Uranium Participation Corporation (“UPC”) (TSX:U) reports its estimated net asset value at July 31, 2018 was CAD$592.6 million or CAD$4.29 per share. As at July 31, 2018, UPC’s uranium investment portfolio consisted of the following:
|
(in thousands of Canadian dollars, except quantity amounts) |
Quantity |
Fair Value |
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Investments in Uranium: |
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|
Uranium oxide in concentrates (“U3O8“) |
14,159,354 lbs |
$ |
473,683 |
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|
Uranium hexafluoride (“UF6“) |
1,117,230 KgU |
$ |
111,254 |
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|
$ |
584,937 |
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U3O8 fair value1 per pound: |
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– In Canadian dollars1 |
$ |
33.45 |
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– In United States dollars |
$ |
25.70 |
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UF6 fair value1 per KgU: |
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– In Canadian dollars1 |
$ |
99.58 |
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|
– In United States dollars |
$ |
76.50 |
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|
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 $1.3017. |
On the last trading day of July 2018, the common shares of UPC closed on the TSX at a value of CAD$4.42, which represents a 3.03% premium to the net asset value of CAD$4.29 per share.
On May 22, 2018, UPC announced a bought-deal equity offering of 4,880,000 common shares, at a price of CAD$4.10 per share, for gross proceeds of CAD$20,008,000, with an overallotment option of an additional 732,000 common shares at CAD$4.10 per share. The offering was completed on May 31, 2018 and the overallotment option was fully exercised. Accordingly, UPC issued 5,612,000 common shares for total gross proceeds of CAD$23,009,200. The proceeds of the offering are being used by UPC to fund purchases of U3O8 and/or UF6 and for general corporate purposes.
With the proceeds of the May 2018 equity financing, UPC entered into commitments to purchase a total of 675,000 pounds of U3O8 at an average price of US$22.76 (CAD$29.84). As at July 31, 2018, UPC has taken delivery of all 675,000 pounds U3O8.
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.