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Financial results
First Uranium Corporation
(Continued under the laws of Ontario, Canada)
(Registration number 2082276)
(South African registration number 2007/009016/10)
Share code: FUU ISIN: CA33744R5087
12 November 2012
First Uranium announces financial results for the three and six months ended
September 30, 2012.
For the Management Discussion & Analysis and Financial Statements please refer to
the Corporation’s website at www.firsturanium.com.
Toronto and Johannesburg – First Uranium Corporation (NEX:FIU.H) (JSE:FUU)
(ISIN:CA33744R5047) (“First Uranium” or “the Corporation”) today announced its
financial results for the three and six months ended September 30, 2012.
Abbreviation Period Abbreviation Period
Q1 2012 April 1, 2011 - June 30, 2011 Q1 2013 April 1, 2012 - June 30, 2012
Q2 2012 July 1, 2011 - September 30, 2011 Q2 2013 July 1, 2012 - September 30, 2012
FY 2012 April 1, 2011 - March 31, 2012 FY 2013 April 1, 2012 - March 31, 2013
2012 YTD April 1, 2011 - September 30, 2011 2013 YTD April 1, 2012 - September 30, 2012
Summary
During the second quarter of FY 2013, the Corporation disposed of its two principal
assets and utilized a substantial portion of the proceeds raised to redeem in full the
7% secured convertible notes (the “Canadian Notes”) and the 11% secured
convertible notes (the “Rand Notes”), repay the loan from Gold One International
(“Gold One”) and repay 95% of principal amount of the 4.25% unsecured convertible
debentures (the “Debentures”). Subsequently, the Debentures were delisted from
the TSX.
Upon the disposal of First Uranium’s principal assets, the Corporation effected a
change of business according to the rules of the Toronto Stock Exchange (“TSX”). As a
result of such change in business, the Corporation no longer met the original listing
requirements, and decided to voluntarily delist from the TSX; however, to maintain
liquidity in the Units and to remain a “public corporation”, it applied for listing on the
NEX Exchange, a separate board of the TSX Venture Exchange that provides a trading
forum for listed companies that have low levels of business activity or have ceased to
carry on an active business. The Units were delisted from the TSX at the close of the
market on August 31, 2012 and the Units commenced trading on the NEX (FIU.H) on
September 4, 2012.
After the Corporation’s Units were listed on the NEX and upon meeting the
requirements for notice of record dates and payment dates of the NEX and the JSE
Limited, the Corporation made an initial distribution (the “Distribution”) on October
1, 2012 of Cdn$0.125 (ZAR1.05) per unit to shareholders of the Corporation in the
form of a redemption of 12.5 Class A Special Shares at a price per share of Cdn$0.01
(ZAR0.08402). Each Unit is currently comprised of 87.5 Class A Special Shares and 1
Class B Common Shares. The number of Units outstanding was unchanged following
the initial distribution.
Once the escrow funds are released in accordance with the respective sale
agreements with AngloGold Ashanti Limited and Gold One, the settlement of all
remaining obligations to the Debenture holders and the establishment of a reserve
for any continuing and contingent obligations, the Board will determine an additional
amount to be distributed to the holders of the Units.
Results for Q2 2013 and 2013 YTD
The Corporation reported losses from its continuing operations of $5.6 million and
$16.0 million in Q2 2013 (Q2 2012: $15.9 million) and 2013 YTD (2012 YTD: $28.2
million), respectively.
The Corporation also reported profits from its discontinued operations of $74.3
million and $108.6 million in Q2 2013 and 2013 YTD, respectively, compared to losses
of $13.4 million in Q2 2012 and $33.2 million in 2012 YTD. The primary drivers for the
improvements over comparative periods were the $78.9 million profit on disposal of
the Corporation’s principal assets during Q2 2013 and 2013 YTD along with the
derivative income related to the discontinued operations’ Gold Stream Transactions of
$35.0 million recognized in Q1 2013 compared to a derivative expense recognized in
Q2 2012 and 2013 YTD of $42.4 million and $64.7 million, respectively.
The Corporation (including discontinued operations) utilized $14.1 million and $10.1
million cash from its operations in Q2 2013 (Q2 2012: $4.4 million) and 2013 YTD
(2012 YTD: 9.9 million). The Corporation utilized $4.3 million and $6.9 million during
Q2 2013 (Q2 2012: $6.6 million) and 2013 YTD (2012 YTD: $22.4 million) on capital
projects at its discontinued operations. During Q2 2013, the Corporation raised $388.4
million net cash proceeds from the disposal of its principal assets and used a
substantial portion of the cash proceeds raised ($317.3 million) to settle the Cdn$110
million Canadian Notes ($109.0 million), the ZAR418.6 million Rand Notes ($51.5
million), the $10 million Gold One loan facility and Cdn$145.5 million ($146.8 million)
of the Cdn$150 million principal amount of Debentures outstanding.
As at September 30, 2012, current assets were $65.2 million (March 31, 2012: $4.2
million), of which $60.3 million were restricted cash. The restricted cash comprised of
$30.0 million related to the deferred payments pursuant to the Transactions and
$30.3 million related to the initial distribution to shareholders on October 1, 2012.
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The Corporation’s current liabilities amounted to $5.8 million at the end of Q2 2013
(March 31, 2012: $268.8 million) and consisted of $3.9 million related to the
maximum principal amount of Cdn$4.5 million remaining outstanding of the
Debentures, $1.5 million tax payable provision and $0.4 million trade and other
payables. The $3.9 million liability related to the Debentures reflected the present
value of the remaining principal amount outstanding of the Debentures as at
September 30, 2012.
Non-IFRS Measures
The Corporation believes that in addition to conventional measures prepared in accordance with IFRS,
the Corporation and certain investors and analysts use certain other non-IFRS financial measures to
evaluate the Corporation's performance including its ability to generate cash flow and profits from its
operations. The Corporation has included certain non-IFRS measures in this document. Non-IFRS
measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be
comparable to similar measures employed by other companies. The data is intended to provide
additional information and should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Readers are advised to read all IFRS accounting
disclosures presented in the Corporation’s Financial Statements for more detail.
For further information, please contact:
Mary Batoff, +1 416 306 3072 or mary@firsturanium.ca
Cautionary Language Regarding Forward-Looking Information
This news release contains and refers to forward-looking information based on current expectations.
All other statements other than statements of historical fact included in this release are forward-
looking statements (or forward-looking information). The Corporation’s plans involve various
estimates and assumptions and its business and operations are subject to various risks and
uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see the
Corporation's most recent Annual Information Form and most recent Management Discussion and
Analysis on file with the Canadian provincial securities regulatory authorities on SEDAR at
www.sedar.com. These forward-looking statements are made as of the date hereof and there can be
no assurance that such statements will prove to be accurate, such statements are subject to
significant risks and uncertainties, and 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 that are included herein, except in accordance with applicable securities
laws.
www.firsturanium.com
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