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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of August 2000
International Uranium Corporation
(Translation of registrant's name into English)
Independence Plaza, Suite 950, 1050 Seventeenth Street, Denver, CO 80265
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- ________________.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
International Uranium Corporation
---------------------------------
(Registrant)
Date: August 30, 2000 By: /s/ Ron F. Hochstein
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Ron F. Hochstein, President
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EXHIBIT INDEX
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EXHIBIT
NUMBER DESCRIPTION
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<S> <C>
1 3rd Quarter 2000 Report
2 Financial Statements
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REPORT TO SHAREHOLDERS
3RD QUARTER 2000
(U.S. DOLLARS)
At the beginning of this quarter, International Uranium Corporation (the
"Company") initiated implementation of a plan to significantly reduce overheads
and focus its efforts and resources on the development of the alternate
feed/uranium-bearing waste recycling business. Several initiatives were
undertaken to sell the U.S. based uranium mining and exploration assets. During
the quarter, the mining operations center located in Fredonia Arizona and mining
equipment were sold, and a number of parties were approached regarding the sale
of the U.S. based mining and exploration properties. Significant reductions in
staff at the Company's Denver office and at the White Mesa Mill (the "Mill")
were made in order to reduce overhead costs. The Company continues to have a
strong working capital position of $14,036,104, as of June 30, 2000, of which
$5,807,807 is cash and cash equivalents.
The Company continued to develop the alternate feed business with several
contacts made during the quarter. A proposal was submitted to IT Corporation,
the U.S. Army Corp. of Engineers contractor on the Linde Formerly Utilized Sites
Remedial Action Program ("FUSRAP") site, located in Tonawanda, New York. The
Company has already received material from this site under the Ashland 1 and
Ashland 2 contracts and is well positioned to process additional FUSRAP material
from this site. If the Company is successful in being awarded this project, the
Mill will begin receiving the Linde material in the first quarter of fiscal year
2001.
The Mill's processing operations continued in a standby mode during this
quarter. Mill personnel continued to receive alternate feed materials and to
perform routine maintenance in preparation for the next alternate feed run.
Metallurgical test programs for potential alternate feed projects were also
performed in support of the Company's alternate feed program.
Activities on the Mongolian Joint Venture included the shutdown and reclamation
of the two field camps in order to reduce the project holding costs. Discussions
are continuing with other investors and interested parties regarding possible
participation in the Joint Venture in order to further exploration efforts.
As a result of the Company's conventional ore processing run, the Company
continues to hold inventories of both uranium concentrates and vanadium
pentoxide. Spot market volume during the quarter was 3 million pounds, which
brings the total volume for the first half of calendar year 2000 to just over 6
million pounds, only 40 percent of the volume for the same period last year.
Uranium spot market prices continued downward, decreasing from $9.80 per pound
U3O8 at the beginning of the fiscal year, to $8.10 per pound at the end of the
quarter, compared to $9.20 three months earlier. During the quarter, spot
sellers continued to compete aggressively for limited sales, resulting in the
decline in price. Most analysts do not expect uranium spot market prices to
improve during the next six to nine months because of continued weak demand.
During the quarter, the Company sold 150,000 pounds of U3O8 at an average price
of $8.65 per pound.
The vanadium market has been quite volatile over the past nine months. Prices
began the year near $1.80 per pound V2O5, fell to $1.30 per pound by the end of
the first quarter, rose to $2.40 per pound by the end of the second quarter, and
as of the end of the current quarter, were back down to $2.05 per pound. The
Company was able to sell approximately 960,000 pounds of vanadium during
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the quarter at an average price of $1.91 per pound. The Company continues to
hold about 310,000 pounds of vanadium in inventory and is continuing to seek
further opportunities to sell this in the near term.
FINANCIAL REVIEW
Total revenues for the nine-month period ending June 30, 2000, were $9,431,424.
Uranium sales were $6,608,500, vanadium sales were $2,183,424, while process
milling fees relating to the Company's alternate feed activities totaled
$639,500. These revenues were approximately 20% less than those realized over
the same period last year when the Company had uranium sales of $7,520,450 and
process milling fees of $4,288,515, for total revenues of $11,808,965.
Through June 30, 2000, 600,000 pounds of uranium were sold compared to 550,000
pounds during the same period last year. Gross profits from uranium sales
through June 30, 2000 were $921,000, compared to $1,103,102 during the same
period in 1999. For the nine-month period ending June 30, 2000, 1,172,579 pounds
of vanadium were sold at an average price of $1.86 per pound, resulting in gross
profits of $349,380.
The Company incurred a net loss of $769,225 from process milling (alternate
feed) activities in 2000, which consisted primarily of mill stand-by costs of
$1,045,987, as compared to gross profits from process milling activities of
$1,034,689 in 1999. To date, this year's alternate feed processing activities
have consisted primarily of the receipt, sampling and analysis of the Ashland 1
material with no actual processing being conducted. Approximately 19,000 tons of
material was received during the quarter bringing the total received to over
104,000 tons from the Ashland 1 site. The Company receives a recycling fee when
the material is delivered, which is recorded as deferred revenue until the
material is processed.
Selling, general and administrative expenses for the nine-month period ending
June 30, 2000, were $3,128,338 or 33% of revenues compared to $3,595,147 or 30%
of 1999 revenues. The decrease of $466,809 related primarily to the Company's
decision during the second fiscal quarter to significantly reduce overhead costs
and focus its efforts and resources on the development of the alternate
feed/uranium-bearing waste recycling business. The Company is beginning to
realize the benefits of corporate staff reductions and closure of the mining
operations support facilities in Fredonia, Arizona. These benefits will continue
throughout the remainder of the year.
The write-down of uranium and vanadium inventories in the second fiscal quarter,
the decrease in recognized alternate feed profits along with mill stand-by
costs, and selling, general and administrative expenses the Company sustained a
net operating loss of $4,480,266 for the current nine-month period ending June
30, 2000. This loss was partially offset by the income benefit of the change in
the Mill reclamation obligations and net interest and other income, resulting in
a net loss after taxes of $2,640,341. The reduction in the Company's net loss
after taxes from the previous nine-month period ending June 30, 1999 of
$5,224,126 was due in large part to a significantly smaller inventory
write-down.
Through the third fiscal quarter, the Company provided $942,342 of cash from
operations compared to $4,604,925 used in operations during the same period last
year. This was due primarily to decreases in inventory and trade receivables
partially offset by changes in reclamation liabilities and
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accounts payable. During June 2000, the Company successfully completed the sale
of its surplus mining equipment located in Fredonia Arizona. Total proceeds from
the sale of equipment and land for the nine-month period ending June 30, 2000,
were $361,399. Due to the Company's decision to place the Mongolian Joint
Venture project on stand-by, expenditures in Mongolia have been reduced to
$254,851 as compared to $804,126 during the same period in 1999. Net working
capital as of June 30, 2000, was $14,036,104 of which $5,807,807 consisted of
cash and cash equivalents.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
The Company wishes to caution readers that disclosures made in the foregoing
Financial Review and elsewhere in this Report to Shareholders represent
forward-looking statements. These forward-looking statements involve known and
unknown risks and uncertainties which may cause the actual results, performance,
or achievements of the Company to be materially different from any future
results, performance, or achievements expressed or implied by any
forward-looking statements made by or on behalf of the Company.
Risk factors that affect the Company's results and the above discussion include,
but are not limited to, volatility and sensitivity to market prices for uranium
and vanadium, competition, environmental regulations, changes to reclamation
requirements, the impact of changes in foreign currencies' exchange rates,
political risk arising from operating in Mongolia, changes in government
regulation and policies including trade laws and policies, demand for nuclear
power, dependence on a limited number of customers, replacement of reserves and
production, the ability to develop the alternate feed business, receipt of
permits and approvals from governmental authorities (including amendments for
each alternate feed transaction) and other operating and development risks.
As a result of the foregoing and other factors, no assurance can be given as to
the future results, levels of activity and achievement.
ON BEHALF OF THE BOARD
/s/ RON F. HOCHSTEIN
Ron F. Hochstein
President and Chief Executive Officer
August 24, 2000
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INTERNATIONAL URANIUM CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNITED STATES DOLLARS) (UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30, 2000 SEPTEMBER 30, 1999
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<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 5,807,807 $ 469,407
Trade and other receivables 1,726,824 2,226,303
Inventories 6,714,723 11,930,637
Prepaid expenses and other 247,920 191,425
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14,497,274 14,817,772
Plant and equipment, net 5,234,443 6,790,627
Mongolia mineral properties 10,824,443 10,484,299
Notes receivable 200,088 202,016
Restricted cash and marketable securities 8,729,257 9,344,541
Deferred charge 4,248,875 4,248,875
Organizational costs, net -- 3,679
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$ 43,734,380 $ 45,891,809
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LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities $ 449,046 $ 2,132,614
Notes payable 12,124 1,049,493
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461,170 3,182,107
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Notes payable, net of current portion 11,299 22,811
Reclamation obligations 11,810,167 13,265,700
Deferred revenue 7,794,335 3,123,441
Deferred credit 4,320,000 4,320,000
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24,396,971 23,914,059
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SHAREHOLDERS' EQUITY
Share capital 37,439,402 37,439,402
Retained earnings (18,101,993) (15,461,652)
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19,337,409 21,977,750
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$ 43,734,380 $ 45,891,809
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</TABLE>
ON BEHALF OF THE BOARD
/s/ RON F. HOCHSTEIN /s/ LUKAS H. LUNDIN
Ron F. Hochstein, Director Lukas H. Lundin, Director
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INTERNATIONAL URANIUM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNITED STATES DOLLARS) (UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED JUNE 30
2000 1999
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<S> <C> <C>
OPERATIONS
Revenue
Uranium sales $ 6,608,500 $ 7,520,450
Vanadium sales 2,183,424 --
Process milling 639,500 4,288,515
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Total revenue 9,431,424 11,808,965
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Costs and expenses
Uranium cost of sales 5,687,500 6,417,348
Vanadium cost of sales 1,834,044 --
Process milling expenditures 1,408,725 3,253,826
Selling, general and administrative 3,128,338 3,595,147
Write-down of inventories 1,026,415 3,912,042
Depreciation 826,668 485,136
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13,911,690 17,663,499
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Loss before the following (4,480,266) (5,854,534)
Decrease in reclamation obligations 1,455,533 --
Net interest and other income 384,642 630,558
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Loss before taxes (2,640,091) (5,223,976)
Provision for income taxes 250 150
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LOSS FOR THE PERIOD $ (2,640,341) $ (5,224,126)
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Loss per common share $ (0.04) $ (0.08)
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(DEFICIT) RETAINED EARNINGS
(Deficit) Retained earnings, beginning of period (15,461,652) 1,636,025
Loss for the period (2,640,341) (5,224,126)
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DEFICIT, END OF PERIOD $(18,101,993) $ (3,588,101)
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</TABLE>
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INTERNATIONAL URANIUM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
(UNITED STATES DOLLARS) (UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED JUNE 30
2000 1999
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<S> <C> <C>
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Loss for the period $ (2,637,266) $ (5,224,126)
Items not affecting cash
Depreciation and amortization 823,593 485,136
Loss on sale of equipment and land 47,222 --
Amortization of uranium sales contract purchase cost -- 729,730
Write-down of inventories 1,026,415 3,912,042
Decrease in reclamation liabilities (1,455,533) --
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(2,195,569) (97,218)
Changes in non-cash working capital items
Decrease in marketable securities -- 11,731
Decrease in trade and other receivables 499,478 2,649,684
Decrease (increase) in inventories 4,410,067 (7,659,026)
Increase in other current assets (88,066) (260,849)
(Decrease) increase in accounts payable and accrued liabilities (1,683,568) 750,753
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NET CASH PROVIDED BY (USED IN) OPERATIONS 942,342 (4,604,925)
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INVESTING ACTIVITIES
Properties, plant and equipment 50,286 (1,614,561)
Mongolia mineral properties (254,851) (804,126)
Proceeds from sale of surplus equipment and land 361,399 --
Collection of notes receivable 1,928 834
Decrease in restricted cash and marketable securities 615,284 79,157
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NET CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES 774,046 (2,338,696)
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FINANCING ACTIVITIES
(Decrease) increase in notes payable (1,048,882) 4,970,625
Increase (decrease) in deferred revenue 4,670,894 (575,611)
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NET CASH PROVIDED BY FINANCING ACTIVITIES 3,622,012 4,395,014
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Increase (decrease) in cash and cash equivalents 5,338,400 (2,548,607)
Cash and cash equivalents, beginning of period 469,407 6,282,275
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CASH AND CASH EQUIVALENTS, END OF PERIOD $ 5,807,807 $ 3,733,668
============ ============
SUPPLEMENTARY CASH FLOW INFORMATION
Cash interest paid $ 51,930 $ 16,332
Cash interest received $ 507,764 $ 646,402
</TABLE>
