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  
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