides a reconciliation of 
attributable revenues to the financial statements:
                                                                                  
    (US DOLLARS IN MILLIONS)        3 MONTHS ENDED             YEAR ENDED
    -----------------------         --------------             ----------
                                                                                   
    DEC 31, 2013                 DEC 31, 2012          DEC 31, 2013  DEC 31, 2012
                                                                                   
                     $ MILLIONS            $ MILLIONS    $ MILLIONS    $ MILLIONS
                     ----------            ----------    ----------    ----------
                                                                                 
    Revenues                        106.2     100.9         386.4         353.4
                                                                                 
    Attributable revenues from
     joint ventures                  91.7     205.0         440.0         513.4
                                                                                 
    Intercompany purchases from
     joint ventures                  (7.2)    (78.3)       (167.2)       (243.1)
    ---------------------------      ----     -----        ------        ------
                                                                                 
    Attributable revenues           190.7     227.6         659.2         623.7
    ---------------------           -----     -----         -----         -----

Attributable Gross Profit:

Attributable gross profit is disclosed in the table of uranium sales, 
inventory and operating costs on page 23 of the Management's Discussion and 
Analysis. The following table provides a reconciliation of attributable gross 
profit to the financial statements:
                                                                                                                        
                                                 


(US DOLLARS IN MILLIONS)                                                                                        3 
MONTHS ENDED                  YEAR ENDED 
-----------------------                                                                                         ----
----------                  ---------- 


                                                                                                                        
                                 


DEC 31, 2013                                                                                             DEC 31, 
2012                  DEC 31, 2013  DEC 31, 2012 


                                                                                                                        
                                 
                                                                                                 $ MILLIONS             
       $ MILLIONS    $ MILLIONS    $ MILLIONS
                                                                                                 ----------             
       ----------    ----------    ----------
                                                                                                                        
                                             


Gross profit                                                                                                     
40.4          14.2          63.1          30.8 


                                                                                                                        
                                             


Attributable revenues from joint ventures                                                                        
91.7         205.0         440.0         513.4 


                                                                                                                        
                                             


Attributable operating expenses from joint ventures                                                             
(40.9)        (79.8)       (190.5)       (173.8) 


                                                                                                                        
                                             


Attributable depreciation from joint ventures                                                                   
(37.8)        (62.8)       (153.5)       (142.8) 
---------------------------------------------                                                                   ----
-         -----        ------        ------ 


                                                                                                                        
                                             


Attributable gross profit                                                                                        
53.4          76.6         159.1         277.6 
-------------------------                                                                                        ---
-          ----         -----         ----- 
III) Average realized sales price per pound and cash cost per pound sold 
As in previous periods, average realized sales price per pound of produced 
material and cash cost per pound sold of produced material are calculated as 
follows: 
a)  Average realized sales price per pound of produced material: Revenues - 
produced materials divided by attributable sales pounds sold - produced 
material.  b)  Cash cost per pound sold of produced material: Operating 
expenses - produced material divided by attributable sales pounds sold - 
produced material. 
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). 
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. ROSATOM State Atomic Energy Corporation, through its 
affiliates, owns 100% of the outstanding common shares of Uranium One. 
Cautionary Statements 
No stock exchange, securities commission or other regulatory authority has 
approved or disapproved the information contained herein. 
Scientific and technical information contained herein has been reviewed on 
behalf of the Corporation by Mr. M.H.G. Heyns, Pr.Sci.Nat. (SACNASP), MSAIMM, 
MGSSA, Senior Vice President New Business and Technical Services of the 
Corporation, a qualified person for the purposes of NI 43-101. 
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 and risk factors: This news release contains 
certain forward-looking statements. Forward-looking statements include but are 
not limited to those with respect to the outcome of the appeals of the court 
order, the probability of a successful appeal of that order, the possibility 
of concluding and the terms of any new subsoil use contracts which may be 
entered into with Kazatomprom if the order is not reversed,  the price of 
uranium, the estimation of mineral resources and mineral reserves, the 
realization of mineral reserve estimates, the timing and amount of estimated 
future production, 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, the timing and potential effects of 
proposed transactions, title disputes or claims, 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 reversal of the court order on 
appeal, the obtaining of new subsoil use rights if the order is not reversed, 
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, 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 under Uranium One's profile on SEDAR at 
www.sedar.com, and which should be reviewed in conjunction with this document. 
There can be no assurance as to whether or on what terms new subsoil use 
rights might be obtained, and, given the nature of the proceedings, Uranium 
One cannot assess the probability of a reversal of the order on appeal.  If 
the order is not reversed in full or new subsoil use rights are not granted or 
alternative arrangements implemented (or are granted or implemented on less 
favourable terms), or binding agreements with Kazatomprom are not concluded, 
the effect on Uranium One may be material.  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
 

SOURCE  Uranium One Inc. 
Chris Sattler, Chief Executive Officer, Tel: +1 647 788 8500; Anton Jivov, 
Vice President, Corporate Affairs, Tel: +1 647 788 8461 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/March2014/31/c1948.html 
CO: Uranium One Inc.
ST: Ontario
NI: MNG ERN  
-0- Apr/01/2014 02:34 GMT
 
 
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