Uranium One Announces Q1 2014 Production of 3.1 Million Pounds; Average Total Cash Cost of $13 per Pound Sold and Attributable

Uranium One Announces Q1 2014 Production of 3.1 Million Pounds; Average Total 
Cash Cost of $13 per Pound Sold and Attributable Sales of 3.3 Million Pounds 
TORONTO, May 13, 2014 /CNW/ - Uranium One Inc. ("Uranium One" or the 
"Corporation") today reported revenues of $69.5 million in Q1 2014 at an 
average total cash cost per pound sold of produced material((2) )of $13 based 
on attributable sales of 3.3 million pounds at an average realized sales 
price((2)) of $36 per pound.  Attributable production for Q1 2014 was 3.1 
million pounds. 
Q1 2014 Highlights 
Operational 


    --  Total attributable production during Q1 2014 was 3.1 million
        pounds, compared to the total attributable production of 3.1
        million pounds during Q1 2013.
    --  The average total cash cost per pound sold of produced material
        ((2)) was $13 per pound during Q1 2014 compared to $17 per
        pound for Q1 2013.

Financial
    --  Attributable sales volumes of produced material for Q1 2014
        were 3.3 million pounds sold from the Corporation's operations
        and joint ventures compared to 1.4 million pounds sold during
        Q1 2013.
    --  Headline revenue was $69.5 million in Q1 2014, compared to
        $22.8 million in Q1 2013.
    --  Attributable revenues((2)) (which includes revenues from its
        interests in joint ventures and the Corporation's headline
        revenues), amounted to $118.0 million in Q1 2014, compared to
        $62.6 million in Q1 2013.
    --  The average realized sales price of produced material((2))
        during Q1 2014 was $36 per pound, compared to $45 per pound in
        Q1 2013. The average spot price in Q1 2014 was $35 per pound
        compared to $43 per pound in Q1 2013.
    --  Gross profit was $4.9 million during Q1 2014, compared to gross
        profit of $1.9 million in Q1 2013.
    --  Attributable gross profit((2) )(which includes the
        Corporation's share of gross profit from joint ventures),
        totaled $40.2 million in Q1 2014, a 105.1% increase compared to
        $19.6 million in Q1 2013, primarily due to an increase of
        135.7% in the sales volume and a decrease of 24% in the average
        total cash cost per pound sold((2)).
    --  The net loss for Q1 2014 was $34.2 million or $0.04 per share,
        compared to net losses of $9.5 million or $0.01 per share for
        Q1 2013.
    --  The adjusted net loss((2)) for Q1 2014 was $22.9 million or
        $0.02 per share((2)), compared to adjusted net loss((2)) of
        $11.2 million or $0.01 per share((2)) for Q1 2013.

Corporate
    --  As previously announced, on January 2, 2014, the Corporation
        completed the repurchase of C$227.5 million aggregate principal
        amount of its outstanding 5.0% convertible unsecured
        subordinated debentures due March 13, 2015 ("2010 Debentures"),
        representing 87.49% of the outstanding aggregate principal
        amount of the 2010 Debentures. The repurchase was completed
        pursuant to an offer to repurchase the 2010 Debentures which
        commenced on November 15, 2013, as required by the indenture
        governing the 2010 Debentures as a result of the completion of
        the previously disclosed acquisition of all of the publicly
        held common shares of the Corporation not already owned by a
        subsidiary of JSC Atomredmetzoloto ("ARMZ") on October 18, 2013
        (the "Going Private Transaction"). The repurchased 2010
        Debentures have been cancelled.
    --  On February 11, 2014, the Kazakhstan Tenge was devalued to US$
        1.00 = KZT 185.00, a devaluation of 19% from the previous
        target rate of US$1.00 = KZT 150.00. The Tenge devaluation
        resulted in a foreign exchange translation loss of $249.9
        million recorded in the Corporation's foreign currency
        translation reserve and investments in joint ventures.
    --  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 under
        the foregoing orders and regulations designated a number of
        Russian and Ukrainian nationals, and the US and Canada have
        designated a number of corporate entities. The Corporation's
        operations have not been impacted by the foregoing orders or
        regulations or any designations made thereunder and the
        Corporation continues to carry on business as usual.
    --  On March 26, 2014, 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 from Kazatomprom to the Corporation's Betpak Dala
        and Kyzylkum joint ventures of the subsoil use contracts for
        the Akdala, South Inkai and Kharasan fields. The order has been
        appealed by the joint ventures and is subject to a stay while
        the appeal is being heard. The Corporation and its shareholders
        are currently in discussions with Kazatomprom with a view to
        obtaining new subsoil use rights 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 Corporation from existing operations is unaffected during
        this period. The Corporation's principal 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.
    --  Subsequent to March 31, 2014, the Corporation elected to cancel
        its existing undrawn revolving credit facility. The facility
        will terminate effective May 14, 2014.

Outlook
    --  Total attributable production for 2014 is expected to be 12.4
        million pounds.
    --  During 2014, the average total cash cost per pound sold of
        produced material((2)) 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.
    --  Expected total attributable production, average total cash cost
        per pound sold of produced material((2)), attributable sales of
        produced material and attributable capital expenditures for
        2014 are subject to adjustment in the event the appeal of
        Betpak Dala and Kyzylkum from the March 26, 2014 court order is
        dismissed and the Ministry of Industry and New Technologies
        re-registers the Akdala, South Inkai and Kharasan subsoil use
        contracts in the name of Kazatomprom. Depending on the timing
        of the issuance of new subsoil use rights, such adjustments may
        be material.
    --  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.

Q1 2014 Operations and Projects

During the first quarter of 2014, Uranium One achieved attributable production 
of 3.1 million pounds, compared to total attributable production of 3.1 
million pounds in Q1 2013.

Operational results for Uranium One's assets during the first quarter of 2014 
were:
             Asset Q1 2014 Attributable           Q1 2014 Total Cash Costs
                        Production                   (per lb sold U3O8)
                        (lbs U3O8)
    ---                 ---------
    Akdala                                474,000                          $12
    ------                                -------                          ---
    South Inkai                           886,300                          $16
    -----------                           -------                          ---
    Karatau                               646,900                           $9
    -------                               -------                          ---
    Akbastau                              450,200                          $11
    --------                              -------                          ---
    Zarechnoye                            287,700                          $20
    ----------                            -------                          ---
    Kharasan                              166,800                          N/A
    --------                              -------                          ---
    Willow Creek                          174,000                          N/A
    ------------                          -------                          ---
    Total                               3,085,900                          $13
    -----                               ---------                          ---

Q1 2014 Financial Review

Headline revenue was $69.5 million in Q1 2014, compared to $22.8 million in Q1 
2013. Attributable revenues((2)) (which includes revenues from its interests 
in joint ventures and the Corporation's headline revenues), amounted to $118.0 
million in Q1 2014, compared to $62.6 million in Q1 2013. The average realized 
sales price of produced material((2)) during Q1 2014 was $36 per pound, 
compared to $45 per pound in Q1 2013. The average spot price in Q1 2014 was 
$35 per pound compared to $43 per pound in Q1 2013.

The average total cash cost per pound sold of produced material((2)) was $13 
per pound during Q1 2014 compared to $17 per pound for Q1 2013.

Gross profit was $4.9 million during Q1 2014, compared to gross profit of $1.9 
million in Q1 2013. Attributable gross profit((2)) (which includes the 
Corporation's share of gross profit from joint ventures), totaled $40.2 
million in Q1 2014, a 105.1% increase compared to $19.6 million in Q1 2013, 
primarily due to an increase of 135.7% in the sales volume and a decrease of 
24% in the average total cash cost per pound sold.

The net loss for Q1 2014 was $34.2 million or $0.04 per share, compared to net 
losses of $9.5 million or $0.01 per share for Q1 2013.

The adjusted net loss((2)) for Q1 2014 was $22.9 million or $0.02 per 
share((2)), compared to an adjusted net loss((2)) of $11.2 million or $0.01 
per share((2)) for Q1 2013.

On March 31, 2014, the Corporation had cash and cash equivalents, including 
restricted cash, of $201.9 million, compared to $440.6 million at December 31, 
2013.

The following table provides a summary of key financial results:
    FINANCIAL                                                                Q1 2014        Q1 2013
    ---------                                                                -------        -------
    Attributable production (lbs) (1)                                            3,085,900      3,018,000
    Attributable sales (lbs) (1) - Produced material                             3,265,700      1,381,300
    Average realized sales price ($ per lb) (2) - Produced material                     36             45
    Average total cash cost per pound sold ($ per lb)(2) - Produced material            13             17
    Revenues ($ millions) - as reported on consolidated income statement              69.5           22.8
    Attributable revenues ($ millions)(2)                                            118.0           62.6
    Gross profit ($ millions) - as reported on consolidated income statement           4.9            1.9
    Attributable gross profit ($ millions)(2)                                         40.2           19.6
    Net loss  ($ millions)                                                           (34.2)          (9.5)
    Net loss per share - basic and diluted ($ per share)                             (0.04)         (0.01)
    Adjusted net loss ($ millions)(2)                                                (22.9)         (11.2)
    Adjusted net loss per share - basic ($ per share)(2)                             (0.02)         (0.01)
    ---------------------------------------------------                              -----          -----
    (1)      Attributable production
             and attributable sales
             are from assets owned and
             joint ventures in
             commercial
             production during the
             period.
    (2)      The Corporation has
             included the following
             non-GAAP performance
             measures: average
             realized sales
             price per pound of
             produced material,
             average total cash cost
             per pound sold of
             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

The Corporation has included the following non-GAAP performance measures 
throughout this news release: 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.

I) Adjusted net loss

Adjusted net loss and adjusted net loss per share do not have any standardized 
meaning prescribed by IFRS and are therefore unlikely to be comparable to 
similar measures reported by other companies. The Corporation believes that, 
in addition to conventional measures prepared in accordance with IFRS, 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.

Adjusted net loss is calculated by adding back restructuring costs, 
impairments, cost of suspension of operations, gains/losses from the sale of 
assets, foreign exchange gains/losses, non-hedge derivative gains and losses 
and the effect of the tax rate adjustment on deferred tax liabilities to net 
earnings. Corporate development expenditure relates to one-off project costs. 
These items are added back due to their inherent volatility and/or infrequent 
occurrence.

The following table provides a reconciliation of adjusted net loss to net loss 
reported for the periods presented:
    (US DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)                                3 MONTHS ENDED
    ------------------------------------------------                                 --------------
         MAR
         31,
         2014                                                                   MAR 31, 2013
                                                                     $ MILLIONS   $ MILLIONS
                                                                     ----------   ----------
    Net loss - as reported                                                             (34.2)        (9.5)
    Corporate development expenditure                                                    0.6          5.1
    Restructuring costs                                                                    -          2.1
    Foreign exchange (gains)                                                           (31.7)        (8.9)
    Non-hedge derivative losses, net of tax                                             42.4            -
    Adjusted net loss                                                                  (22.9)       (11.2)
    -----------------                                                                  -----        -----
    Adjusted net loss per share - basic ($) and diluted                                (0.02)       (0.01)
    Weighted average number of shares (millions) - basic and diluted                   957.2        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 13 of the condensed 
consolidated interim financial statements for the period ended March 31, 2014. 
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 revenues reported 
for the periods presented:
    (US DOLLARS IN MILLIONS)                                   3 MONTHS ENDED
    -----------------------                                    --------------
        MAR 31, 2014                                      MAR 31, 2013
                                               $ MILLIONS   $ MILLIONS
                                               ----------   ----------
    Revenues - as reported                                        69.5         22.8
    Attributable revenues from joint ventures                    108.8         57.4
    Intercompany purchases from joint ventures                   (60.3)       (17.6)
    ------------------------------------------                   -----        -----
    Attributable revenues                                        118.0         62.6
    ---------------------                                        -----         ----

Attributable Gross Profit:

Attributable gross profit is disclosed in the table of uranium sales, 
inventory and operating costs on pages 22 and 23 of the Management's 
Discussion and Analysis. The following table provides a reconciliation of 
attributable gross profit to the gross profit reported for the periods 
presented:
    (US DOLLARS IN MILLIONS)                                            3 MONTHS ENDED
    -----------------------                                             --------------
        MAR 31,
         2014                                                      MAR 31, 2013
                                                        $ MILLIONS   $ MILLIONS
                                                        ----------   ----------
    Gross profit - as reported                                              4.9          1.9
    Attributable revenues from joint ventures                             108.8         57.4
    Attributable operating expenses from joint ventures                   (42.0)       (21.5)
    Attributable depreciation from joint ventures                         (31.5)       (18.2)
    ---------------------------------------------                         -----        -----
    Attributable gross profit                                              40.2         19.6
    -------------------------                                              ----         ----

III) Average realized sales price per pound of produced material and average 
total cash cost per pound sold of produced material

The Corporation has included the following non-GAAP performance measures 
throughout this news release: average realized sales price per pound of 
produced material and average total cash cost per pound sold of produced 
material. The Corporation reports total cash costs on a sales basis. 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. 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.

As in previous periods, average realized sales price per pound of produced 
material and average total cash cost per pound sold of produced material are 
calculated as follows:
    a)             Average realized sales price
                   per pound of produced
                   material: Attributable
                   revenues minus revenues in
                   the "Corporate and other"
                   segment(3) divided by
                   attributable sales pounds of
                   produced material.
    b)             Average total cash cost per
                   pound sold of produced
                   material: Operating expenses
                   of produced material(3)
                   divided by attributable
                   sales pounds of produced
                   material(3).
    (3)            See tables on pages 22 and 23
                   of the Management's
                   Discussion and Analysis.

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, the timing of uranium processing facilities being fully 
operational,  costs of production, capital expenditures, market conditions, 
corporate plans, objectives and goals,  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, availability 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 completion of transactions, 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, 2013, 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/May2014/13/c2219.html 
CO: Uranium One Inc.
ST: Ontario
NI: MNG ERN  
-0- May/13/2014 22:46 GMT
 
 
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