Uranium Participation Reports Financial Results

- January 15th, 2018

Late last week, Uranium Participation Corp. (TSX:U) filed its financial results for the period ended November 30, 2017.

Late last week, Uranium Participation Corp. (TSX:U) filed its financial results for the period ended November 30, 2017.
As quoted in the press release:

Overall Performance
Total equity, or the value of the Corporation’s assets minus its liabilities (“Net Asset Value” or “NAV”), increased by $90.8 million during the three months ended November 30, 2017, due to the net gain recognized in the period and the $38.2 million net proceeds of the October 2017 equity financing (“October 2017 Financing”). This equates to an increase in the NAV per common share of $0.40 during the quarter.
The net gain for three months ended November 30, 2017, of $52.6 million, was primarily due to unrealized net gains on investments in uranium of $52.7 million and foreign exchange income of $1.1 million, offset by other operating expenses of $1.2 million.
Unrealized net gains on investments in uranium, during the three months ended November 30, 2017, 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 $1.2 million (excluding foreign exchange gains of $1.1 million) for the three months ended November 30, 2017, represents approximately 0.3% of the Corporation’s NAV at November 30, 2017 and 0.3% of the NAV at February 28, 2017.
Subsequent Events
On December 29, 2017, the Corporation entered into an agreement with a primary UF6 conversion supplier to sell the conversion components contained in 786,241 KgU as UF6. The sale is expected to be completed in January 2018 and result in the exchange of 786,241 KgU as UF6 for 2,054,330 pounds U3O8 plus cash consideration of US$3,538,000. In connection with this transaction, the Corporation also amended its storage arrangements with the primary supplier to provide for beneficial storage terms that are fixed for the period through December 31, 2028. This transaction will simplify UPC’s uranium holdings and, most significantly, will provide storage price certainty on a significant portion of the Corporation’s uranium holdings for a period of 11 years.
During the month of December 2017, the Corporation completed the purchase of an additional 630,000 pounds U3O8 at an average cost of US$20.53 (CAD$26.32) per pound U3O8. In total, the Corporation has purchased 1,350,000 pounds U3O8 at an average cost of US$20.40 (CAD$25.90) per pound U3O8 with the proceeds of the October 2017 Financing.
Outstanding Share Data
At January 11, 2018, there were 132,448,713 common shares issued and outstanding. There are no stock options or other equity instruments issued and outstanding.

Click here to read the full Uranium Participation Corporation (TSX:U) press release.

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