Fin24

First Uranium narrows losses

2012-11-12 13:19

Johannesburg - First Uranium reported losses from its continuing operations of $5.6m during the three months ended September‚ the company’s second quarter of the 2013 financial year‚ compared to a loss of $15.9m during the same period last year.

For the six months ended in September‚ losses narrowed to $16m compared to $28.2m during the previous comparable period.

First Uranium also reported that profits from its discontinued operations amounted to $74.3m during the September quarter and $108.6m in the interim.

This was compared to quarterly losses of $13.4m and the interim loss of $33.2m reported during the comparable period.

“The primary drivers for the improvements over comparative periods were the $78.9m profit on disposal of the corporation’s principal assets, along with the derivative income related to the discontinued operations‚” the company said.

During the September quarter‚ First Uranium sold its gold and uranium tailings treatment subsidiary‚ Mine Waste Solutions‚ to AngloGold Ashanti for $335m‚ as well as its gold and uranium mine and processing plan, Ezulwini, to Gold One for $70m.

The sales were executed as part of plans by the miner to settle its outstanding debts‚ which subsequently led to the company delisting from the JSE and the Toronto Stock Exchange.

The company said that as at end of September‚ current assets were $65.2m (March 31: $4.2m)‚ of which $60.3m were restricted cash.

“The restricted cash comprised of $30m related to the deferred payments pursuant to the transactions and $30.3m related to the initial distribution to shareholders on October 1‚” the company said.

Current liabilities amounted to $5.8m at the end of Q2 2013 (March 31: $268.8m) and consisted of $3.9m related to the maximum principal amount of C$4.5m remaining outstanding of the debentures‚ a $1.5m tax payable provision and $0.4m for trade and other payables.