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Based in Toronto, Uranium Participation Corporation is a company that invests its assets in uranium oxide in concentrates and uranium hexafluoride.
Uranium Participation Corporation (TSX:U) has released its third quarter results, during the three month period the company reported a net gain of C$86.8 million.
Based in Toronto, Uranium Participation Corporation is a company that invests its assets in uranium oxide in concentrates and uranium hexafluoride.
As quoted from the press release:
Overall Performance
Total equity, or the value of the Corporation’s assets minus its liabilities, increased by C$86.6 million during the three months ended August 31, 2018, due to the net gain recognized in the period. This equates to an increase in the NAV per common share of C$0.62 during the quarter.
The net gain for three months ended August 31, 2018, of C$86.6 million, was primarily due to uranium related gains of C$86.6 million, other income of C$1.2 million, and foreign exchange income of C$0.3 million, offset by other operating expenses of C$1.5 million.
Unrealized net gains on investments in uranium, during the three months ended August 31, 2018, were caused by the increase in the spot price for uranium and the increase in the U.S. dollar to Canadian dollar exchange rates.
Operating expenses of C$1.5 million (excluding foreign exchange gains of C$0.3 million and other income of C$1.2 million) for the three months ended August 31, 2018, partially offset by income from lending and/or relocation of uranium of C$0.1 million, represents approximately 0.2 percent of the Corporation’s NAV at August 31, 2018 and 0.3 percent of the NAV at February 28, 2018.
Current Market Conditions
The global nuclear power industry recently met at the World Nuclear Association’s (‘WNA’) annual symposium in London, UK, where the atmosphere reflected a more positive mood towards the uranium market in general – supported in large part by continued production curtailments. Significantly, the announcement that Cameco Corporation’s McArthur River mine will be shut down indefinitely, removing up to 18 million pounds of U3O8 production from the market annually, has reaffirmed that primary uranium production will remain in a deficit to annual demand for the foreseeable future.
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