Welcome!

News Feed Item

Uranium Participation Corporation Reports Financial Results for the Period Ended November 30, 2016

TORONTO, ONTARIO -- (Marketwired) -- 01/12/17 -- Uranium Participation Corporation (TSX: U) ("UPC" or the "Corporation") today filed its Financial Statements and Management's Discussion & Analysis ("MD&A") for the period ended November 30, 2016. Both documents can be found on the Company's website (www.uraniumparticipation.com) or on SEDAR (www.sedar.com). The highlights provided below are derived from these documents and should be read in conjunction with them. All amounts are in Canadian dollars, unless otherwise noted.

Selected financial information:

----------------------------------------------------------------------------
                                November  August 31,     May 31,    February
                                30, 2016        2016        2016    29, 2016
----------------------------------------------------------------------------
Net asset value (in thousands)$  388,530  $  498,140  $  535,372  $  649,479
Net asset value per common
 share                        $     3.22  $     4.31  $     4.63  $     5.62
U3O8 spot price(1) (US$)      $    18.25  $    25.25  $    27.25  $    32.15
UF6 spot price(1) (US$)       $    53.40  $    72.25  $    77.00  $    90.00
Foreign exchange noon-rate
 (US$ to CAD$)                    1.3426      1.3124      1.3100      1.3523
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) Spot prices as published by Ux Consulting Company, LLC ("UxC").

Overall Performance

Total equity, or the value of the Corporation's assets minus its liabilities ("Net Asset Value" or "NAV"), decreased by $109.6 million during the three months ended November 30, 2016. This equates to a reduction in the NAV per common share of $1.09.

The net loss for the three months ended November 30, 2016, of $128.5 million, was primarily due to unrealized net losses on investments in uranium of $127.6 million and operating expenses of $1.0 million.

Unrealized net losses on investments in uranium, during the three months ended November 30, 2016, were caused by decreases in the spot prices of U3O8 and UF6, partly offset by the increase in the U.S. dollar to Canadian dollar exchange rate.

Operating expenses of $1,015,000, partially offset by income from lending and/or relocation of uranium of $100,000, for the three months ended November 30, 2016, represents approximately 0.1% of the Corporation's NAV at February 29, 2016.

Current Market Conditions

Uranium prices continued to be under downward pressure throughout the reporting period. Prices started the quarter ending November 30 2016, at a high of US$25.25 per pound U3O8, but fell 29% to reach a low of US$18.25 per pound U3O8 by the end of November 2016. During the 2017 fiscal year, the uranium price has dropped 43%, from US$32.15 per pound U3O8 at February 29, 2016 and the price per pound U3O8, as of November 30, 2016, represents a 13-year low. Subsequent to the end of the reporting period, the spot price per pound U3O8 increased on renewed utility buying interest at the end of the calendar year, and is now trading back over US$22.00 per pound U3O8.

Uranium prices prior to the Fukushima events in 2011 were in the range of US$70.00 per pound U3O8, and analysts continue to point to certain increases in primary mine production (despite the negative price signals) and excess secondary supplies as the reasons for the persistent oversupply in the market. The extended bear market has, however, begun to take its toll on production, with cutbacks, delayed expansions and cancelled projects having been announced in recent months. With respect to demand, the slow pace of reactor restarts in Japan, combined with the relatively low levels of utility contracting during 2016, have failed to provide support for a sustained rally in prices, despite a decline in the spot price to levels not seen since 2004.

The current low level of contracting volume is expected, however, to become a positive driver for price increases going forward, as substantial levels of utility reactor requirements remain uncommitted in future years. UxC tracks the five-year forward uncommitted reactor requirements of global utilities and reported that these relatively near-term needs increased 18% in calendar 2016, with uncommitted needs of global reactors estimated to total 1 billion pounds U3O8 over the next 10 years. With production curtailments and poor visibility for producers to a uranium price that will incentivize new material sources of future production through the development process, there is potential for a sustained period of supply shortfall to emerge.

The broader fundamentals of the nuclear energy market continue to be positive in contrast to the near term uranium price weakness. According to the World Nuclear Association, presently, 448 reactors are operable around the world with 58 under construction and an additional 167 units firmly planned or ordered. The ten new reactors connected to the grid globally in calendar 2015 resulted in a net gain of almost 5,000 Megawatt electric (MWe) of installed nuclear capacity - which represents the highest annual growth in capacities in the past 25 years. This growth is being driven largely by the emerging markets of China, India, South Korea and Russia, however, the more traditional, developed markets are also building new reactors. The United Kingdom is advancing major new nuclear power projects on multiple sites and the U.S. added one unit to its fleet in 2016, with four more currently under construction. The need for large amounts of reliable baseload electricity, environmental concerns around carbon emissions, and crisis-level air pollution, are driving decision makers increasingly towards nuclear energy. Even with significant competition from heavily subsidized renewables and low natural gas prices, the need for grid-stabilizing, baseload, nuclear power should continue to be recognized and valued in the global energy mix. This was reinforced recently in the United States, where the New York and Illinois state legislatures both passed bills to ensure nuclear power plants remain an important part of their regional energy mix. Also, in Switzerland, voters defeated a referendum which would have phased out nuclear energy in that country.

With global nuclear energy capacities expected to grow between two and three percent each year for the next decade and beyond, the long term outlook for the uranium market remains positive.

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.

Cautionary Statement Regarding Forward-Looking Statements

Certain information contained in this press release constitutes forward looking statements or forward looking information. These statements can be identified by the use of forward looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "plan", "should", "believe" or "continue" or the negative thereof or variations thereon or similar terminology. In particular, this press release contains forward-looking information pertaining to expectations regarding uranium spot prices and uranium market factors, including expectations regarding reactor restarts, levels of uncommitted utility reactor requirements, anticipated contracting cycle and market supply and demand, the development of new nuclear power projects and other statements regarding the outlook for the uranium industry and market.

By their very nature, forward looking statements involve numerous factors, assumptions and estimates. A variety of factors, many of which are beyond the control of UPC, may cause actual results to differ materially from the expectations expressed in the forward looking statements. For a list of the principal risks of an investment in UPC, please refer to the "RISK FACTORS" section in the Corporation's Annual Information Form dated May 11, 2016 available under UPC's profile at www.sedar.com. These and other factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward looking statements. Although management reviews the reasonableness of its assumptions and estimates, unusual and unanticipated events may occur which render them inaccurate. Under such circumstances, future performance may differ materially from those expressed or implied by the forward looking statements. Except where required under applicable securities legislation, UPC does not undertake to update any forward looking information.

Contacts:
Uranium Participation Corporation
David Cates
President & Chief Executive Officer
(416) 979-1991 Ext. 362

Uranium Participation Corporation
Mac McDonald
Chief Financial Officer
(416) 979-1991 Ext. 242

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.