Uranium Participation Corporation Reports Uranium Transactions and Estimated Net Asset Value at October 31, 2019
TSX Trading symbol: U
TORONTO, Nov. 14, 2019 /CNW/ - Uranium Participation Corporation ("UPC") (TSX:U) reports its estimated net asset value at October 31, 2019 was CAD$571.9 million or CAD$4.14 per share. As at October 31, 2019, UPC's uranium investment portfolio consisted of the following: View PDF Version.
(in thousands of Canadian dollars, except quantity amounts) | Quantity | Fair Value | ||
Investments in Uranium: | ||||
Uranium oxide in concentrates ("U3O8") | 15,349,516 lbs | $ | 484,799 | |
Uranium hexafluoride ("UF6") | 700,000 KgU | $ | 77,381 | |
$ | 562,180 | |||
U3O8 fair value1 per pound: | ||||
- In Canadian dollars1 | $ | 31.58 | ||
- In United States dollars | $ | 24.00 | ||
UF6 fair value1 per KgU: | ||||
- In Canadian dollars1 | $ | 110.54 | ||
- In United States dollars | $ | 84.00 | ||
1 | Fair values are month-end spot prices published by Ux Consulting Company, LLC, translated at the Bank of Canada's month-end daily exchange rate of $1.3160. |
On the last trading day of October 2019, the common shares of UPC closed on the TSX at a value of CAD$3.84, which represents a 7.25% discount to the net asset value of CAD$4.14 per share.
During October 2019, UPC entered into commitments to sell the conversion component contained in 300,000 KgU as UF6. This transaction will result in the exchange of 300,000 KgU as UF6 for 783,856 pounds of U3O8 and cash consideration of USD$6,087,000. The transaction will occur in three equal tranches of 100,000 KgU as UF6 for delivery in January 2020, June 2020, and July 2020.
In addition, in October 2019, UPC entered into an agreement to purchase a total of 230,000 pounds of U3O8 at an average price of US$26.04. The transaction consists of three tranches of 100,000 pounds U3O8, 76,300 pounds as U3O8, and 53,700 pounds U3O8, for delivery in October 2019, January 2020, and June 2020, respectively. In October 2019, UPC took delivery of the first tranche of 100,000 pounds U3O8.
Following the completion of the various uranium transactions described above, UPC expects to hold a total of 16,263,372 pounds U3O8, and 400,000 KgU as UF6.
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. UPC provides investors with a unique opportunity to gain exposure to the price of uranium without the resource or project risk associated with investing in a traditional mining company. Additional information about Uranium Participation Corporation is available on SEDAR at www.sedar.com and on UPC's website at www.uraniumparticipation.com.
Caution Regarding Forward-Looking Information
This press release contains certain forward-looking statements and forward-looking information that are based on UPC's current internal expectations, estimates, projections, assumptions and beliefs. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intent", "estimate", "anticipate", "plan", "should", "believe" or "continue" or the negative thereof or variations thereon or similar terminology and include statements with respect to UPC's investment objectives, its uranium holdings, the transactions entered into with third parties, and agreements with respect thereto.
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 statement. These factors include, but are not limited to, changes in commodity prices and foreign exchange as well as the risk that UPC will not obtain the anticipated benefits of its agreements with third parties. For a description of the principal risks of UPC, see "Risk Factors" in UPC's Annual Information Form dated May 6, 2019 for the year ended February 28, 2019, a copy of which is available 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 statement.
SOURCE Uranium Participation Corporation
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