Uranium Participation Corp.’s estimated net asset value at Jan. 31, 2018, was $459.3-million or $3.47 per share. As at Jan. 31, 2018, UPC’s uranium investment portfolio is as shown in the attached table.
(in thousands of Canadian dollars, except quantity amounts) Quantity Fair Value
Investments in Uranium:
Uranium oxide in concentrates (“U3O8”) 13,484,354 lbs $ 364,679
Uranium hexafluoride (“UF6”) 1,117,230 KgU $ 86,525
Total $ 451,204
U3O8 fair value per pound:
– In Canadian dollars 1 $ 27.04
– In United States dollars $ 22.00
UF6 fair value1 per KgU:
– In Canadian dollars 1 $ 77.45
– In United States dollars $ 63.00
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 $1.2293.
On January 31, 2018, the common shares of UPC closed on the TSX at a value of CAD$3.90, which represents a 12.39% premium to the net asset value of CAD$3.47 per share.
On December 29, 2017, the Corporation entered into an agreement with a primary UF6 conversion supplier to sell the conversion components contained in 786,241 KgU as UF6. The sale was completed on January 31, 2018 and resulted in the exchange of 786,241 KgU as UF6 for 2,054,330 pounds U3O8 plus cash consideration of US$3,538,000. In connection with this transaction, the Corporation also amended its storage arrangements with the primary supplier to provide for beneficial storage terms that are fixed for the period through December 31, 2028. This transaction has simplified UPC’s uranium holdings and, most significantly, will provide storage price certainty on a significant portion of the Corporation’s uranium holdings for a period of 11 years.
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.