|By Marketwired .||
|December 21, 2012 10:37 PM EST||
TORONTO, ONTARIO -- (Marketwire) -- 12/22/12 -- Energy Fuels Inc. (TSX:EFR) ("Energy Fuels" or the "Company") today reported its financial results for the quarter and year-ended September 30, 2012 ("FY-2012"). The Company's Audited Annual Consolidated Financial Statements, along with Management's Discussion and Analysis and Annual Information Form, have been filed on the System for Electronic Document Analysis and Retrieval and may be viewed at www.sedar.com. Unless noted otherwise, all dollar amounts are in US dollars.
Transformational Year for Energy Fuels
The past year was transformational for Energy Fuels, as the Company attained a dominant production and resource position within the uranium sector's single largest market, the United States. In a period of less than six months between February 2012 and July 2012, Energy Fuels augmented its business, successfully capitalizing on growth opportunities in a highly dynamic market environment. Within this short period of time, Energy Fuels became the largest conventional uranium producer in the US, one of the largest holders of NI 43-101 compliant uranium resources in the US, and completed two capital market financings that raised aggregate gross proceeds of over Cdn $30 million.
Through the acquisition of all of the US-based uranium mining and production assets of Denison Mines Corp. (the "Denison Acquisition") in June 2012, Energy Fuels now owns and controls the White Mesa uranium mill ("White Mesa Mill"), which is the only operating uranium mill in the US. When combined with the Company's large, proximal resource base, the White Mesa Mill positions Energy Fuels to provide a long-term supply of uranium production from conventional ore as market conditions warrant.
In addition, through its February 2012 acquisition of Titan Uranium Inc. (the "Titan Acquisition"), Energy Fuels acquired the Sheep Mountain Project, one of the largest uranium development projects in the US. The Sheep Mountain Project has 30.3 million pounds of uranium oxide ("U3O8"), contained in approximately 12.9 million tons of Measured and Indicated Resources with an average grade of 0.12% U3O8. Shortly after completing the Titan Acquisition, Energy Fuels completed a pre-feasibility study on the Sheep Mountain Project. Using a 7% discount rate and a $60 per pound uranium price (which is the current Ux long-term price of uranium), the Sheep Mountain Project's estimated net present value is $161 million which, in itself and excluding Energy Fuels' other assets, represents a substantial premium to the Company's current market capitalization.
Despite being the world's largest producer of nuclear energy, the US currently imports over 90% of the uranium required to fuel its reactors. The Company believes its US-based portfolio of assets represents a important source of domestic supply, which should be expected to grow in strategic importance following the expected discontinuation of the US-Russia HEU agreement in December 2013, which currently provides approx. 45% of the uranium supply for the United States.
Selected Annual Information
The following selected financial information was obtained from or calculated using the Company's consolidated financial statements for the following fiscal years:
---------------------------------------------------------------------------- Year ended Year ended Year ended $000, except per share September 30, September 30, September 30, data 2012 2011 2010 (1) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Results of Operations: Total revenues $ 25,028 $ - $ - Net income (loss) 16,973 (3,567) (4,315) Basic and diluted earnings (loss) per share 0.06 (0.04) (0.05) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- As at As at As at September 30, September 30, September 30, 2012 2011 2010 (1) ---------------------------------------------------------------------------- Financial Position: Working capital $ 44,080 $ 6,788 $ 3,158 Property, plant and equipment 133,085 33,292 480 Total assets 239,808 43,493 33,793 Total long-term liabilities 38,447 452 333 ---------------------------------------------------------------------------- (1) As reported under Canadian GAAP
Financial and Operational Highlights for FY-2012
-- Completed the Denison Acquisition and Titan Acquisition on June 29, 2012 and February 29, 2012, respectively. -- Energy Fuels' sales, following completion of the Denison Acquisition, were 447,000 pounds U3O8 at an average realized price of $55.83 per pound for the quarter and year-ended September 30, 2012. Approximately 44% of these sales were under existing uranium supply contracts. -- Energy Fuels' production at the White Mesa Mill, following the completion of the Denison Acquisition, totaled 310,480 pounds of U3O8 for the quarter and year-ended September 30, 2012. Production included 79,764 lbs U3O8 from alternate feed materials and 230,716 lbs U3O8 from Arizona 1 and Daneros conventional ore. Production cash cost was $44.26(1) per lb U3O8 for the quarter and year-ended September 30, 2012. -- As of September 30, 2012, the Company had working capital of $44.1 million, including cash and cash equivalents of $13.7 million, marketable securities of $1.6 million and 225,000 pounds of U3O8 inventory. Based on spot market prices at September 30, 2012, this inventory had a value of $10.5 million. -- Raised aggregate gross proceeds of Cdn $30.2 million through a Cdn $8.2 million equity financing in June 2012 and a Cdn $22 million unsecured, subordinated convertible debenture offering in July 2012. -- Subsequent to September 30, 2012, Energy Fuels announced that, in order to manage the current challenging uranium market environment, the Company would focus on its lower cost sources of production at its Arizona Strip mines and alternate feed production. As announced on October 17, 2012, the Company placed its Daneros and Beaver mines on standby. In December 2012, the Pandora mine was also placed on standby.
Reconciliation of non-GAAP financial measures
The Company has included certain non-GAAP financial measures in this news release. These measures are not defined under International Financial Reporting Standards ("IFRS") and should not be considered in isolation. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these measures is meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with IFRS. These measures are not necessarily standard and therefore may not be comparable to other issuers.
---------------------------------------------------------------------------- (1) Cash cost of production per pound is a non-GAAP financial measure defined as the costs of mining the ore fed to the mill in the year, which include fair value adjustments to beginning stockpile inventories, plus the costs of milling less a credit for vanadium produced in the period and excluding depreciation and amortization, divided by lbs. of U3O8 produced during the year.
Energy Fuels Outlook for FY-2013
Energy Fuels will continue to manage its operations in a prudent, conservative manner until the expected improvement in the uranium market is observed and sustained. This strategy entails operations that will focus on lower cost sources of production and levels of output that are generally tailored toward fulfilling the Company's delivery requirements under its uranium supply contracts. As such, Energy Fuels expects that 90-95% of its FY-2013 sales will be pursuant to existing term contracts. Development and maintenance of the Company's asset portfolio is expected to continue to position Energy Fuels to increase production upon the occurrence of improved market conditions. Highlights for Energy Fuels' outlook for FY-2013 are as follows:
-- FY-2013 Sales: Uranium sales are estimated to be 1,000,000 to 1,050,000 lbs U3O8, of which 957,000 lbs is expected to be sold under uranium supply contracts and the remainder is expected to be sold into the spot market. Vanadium sales ("V2O5") are estimated to be between 1,900,000 and 2,000,000 lbs. -- FY-2013 Production: Uranium production is estimated to be approximately 1,000,000 lbs U3O8 sourced from both conventional ore and alternate feed sources. Conventional ore production is expected to include the Beaver and Pandora ore contained in stockpile as of September 30, 2012, as well as the Beaver and Pandora ore mined during FY-2013. Given the expected U3O8 production from Beaver and Pandora ores, Energy Fuels estimates that it will produce between 1,900,000 and 2,000,000 lbs of V2O5 in FY-2013. -- FY-2013 Mining Activities: Mining on the Arizona Strip is expected to continue during FY-2013 at the Arizona 1 and Pinenut mines, although this ore is not expected to be milled until FY-2014, in addition to the Daneros ore currently stockpiled. Effective October 17, 2012, the Company placed the Daneros and Beaver mines on standby. The Pandora mine was previously expected to be shut down in mid-2013 but was placed on standby in December 2012. -- FY-2013 Project Development: Energy Fuels plans to invest in high priority development projects and maintain general permitting and exploration activities in FY-2013. Development of the Canyon mine in Arizona is planned to continue in FY-2013, with the start of shaft sinking planned to begin in early FY-2013. The estimated cost of development activities at the Canyon mine is expected to be $4.4 million for FY-2013. Energy Fuels plans to continue permitting the Sheep Mountain Project at an estimated cost of $1.1 million for FY-2013. Other permitting and exploration expenditures are estimated to be $1.8 million for FY-2013.
Well-Positioned for Current Market Conditions and Future Growth
Energy Fuels believes it is well positioned as the leading conventional uranium producer in the US, with the potential to become a significant uranium producer on a global scale. The Company's current production profile accounts for approx. 25% of US production, and the Company owns a portfolio of assets which provides a platform for significant production growth in the future. In the midst of relatively weak uranium spot prices, Energy Fuels is focusing on lower cost sources of production from its high-grade Arizona Strip mines and alternate feed materials in order to meet the delivery requirements under its existing uranium supply contracts. Energy Fuels has three existing contracts to deliver substantial quantities of uranium to US and international utilities. The in-place contracts include pricing terms which provide a premium to the current uranium spot price, which helps mitigate the challenges of current market conditions. In the event uranium spot prices return to pre-Fukushima levels of $70+ per pound, Energy Fuels believes it has the ability to substantially increase production at the White Mesa Mill over time, through the Company's Arizona Strip mines, Colorado Plateau mines (which would also include significant vanadium production), Henry Mountains Complex, and increased uranium-bearing alternate feed processing. In addition, the Sheep Mountain Project, a large stand-alone uranium project, is expected to produce 1.5 million pounds U3O8 from both open-pit and underground mining operations according to its 2012 prefeasibility study. As discussed below in the Market Outlook for FY-2013, Energy Fuels believes that uranium market conditions are improving.
Market Outlook for FY-2013
Energy Fuels expects improvements in the uranium market during FY-2013. It is currently seeing increased activity in the uranium market with both spot market transaction activity recently increasing and several long-term supply contract proposals from utilities being tendered during the past couple of months. Demand fundamentals within the uranium sector are strong, with China, Russia, India, the US, the UK, Saudi Arabia and Brazil continuing to develop nuclear power plants. Globally, there are 64 nuclear reactors under construction, and 483 nuclear reactors planned or proposed. The recent Japanese election results also appear to bode well for the re-start of Japanese reactors, as the Liberal Democratic Party, a proponent of nuclear power, won via a significant majority. In terms of supply, the discontinuation of the US-Russia HEU agreement in December 2013 is expected to remove up to 18 to 24 million pounds of uranium from the market, and recently announced delays of several new uranium development projects are expected to further constrict supply over the medium- to long-term. Energy Fuels believes the aforementioned market conditions will result in modest strengthening of the uranium spot price during FY-2013 with accelerated strengthening expected beyond FY-2013.
Stephen P. Antony, P.E., President & CEO of Energy Fuels, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical disclosure contained in this document.
About Energy Fuels: Energy Fuels is America's largest conventional uranium producer, supplying approximately 25% of the uranium produced in the U.S., and is also a significant producer of vanadium. The company operates the White Mesa Mill, which is the only conventional uranium mill currently operating in the U.S., capable of processing 2,000 tons per day of uranium ore. Energy Fuels has projects located throughout the Western U.S., including producing mines and mineral properties in various stages of permitting and development.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward Looking Information" within the meaning of applicable Canadian securities legislation, which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" "does not expect", "is expected", "is likely", "budget" "scheduled", "estimates", "forecasts", "intends", "anticipates", "does not anticipate", or "believes", or variations of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to". All statements, other than statements of historical fact, included herein are generally considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward- looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of December 20, 2012, which is available for view on the System for Electronic Document Analysis and Retrieval at www.sedar.com. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Aug. 28, 2015 12:30 PM EDT Reads: 134
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
Aug. 28, 2015 12:00 PM EDT Reads: 176
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
Aug. 28, 2015 11:37 AM EDT
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
Aug. 28, 2015 11:30 AM EDT
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 28, 2015 11:15 AM EDT Reads: 799
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Aug. 28, 2015 10:45 AM EDT Reads: 112
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Aug. 28, 2015 10:00 AM EDT
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Aug. 28, 2015 07:45 AM EDT Reads: 388
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
Aug. 28, 2015 07:30 AM EDT Reads: 541
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Aug. 28, 2015 03:00 AM EDT Reads: 340
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
Aug. 28, 2015 12:30 AM EDT Reads: 335
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
Aug. 27, 2015 06:15 PM EDT Reads: 388
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Aug. 27, 2015 01:00 PM EDT Reads: 291
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
Aug. 27, 2015 11:30 AM EDT Reads: 154
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
Aug. 26, 2015 07:00 AM EDT
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Aug. 2, 2015 11:15 AM EDT Reads: 539
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Aug. 1, 2015 10:00 AM EDT Reads: 470
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
Jul. 30, 2015 07:30 PM EDT Reads: 1,558
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Jul. 30, 2015 02:30 PM EDT Reads: 270
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Jul. 30, 2015 12:00 PM EDT Reads: 2,217