Uranium Participation Corporation

TSX : U


Uranium Participation Corporation

January 13, 2014 17:30 ET

Uranium Participation Corporation Reports Financial Results for the Third Quarter Ended November 30, 2013

TORONTO, ONTARIO--(Marketwired - Jan. 13, 2014) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Uranium Participation Corporation ("UPC" or the "Corporation") (TSX:U) reports results for the third quarter ended November 30, 2013. All amounts are in Canadian currency unless otherwise noted.

Total equity ("net asset value") increased $12.6 million in the three months ended November 30, 2013 primarily due to unrealized gains on investments of $13.7 million. Net asset value declined $76.7 million for the nine months ended November 30, 2013 primarily due to unrealized losses on investments of $73.6 million. Unrealized gains and losses on investments were caused by fluctuating U3O8 and UF6 spot prices which strengthened during the third quarter but remained below spot prices at the start of the financial year.

This compares to the decline in net asset value of $75.1 million for the three months ended November 30, 2012 and $116.9 million for the nine months ended November 30, 2012 primarily due to unrealized losses on investments of $75.2 million and $117.4 million, respectively. Unrealized losses on investments in the comparative period resulted from the decline in U3O8 and UF6 spot prices.

Net asset values, uranium spot prices and foreign exchange rates as at November 30, 2013 and comparative periods are noted below:

As at
November
30, 2013
As at
August
31, 2013
Q3
Change
As at
February
28, 2013
YTD
Change
Net asset value (in thousands) $ 539,250 $ 526,659 2.4% $ 615,949 (12.5%)
Net asset value per common share - basic and diluted 5.07 4.95 2.4% 5.79 (12.4%)
U3O8 spot price(1) (US$) at period end date 36.25 35.00 3.6% 42.00 (13.7%)
UF6 spot price(1) (US$) at period end date 102.50 100.25 2.2% 120.00 (14.6%)
Noon US$"CAD$ exchange rate at period end date 1.0599 1.0553 0.4% 1.0285 3.1%
As at
November
30, 2012
As at
August
31, 2012
Q3
Change
As at
February
29, 2012
YTD
Change
Net asset value (in thousands) $ 595,146 $ 670,350 (11.2%) $ 712,160 (16.4%)
Net asset value per common share - basic and diluted 5.60 6.30 (11.1%) 6.70 (16.4%)
U3O8 spot price(1) (US$) at period end date 42.00 48.50 (13.4%) 52.00 (19.2%)
UF6 spot price(1) (US$) at period end date 119.75 133.75 (10.5%) 141.00 (15.1%)
Noon US$"CAD$ exchange rate at period end date 0.9932 0.9863 0.7% 0.9866 0.7%
(1) Reflects spot prices published by Ux Consulting Company, LLC.

The Corporation's Board of Directors approved today an amendment to the Corporation's by-laws which is subject to shareholder confirmation at the Corporation's next meeting of shareholders later in 2014. The amendment sets a deadline by which shareholders must submit a notice of director nominations to the Corporation prior to any annual or special meeting of shareholders where directors are to be elected and also sets out information which a shareholder must include in that notice. In the case of an annual meeting of shareholders, notice to the Corporation must be provided not less than 30 days prior to the date of the meeting. The amended by-laws are available on the Corporation's profile on SEDAR at www.sedar.com, and the amendment will be described in detail in the Corporation's management information circular when it is mailed to shareholders later this year.

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 through increases in the uranium price. 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