Uranium Participation Corporation
TSX : U

Uranium Participation Corporation

October 02, 2014 16:37 ET

Uranium Participation Corporation Reports Financial Results for the Second Quarter Ended August 31, 2014

TORONTO, ONTARIO--(Marketwired - Oct. 2, 2014) -

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Uranium Participation Corporation ("UPC" or the "Corporation") (TSX:U) reports results for the second quarter ended August 31, 2014. All amounts are in Canadian dollars unless otherwise noted.

Total equity ("Net Asset Value") increased $38.5 million in the three months ended August 31, 2014 and declined $83.6 million for the six months ended August 31, 2014, mainly as a result of the change in net gain and loss as discussed below. Net Asset Value at August 31, 2014 and for comparative periods were:

August 31, May 31, February 28,
2014 2014 2014
Net Asset Value (in thousands) $ 518,856 $ 480,390 $ 602,460
Net Asset Value per common share - basic and diluted $ 4.44 $ 4.11 $ 5.15
U3O8 spot price(1) (US$) $ 31.00 $ 28.25 $ 35.50
UF6 spot price(1) (US$) $ 87.00 $ 81.00 $ 99.00
Foreign exchange noon-rate (US$ to CAD$) 1.0858 1.0867 1.1075
  1. Spot prices published by Ux Consulting Company, LLC. Translation to Canadian dollars calculated at the period-end foreign exchange noon-rate.

Net gain of $38.5 million for the three months ended August 31, 2014 (August 31, 2013: net loss of $69.3 million) was primarily due to unrealized gain on investments of $39.6 million (August 31, 2013: unrealized losses on investments of $68.1 million), mainly as a result of the rise in U3O8 and UF6 spot prices (decline in U3O8 and UF6 spot prices in the prior year comparable period).

Net loss of $83.5 million for the six months ended August 31, 2014 (August 31, 2013: net loss of $89.3 million) was primarily due to unrealized net losses on investments of $80.8 million (August 31, 2013: unrealized losses of $87.2 million), mainly as a result of the overall decline in U3O8 and UF6 spot prices.

During the three months ended August 31, 2014, significant expenses included management fees of $0.4 million (August 31, 2013: $0.4 million) and storage fees of $0.7 million (August 31, 2013: $0.6 million). During the six months ended August 31, 2014, significant expenses included management fees of $0.8 million (August 31, 2013: $0.9 million), storage fees of $1.2 million (August 31, 2013: $1.1 million) and uranium purchase commissions of $0.5 million (August 31, 2013: $nil).

Cash and cash equivalents amounted to $29.6 million as at August 31, 2014 (February 28, 2014: $64.6 million).

About Uranium Participation Corporation

Uranium Participation Corporation is a company that invests substantially all of its assets in uranium oxide in concentrates ("U3O8") and uranium hexafluoride ("UF6") (collectively "uranium"), with the primary investment objective of achieving appreciation in the value of its uranium holdings. Additional information about Uranium Participation Corporation is available on SEDAR at www.sedar.com and on Uranium Participation Corporation's website at www.uraniumparticipation.com.

Contact Information

  • Uranium Participation Corporation
    Ron Hochstein
    President and Chief Executive Officer
    (416) 979-1991 Ext. 232

    Uranium Participation Corporation
    James Anderson
    Chief Financial Officer
    (416) 979-1991 Ext. 372
    www.uraniumparticipation.com