PRESS RELEASES 1/13/2014 5:28:15 PM | Marketwired News

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

2014-01-13T22:28:15+00:00

 

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$ 526,6592.4%$ 615,949(12.5%)
Net asset value per common share - basic and diluted5.074.952.4%5.79(12.4%)
U3O8 spot price(1) (US$) at period end date36.2535.003.6%42.00(13.7%)
UF6 spot price(1) (US$) at period end date102.50100.252.2%120.00(14.6%)
Noon US$"CAD$ exchange rate at period end date1.05991.05530.4%1.02853.1%
      
 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 diluted5.606.30(11.1%)6.70(16.4%)
U3O8 spot price(1) (US$) at period end date42.0048.50(13.4%)52.00(19.2%)
UF6 spot price(1) (US$) at period end date119.75133.75(10.5%)141.00(15.1%)
Noon US$"CAD$ exchange rate at period end date0.99320.98630.7%0.98660.7%
(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.

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