<PAGE> 1
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 February 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
----- -----
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
----- -----
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: February 16, 2000 By: /s/ Earl E. Hoellen
---------------------------------------
Earl E. Hoellen, President
<PAGE> 2
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Number Description
-------------- -----------
<S> <C>
1 1999 Annual Report
</TABLE>
<PAGE> 1
EXHIBIT 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders......................................1
Management's Discussion and Analysis........................4
Management's Report to the Shareholders.....................8
Auditors' Report to the Shareholders........................9
Consolidated Financial Statements..........................11
Notes to Financial Statements..............................13
</TABLE>
All dollar references in this report are expressed in U.S. dollars unless
otherwise indicated.
<PAGE> 2
TO OUR SHAREHOLDERS
A little over two years ago, your Company began its quest to become a
niche player in the global uranium industry. Our strategy was simple enough, but
at the same time bold and aggressive. With uranium prices above $12 per pound
and a strong vanadium market, we initiated mining operations at our
uranium/vanadium mines and began an ore purchase program for ore mined by third
parties in the vicinity of our White Mesa Mill. At that time, with the strong
vanadium credit, the cost of producing uranium from these mines would have been
among the lowest in the industry. We also advanced our uranium exploration
program in Mongolia through the 70% Company owned Gurvan-Saihan Joint Venture.
We established a strong marketing presence in the international nuclear fuel
market and began to secure both spot and long term contracts for the sale of
uranium. And, perhaps most importantly, we began to develop our uranium-bearing
waste recycling business. All of these activities we believed would help
contribute to our primary goal of increasing shareholder value.
In each of these areas of activity, we have had some big successes, but
also some disappointments. In our mining activities, like so many other resource
companies, we were adversely affected by declining commodity market prices. We
did successfully put three of our Colorado Plateau Mines into production,
producing approximately 81,000 tons of uranium/vanadium ore at costs in line
with our original budget estimates before suspending these operations in
mid-1999. However, the ore purchase program was a bust. Essentially all of the
independent miners who evaluated re-opening their mines decided against doing so
because of dramatic changes in environmental and regulatory requirements since
they last operated, as well as declining commodity prices. Without the
additional tonnage from these independents, the conventional mill run, which
commenced during the third quarter of the fiscal year, was much shorter than
originally anticipated. This impacted operating efficiencies and, ultimately,
unit production costs. In addition, we experienced certain operational problems
with the vanadium circuit, which had not operated since 1990, that contributed
to lower realized recoveries during this production run. Nevertheless, the
Company did successfully produce approximately 487,000 pounds of uranium
concentrates and approximately 2.0 million pounds of vanadium during the
conventional mill run.
In the area of property development and exploration, over the past two
years the Gurvan-Saihan Joint Venture discovered a new mineral deposit in the
Hairhan region of Mongolia and delineated over 22 million pounds of uranium
resources on Joint Venture lands. Leach amenability testing also confirmed that
the Hairhan deposit is highly prospective for mining by the in situ leaching
method. The Company also progressed work on the licensing of its Reno Creek in
situ property in Wyoming. However, both of these projects were put on standby
during the past fiscal year, again because of deteriorating uranium market
conditions.
So, what about the state of the uranium and vanadium markets. Last
year, I advised you that many industry experts believed the uranium market was
poised for the long-awaited recovery. However, nuclear fuel market conditions
during this past fiscal year continued to show the effects of surplus uranium
inventory, shifting government policies and aggressive selling by some of the
major uranium suppliers. Even though spot demand for uranium was higher than the
previous year by a factor of two, uranium prices ended 1999 below the $10 per
pound U3O8 threshold level for the second straight year. The vanadium market
also saw prices drop, albeit for different reasons. While there were no
significant vanadium inventories overhanging the market, primary production and
increased expansion plans have outpaced market demand, which contributed to
prices falling from over $5 per pound V2O5 at the start of the year to less than
$1.50 per pound by December, a near record low. And, unfortunately, most experts
believe the near term prospects for both of these markets are, generally, more
of the same.
While declining commodity markets seriously affected our conventional
mining, milling and exploration programs, IUC did have some notable success in
the development of the alternate feed, or uranium-bearing waste recycling
business. Regulated by the Nuclear Regulatory Commission ("NRC"), IUC's White
Mesa Mill has applied for and been granted license amendments for nine different
alternate feeds to be processed through the Mill. Furthermore, the Company has,
to date, successfully defended these license amendments from any challenges by
competitors and State of Utah regulators. As I advised you last year, the State
of Utah and IUC have had a disagreement over what classes of alternate feeds may
be processed at the Mill. This matter is currently on appeal before the NRC.
However, IUC has been working with the State to negotiate a settlement that will
provide the State with the regulatory comfort that it desires while still
allowing IUC to fully pursue its alternate feed business.
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Although there can be no guarantee that IUC and the State will successfully
resolve their dispute, we remain optimistic that this objective will be
achieved.
With respect to the commercial side of this business, IUC has concluded
contracts with both the government and private sectors for the recycling of
uranium-bearing waste materials, including materials from the U.S. government's
FUSRAP program. And, the number of potential sources of supply for these types
of materials continues to grow as the Company expands its business development
activities in this area. While there has been progress in this regard, such as
the award to the Company during 1999 of its second FUSRAP contract by the Army
Corps of Engineers, the Company has not to date developed the backlog of
business necessary to allow the White Mesa Mill to operate efficiently on a
continuous basis. Developing this backlog in the near term will be a
prerequisite if the Company is to continue with its pursuit of this business in
the future.
As a result of these factors, the Company sustained a loss for the
fiscal year of just under $17.1 million, or approximately $0.26 per share. Of
this loss, approximately $7.7 million was for the write down of the Company's
uranium and vanadium inventories, which was primarily attributable to weak
commodity prices. And, as a result of no reasonable expectation of price
recovery in these markets, the Company also elected to write off the entire
carrying value of all of its U.S. mineral properties, which resulted in an
additional loss of approximately $7.0 million. Fortunately, the Company's
working capital remained strong at approximately $11.6 million, or just under
$0.18 per share, at the end of the fiscal year.
As a result of the Company's performance during the past fiscal year,
as well as the diminished prospects for any appreciable and sustainable price
recovery in the uranium or vanadium markets in the near term, we believe that
the original business strategy outlined above has to be changed. Even though the
basic fundamentals for the uranium market remain positive in the long term,
given the weak near term prospects we do not believe that a company of our size
can afford to continue to invest in uranium exploration or primary production
activities at the present time. Therefore, the Company intends to marshal its
resources and concentrate solely on the continuing development of the alternate
feed, uranium-bearing waste recycling business. As I have commented to you
before, this business does not depend in any significant way upon the market
price for uranium. In many cases, the generators of these alternate feed
materials are willing to pay a recycling fee to IUC to process these materials
to recover uranium and then dispose of the remaining tailings. This gives IUC
the ability to process these alternate feeds and generate revenues that are
largely independent of uranium market prices.
So, for 2000, IUC intends to reduce its expenditures on its U.S.
uranium resource properties to minimum levels. The Company's Colorado Plateau
mining office has been closed and all U.S. mining property activities will be
centered in our Fredonia, Arizona office, with minimal staff. As for our
Mongolian operation, unless outside third party funding can be secured, this
project will also be placed in a shutdown mode, although we intend to continue
to hold our significant land position there. Because of IUC's favorable and
unique agreement with the Mongolian government, this can be accomplished at very
little cost. Finally, as a result of these changes, additional cost cutting
measures have and will continue to be implemented at our Denver headquarters
office.
While this reduction in exploration and mining activities is underway,
the Company will increase its focus on, and investment in, the development of
the alternate feed business. This will include the aggressive pursuit of
contracts for the supply of uranium-bearing waste materials for recycling
through the White Mesa Mill, as well as the pursuit of other uranium
contaminated materials that contain other metals that could be recovered at the
Mill. In addition, IUC will continue to try to resolve the remaining regulatory
uncertainties associated with this business, which we believe can be
accomplished before the end of the 2000 fiscal year.
While there are still both commercial and regulatory hurdles to
overcome in order to build a successful alternate feed business, we believe that
the development of this business, and of the White Mesa Mill's capabilities, is
the foundation for IUC's future success. However, we recognize that, from a
shareholder perspective, we must finally demonstrate the viability of this
concept this year. If we cannot do so, we will need to reassess our current
business plan with a view to pursuing other business opportunities.
IUC continues to believe that the opportunities for a niche player in
the global uranium industry remain great. However, as I noted to you last year,
in order to capitalize on these opportunities, we must remain flexible in our
operating posture, and selective in our application of resources. We expect that
this next year will be a pivotal
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one for IUC and will test our ability to do just that. I think the IUC team has
a clear understanding of the challenges that lie ahead and an appreciation for
what it will take to get us over the top. Furthermore, we remain committed to
our primary task of building long term value for you, our shareholders.
On behalf of the Board, the management and the employees of IUC, I'd
like to thank you for your continuing support.
/s/ Earl E. Hoellen
-------------------------------------
Earl E. Hoellen
President and Chief Executive Officer
3
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MANAGEMENT'S DISCUSSION AND ANALYSIS
The following discussion and analysis of the financial condition and
results of operations for International Uranium Corporation (the "Company") for
the fiscal year ended September 30, 1999 should be read in conjunction with the
consolidated financial statements and accompanying notes. The consolidated
financial statements are prepared in accordance with generally accepted
accounting principles in Canada.
RESULTS OF OPERATIONS
For the year ended September 30, 1999, the Company incurred a net loss
of $17,097,677, compared to a net profit of $1,617,331 for the year ended
September 30, 1998. This loss was attributable primarily to weak commodity
prices. While prices fluctuated somewhat during the year, the uranium market
ended the fiscal year at $9.75 per pound U3O8. The vanadium market saw prices
plunge dramatically from $5.37 per pound V2O5 at the beginning of the fiscal
year to $1.84 per pound by year's end. This caused the Company to write down its
ore stockpiles, which contain approximately seven pounds of vanadium for every
pound of uranium, and finished goods inventories by $7,709,170. These same low
commodity prices combined with low expectations of any appreciable price
recovery in the near term also resulted in the Company electing to reduce the
carrying value of all of its U.S. mineral properties to zero. The amount of this
write-off was $7,039,958. In addition, the Company also elected to write-off the
remaining unamortized portion of goodwill in the amount of $541,641.
During the year, the Company had total revenues of $14,046,832. Of
these revenues, $9,758,317 (69%) was from sales of uranium ("U3O8") and
$4,288,515 (31%) was derived from the Company's process milling of alternate
feeds. In addition, the Company delivered 400,000 pounds U3O8 to a customer
under a deferred sales arrangement. As such, the revenues and cost of revenues
for this transaction have not been recorded.
These results are significantly lower than the corresponding results
for the year ended September 30, 1998, where the Company had total revenues of
$32,940,876, consisting of $19,890,300 in U3O8 sales and $13,050,576 of revenues
from process milling of alternate feeds.
The spot market value of uranium remained depressed and basically flat
during the fiscal year. It began the fiscal year at $9.75 per pound U3O8, rose
to $10.85 in March, then declined during the remainder of the fiscal year back
to $9.75 in September. The spot market value of vanadium, however, suffered a
tremendous decline. It began the fiscal year at $5.37 per pound V2O5 and then
declined during the remainder of the fiscal year to $1.84 in September. As a
result, the Company elected to only sell a very small quantity of the V2O5 it
produced during the year. Also, due to the continued depressed price for U3O8,
the Company only sold U3O8 into existing contracts and elected not to enter into
any additional spot market contracts during the year.
Of the Company's 1999 uranium sales, 100% of the material was sourced
from uranium purchased under pre-existing contracts. The $9,758,317 of uranium
sales proceeds resulted from four separate sales transactions. Approximately 69%
of the sales revenues (61% of the material delivered) arose from long-term
contracts and the balance were from existing spot market contracts.
The Company's alternate feed projects this year consisted primarily of
the processing of over 44,000 tons of uranium-bearing soil materials received
from the Ashland 2 former defense site near Buffalo, New York. The Company
received a recycling fee for this project, which contributed $3,794,195, or 88%,
of the total process milling revenues for the year. The remaining alternate feed
revenues of $494,320 came primarily from the sale of a product from a prior
year's alternate feed project. The Company also produced approximately 160,000
pounds of U3O8 from another alternate feed source. The Company did not receive a
recycling fee for this project, and the U3O8 remains in inventory to be sold at
a later date. The Company's processing costs relating to alternate feeds totaled
$3,213,789 for 1999 resulting in a gross profit from alternate feeds of
$1,074,726.
Selling, general and administrative expenses for 1999 totaled
$4,445,190 compared to $3,580,149 in 1998. The increase was due to an increase
in outside legal and professional expenses related to the Company's development
of its alternate feed business and to mine standby costs due to the suspension
of mining operations. Depreciation, amortization and depletion expense was
$664,633 in 1999, compared to $734,267 in 1998. Net interest and other income
decreased to $857,739 in 1999 from $1,128,562 in 1998. These total revenues and
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expenses combined with the extensive write-offs stated above resulted in a net
loss of $17,097,677 in 1999 compared to net income before taxes of $1,858,892 in
1998.
The Company continued the mining of uranium and vanadium-bearing ores
from its Sunday and Rim Mine complexes in the Colorado Plateau District of
western Colorado and eastern Utah until mid-1999. At that time, the Company
elected to suspend mining operations as a result of continuing weak uranium and
vanadium prices and the expectation that these conditions would not improve for
the next few years. The Company has also elected to completely write-off the
carrying value of its U.S. mineral properties for the same reason. Prior to the
cessation of mining activities, approximately 87,250 tons of ore, with a U3O8
grade of 0.28% and a V2O5 grade of 1.9% were mined from company and independent
mines. All of the ore was shipped to the White Mesa Mill (the "Mill") and the
Company commenced the milling of this ore during June. As of September 30, 1999,
approximately 72,750 tons of ore had been fed to the mill leaving approximately
14,500 tons in stockpile. This stockpile was written down to the net realizable
value of $144,112 based on current spot market prices.
During fiscal 1999, the Mill produced 493,418 pounds U3O8 and 870,960
pounds V2O5. This includes both uranium produced from conventional ore as well
as uranium recovered from alternate feeds. During the first quarter of fiscal
2000, the conventional mill run was completed which produced an additional
157,709 pounds U3O8 and 1,125,520 pounds V2O5. Actual mill recoveries were lower
than historical levels due primarily to the short mill run and certain
operational problems. These inventories have been written down to spot market
prices as of September 30, 1999.
The Company suspended the application and review process for a permit
to mine from the Wyoming Department of Environmental Quality and for a source
material license from the Nuclear Regulatory Commission for the Reno Creek in
situ leach project, located in the Powder River Basin of Wyoming. This review
process could be reinstituted at any time. The Company has also elected to
write-off all of its investment and development expenditures related to this
project. These decisions were, again, related to weak market prices for uranium.
The Gurvan-Saihan Joint Venture, the Company's uranium development and
exploration program in Mongolia, conducted a limited field program during 1999,
focusing most of its efforts on data analysis and production cost modeling for
future mining operations. The Joint Venture has now delineated over 22 million
pounds of proven and probable resources for this program. Total cash
expenditures by the Company relating to this Joint Venture were $912,990 in
1999, compared to $3,209,363 in 1998.
The Company continued to increase its focus on acquiring and processing
alternate feeds during the year, which resulted in the Company successfully
processing over 44,000 tons of material from a former government weapons, or
FUSRAP (Formerly Utilized Sites Remedial Action Program), site near Buffalo, New
York. Based on the success of this project the Company signed a contract to
process materials from another FUSRAP site and began to receive these materials
in July. This project should generate over 100,000 tons of uranium-bearing
materials for recycle through the Mill, for which the Company will receive a
recycling fee in addition to retaining all of the uranium recovered. The
recycling fee is paid when the material is delivered to the Mill and recorded as
deferred revenue until the material is processed.
CAPITAL RESOURCES AND LIQUIDITY
The Company's working capital at September 30,1999 was $11,635,665 of
which $469,407 consisted of cash and cash equivalents. This compares to
September 30, 1998, working capital of $20,298,166, of which $6,282,275
consisted of cash and cash equivalents. Income from operations after adjustments
for expenses not affecting cash (depreciation depletion, amortization of
contract purchase costs, and other) used $580,686 of cash compared to providing
$3,522,003 in 1998. Net cash used by operations increased from $5,544,038 in
1998 to $9,970,712 in 1999. The Company also continued to utilize cash to
increase its inventory levels. This inventory increase is primarily due to
production from the Company's conventional mill run.
Expenditures for property, plant and equipment totaled $2,057,178
compared to $3,812,556 during 1998. The majority of these expenditures represent
improvements and circuit modifications at the Mill to allow for more efficient
ore and alternate feed processing. Investments in the Gurvan-Saihan Joint
Venture totaled $983,367.
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The Company is projecting only minor expenditures during fiscal year
2000 for property, plant and equipment, and expenditures on the Mongolia mineral
properties are projected to be only $327,000.
During March 1999, in order to provide the Company with more short-term
cash flexibility, a $10,000,000 working capital loan agreement was established
with Norwest Bank. The one-year facility provides for advances based on
applicable receivable levels and U3O8 inventories. This facility has been
reduced to $9,000,000 in order to secure a letter of credit. As of September 30,
1999, $950,000 was outstanding under this new facility.
ENVIRONMENTAL RESPONSIBILITY
Each year, the Company reviews the anticipated costs of decommissioning
and reclaiming its mill and mine sites as part of its environmental planning
process. These estimated costs are also formally reviewed by the Company when it
submits license renewal applications to regulatory authorities. Based on this
review, it was determined that the Company's estimated reclamation obligation of
$13,265,700 is currently sufficient to cover these projected future costs.
The Company has also posted bonds securing these liabilities and has
deposited marketable securities on account of these obligations. The amount of
these restricted marketable securities collateralizing the Company's reclamation
obligation was $8,344,541 at September 30, 1999.
2000 FISCAL YEAR OUTLOOK
Certain of the Company's operations are dependent upon uranium and
vanadium prices. Due to the low spot price for vanadium and the continued
depressed market for uranium, the Company elected to suspend all U.S. mining
activities and to completely write-off the carrying value of its U.S. mineral
properties in 1999. The Company also does not anticipate that these commodity
prices will recover to levels that would warrant reactivation of these mines for
several years.
The Company has therefore decided to focus its resources and attention
in fiscal 2000 solely on the development of its alternate feed, or
uranium-bearing waste recycling business. Although the Company is pursuing
several alternate feed projects, it currently only has firm contracts for
approximately four months of processing during fiscal year 2000. The Company
remains optimistic that it will secure additional alternate feed contracts;
however, unless a significant increase is obtained, the Mill will not be
reactivated and the Company will probably not be profitable for the year.
In order to reduce costs, the Company began consolidating certain of
its mining locations during the fourth quarter of 1999. The Company will be
making additional cost reductions at all levels, including reducing its
workforce in both its operating and administrative areas.
RISKS AND UNCERTAINTIES
YEAR 2000
This risk involves the potential for the Company's operations to be
disrupted by the failure of computer systems, which were not designed to
function using dates for the new century. The Company has completed initial
reviews to assess the risks of Year 2000 compliance and has developed and
implemented plans for making necessary program conversions and software
upgrades.
These steps will be continued during the last three months of calendar
year 1999, in order to finalize adjustment plans, implement required changes,
and complete necessary compliance testing. Expenses related to Year 2000
compliance are not expected to be material to the Company's financial results or
condition. Note that it is not possible to be certain that all aspects of the
Year 2000 issue affecting the Company, including those related to the efforts of
customers, suppliers, or other third parties, will be fully resolved.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
The Company wishes to caution readers that disclosures made in the
foregoing Management's Discussion and Analysis and elsewhere in this annual
report 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
of the 2000 outlook include, but are not limited to, volatility and sensitivity
to market prices for uranium and vanadium, competition, environmental
regulations, 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 limited number of customers, replacement of reserves and
production, 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.
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MANAGEMENT'S REPORT TO THE SHAREHOLDERS
The accompanying consolidated financial statements have been prepared by
Management in accordance with generally accepted accounting principles in
Canada.
Management is responsible for ensuring that these statements, which include
amounts based upon estimates and judgement, are consistent with other
information and operating data contained in the annual report and reflect the
corporation's business transactions and financial position.
Management maintains accounting and internal control systems designed to
safeguard assets and to properly record and execute transactions. The accounting
and internal systems are utilized to provide reasonable assurance of compliance
with Company policies and procedures and the safeguarding of assets. Management
has also adhered to policies regarding compliance with laws and governmental
regulations. Judgements are required to assess and balance the relative costs
and expected benefits of these controls.
The Company's independent auditors, PricewaterhouseCoopers LLP, whose report on
their examination follows, have audited the consolidated financial statements in
accordance with Canadian generally accepted auditing standards.
The Board of Directors pursues its responsibility for these financial statements
through its Audit Committee, which meets periodically with management and the
independent auditors, to assure that each is carrying out its responsibilities.
The independent auditors meet with the Audit Committee with and without
management representatives present to discuss the scope and results of their
audit, their comments on the adequacy of accounting controls, and the quality of
financial reporting.
/s/ Earl E. Hoellen /s/ Rick L. Townley
- ----------------------- -----------------------
Earl E. Hoellen Rick L. Townley
President and Vice President and
Chief Executive Officer Chief Financial Officer
November 25, 1999
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AUDITORS' REPORT TO THE SHAREHOLDERS
We have audited the consolidated balance sheets of International Uranium
Corporation as at September 30, 1999 and 1998 and the consolidated statements of
operations and (deficit) retained earnings, and cash flow for the years then
ended. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with Canadian generally accepted auditing
standards. Those standards require that we plan and perform an audit to obtain
reasonable assurance whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
In our opinion, these consolidated financial statements present fairly, in all
material respects, the financial position of the Company as at September 30,
1999 and 1998, and the results of its operations and the changes in its cash
flow for the years then ended in accordance with generally accepted accounting
principles in Canada.
/s/ PricewaterhouseCoopers LLP
- ------------------------------
PricewaterhouseCoopers LLP
Chartered Accountants
Vancouver, Canada
November 25, 1999
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INTERNATIONAL URANIUM CORPORATION
CONSOLIDATED BALANCE SHEETS
(United States Dollars)
<TABLE>
<CAPTION>
At September 30,
1999 1998
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 469,407 $ 6,282,275
Marketable securities -- 11,731
Trade and other receivables 2,226,303 2,979,600
Inventories (Note 3) 11,930,637 12,481,713
Favorable uranium sales contracts (Note 4) -- 729,730
Prepaid expenses and other 191,425 188,532
------------ ------------
14,817,772 22,673,581
Properties, plant and equipment, net (Note 5) 6,790,627 13,516,937
Mongolia mineral properties (Note 6) 10,484,299 9,500,932
Notes receivable 202,016 203,538
Restricted cash and marketable securities (Note 7) 9,344,541 8,300,375
Other asset (Note 8) 4,248,875 --
Goodwill and other, net 3,679 575,351
------------ ------------
$ 45,891,809 $ 54,770,714
============ ============
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities $ 2,132,614 $ 1,761,841
Notes payable (Note 9) 1,049,493 37,963
Deferred revenue -- 575,611
------------ ------------
3,182,107 2,375,415
Notes payable, net of current portion 22,811 54,172
Reclamation obligations (Note 10) 13,265,700 13,265,700
Deferred revenue 3,123,441 --
Deferred credit (Note 8) 4,320,000 --
------------ ------------
23,914,059 15,695,287
------------ ------------
SHAREHOLDERS' EQUITY
Share capital (65,525,066 shares
issued and outstanding) (Note 11) 37,439,402 37,439,402
(Deficit) retained earnings (15,461,652) 1,636,025
------------ ------------
21,977,750 39,075,427
------------ ------------
$ 45,891,809 $ 54,770,714
============ ============
</TABLE>
On behalf of the Board
/s/ Earl E. Hoellen /s/ Lukas H. Lundin
- ------------------------- -------------------------
Earl E. Hoellen, Director Lukas H. Lundin, Director
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INTERNATIONAL URANIUM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND (DEFICIT) RETAINED EARNINGS
(United States Dollars)
<TABLE>
<CAPTION>
Years Ended September 30,
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS
Revenue
Uranium sales $ 9,758,317 $ 19,890,300
Process milling 4,288,515 13,050,576
------------ ------------
Total revenue 14,046,832 32,940,876
------------ ------------
Costs and expenses
Uranium cost of sales 8,387,867 17,829,592
Process milling expenditures 3,213,789 10,066,538
Selling, general and administrative 4,445,190 3,580,149
Write-down of inventories (Note 13) 7,709,170 --
Depreciation 664,633 734,267
------------ ------------
24,420,649 32,210,546
------------ ------------
(Loss) income before the following (10,373,817) 730,330
Write-off of mineral properties (Note 13) (7,039,958) --
Write-off of goodwill (Note 13) (541,641) --
Net interest and other income 857,739 1,128,562
------------ ------------
Net (Loss) income before taxes (17,097,677) 1,858,892
Provision for income taxes -- 241,561
------------ ------------
Net (Loss) income for the year $(17,097,677) $ 1,617,331
============ ============
Net (Loss) income per common share $ (0.26) $ 0.02
============ ============
(DEFICIT) RETAINED EARNINGS
Retained earnings, beginning of year $ 1,636,025 $ 18,694
Net (Loss) income (17,097,677) 1,617,331
------------ ------------
(Deficit) retained earnings, end of year $(15,461,652) $ 1,636,025
============ ============
</TABLE>
11
<PAGE> 13
INTERNATIONAL URANIUM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
(United States Dollars)
<TABLE>
<CAPTION>
Years Ended September 30,
1999 1998
------------ ------------
<S> <C> <C>
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net (Loss) income for the year $(17,097,677) $ 1,617,331
Items not affecting cash
Depreciation and amortization 664,633 734,267
Gain on sale of equipment (168,141) (99,865)
Amortization of uranium sales contract purchase cost 729,730 1,270,270
Write-down of inventories 7,709,170 --
Write-off of mineral properties 7,039,958 --
Write-off of goodwill 541,641 --
------------ ------------
(580,686) 3,522,003
Changes in non-cash working capital items
Decrease in marketable securities 11,731 28,247
Decrease (increase) in trade and other receivables 753,297 (2,916,402)
Increase in inventories (10,490,259) (2,019,516)
(Increase) decrease in other current assets (35,568) 242,053
Decrease in liability for inventory purchases -- (5,050,000)
Increase in other accounts payable and accrued liabilities 370,773 799,976
Decrease in due to related parties -- (150,399)
------------ ------------
NET CASH USED IN OPERATIONS (9,970,712) (5,544,038)
------------ ------------
INVESTING ACTIVITIES
Properties, plant and equipment (2,057,178) (3,812,556)
Mongolia mineral properties (912,990) (3,209,363)
Proceeds from sale of surplus equipment 322,660 102,310
Collection of notes receivable 1,522 4,794,117
Increase in restricted marketable securities (1,044,166) (355,020)
------------ ------------
NET CASH USED IN INVESTMENT ACTIVITIES (3,690,152) (2,480,512)
------------ ------------
FINANCING ACTIVITIES
Stock purchased for retirement -- (74,595)
Increase in notes payable 980,166 62,639
Increase in deferred credit 4,320,000 --
Increase in deferred revenue 2,547,830 365,426
------------ ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 7,847,996 353,470
------------ ------------
Decrease in cash and cash equivalents (5,812,868) (7,671,080)
Cash and cash equivalents, beginning of year 6,282,275 13,953,355
------------ ------------
CASH AND CASH EQUIVALENTS, END OF YEAR $ 469,407 $ 6,282,275
============ ============
SUPPLEMENTARY CASH FLOW INFORMATION
Cash interest paid $ 113,523 $ 29,515
Cash interest received $ 786,926 $ 1,276,122
Non-cash investing and financing activities
Transfer of inventory to other asset $ 4,248,875 --
</TABLE>
12
<PAGE> 14
INTERNATIONAL URANIUM CORPORATION
Notes to the Consolidated Financial Statements
September 30, 1999 and 1998
(United States Dollars)
1. ORGANIZATION AND NATURE OF OPERATIONS
International Uranium Corporation and its subsidiaries (the "Company") is a
company engaged in the exploration for and the production of uranium
concentrates and the selling and trading of these concentrates in the
international nuclear fuel market. In addition, the Company also produces and
sells vanadium, as well as other minerals that can be produced as a co-product
with uranium.
The Company owns the 2,000-ton per day White Mesa Mill (the "Mill") near
Blanding, Utah. The Mill is used to process the Company's mined ore along with
ore purchased or toll milled from other independent mines. The Mill is also used
to process alternate feeds, which generally are ores or residues from other
processing facilities that contain uranium in quantities or forms that are
either uneconomic to recover or cannot be recovered at these other facilities,
but can be recovered at the Mill.
2. SIGNIFICANT ACCOUNTING POLICIES
These consolidated financial statements have been prepared in accordance with
accounting principles generally accepted in Canada.
a) Use of estimates
The preparation of consolidated financial statements in conformity with
generally accepted accounting principles requires the Company's management to
make estimates and assumptions that affect the amounts reported in these
financial statements and notes thereto. Actual results could differ from those
estimated.
b) Basis of consolidation
The consolidated financial statements include the accounts of the Company and
its wholly-owned subsidiaries, International Uranium Holdings Corporation,
International Uranium Alberta Corporation, International Uranium (Bermuda) Ltd.,
International Uranium Company (Mongolia) Ltd., and International Uranium (USA)
Corporation.
c) Cash and cash equivalents
Cash and cash equivalents consist of cash on deposit and highly liquid
short-term interest bearing securities.
d) Marketable securities and restricted short-term investments
Marketable securities and restricted short-term investments are valued at
the lower of cost or market value.
e) Inventories
Ore stockpiles, in-process inventories, uranium and vanadium concentrates are
valued at the lower of cost or net realizable value. Consumable supplies and
spares are valued at their weighted average cost.
f) Properties, plant and equipment
Mineral properties and plant and equipment are recorded at cost or net
realizable value. Mineral properties are depleted by the units-of-production
method based on ore reserves. Plant and equipment are depreciated on a
straight-line basis over their estimated useful lives from three to fifteen
years.
13
<PAGE> 15
g) Exploration properties
The Company defers the property acquisition costs and ongoing exploration
expenditures on properties still in the exploration stage and carries these as
assets until the results of the exploration projects are known. If a project is
successful, the cost of the property and the related exploration and development
expenditures will be amortized over the life of the property utilizing the
units-of-production method. If a project is unsuccessful, the mining property
and the related exploration expenditure are written off.
h) Environmental protection and reclamation costs
The estimated costs for decommissioning and reclaiming producing mineral
properties, plant and equipment acquired by purchase have been fully accrued on
an undiscounted basis.
Estimated costs of decommissioning and reclamation associated with newly
acquired or developed mineral properties, plant and equipment, as well as
revised regulatory requirements are accrued through periodic charges to
earnings, on the units-of-production basis in the case of mine costs or on the
straight line basis in the case of mill costs. Actual costs of decommissioning
and reclamation incurred at the time of closure are deducted against this
accrual.
Environmental costs not associated with the decommissioning or reclamation of
producing mineral properties, plant and equipment are capitalized as property,
plant and equipment costs where they result in the betterment of an asset, or
expensed as incurred in all other circumstances.
i) Foreign currency translation
These consolidated financial statements are denominated in United States
dollars, the Company's functional currency. Substantially all of the Company's
assets and operations are located in the United States, with the exception of
the Gurvan-Saihan Joint Venture (Note 6). The majority of its costs are
denominated in United States dollars and all of its products for sale are priced
in United States dollars.
Amounts denominated in foreign currencies are translated into United States
dollars as follows:
a) Monetary assets and liabilities at the rates of exchange in
effect at balance sheet dates;
b) Non-monetary assets at historical rates;
c) Revenue and expense items at the average rates for the period.
The net effect of the foreign currency translation is included in the
statement of earnings.
j) Net earnings per share
Net earnings per common share is determined using the weighted average number of
shares outstanding during the year, which for the year ending September 30, 1999
was 65,525,066 and for the period ending September 30, 1998 was 65,698,048
shares.
k) Asset Impairment
The Company reviews and evaluates its long-lived assets for impairment when
events or changes in circumstances indicate that the related carrying amounts
may not be recoverable. An impairment loss is measured as the amount by which
asset carrying value exceeds fair value. Fair value is generally determined
using estimated future cash flow analysis. An impairment is considered to exist
if total estimated future cash flows on an undiscounted basis are less than the
carrying amount of the asset. An impairment loss is measured and recorded based
on undiscounted estimated future cash flows. Future cash flows include estimates
of recoverable pounds of uranium and vanadium, uranium and vanadium prices
(considering current and historical prices, price trends and related factors)
and
14
<PAGE> 16
production, capital and reclamation costs. Assumptions underlying future cash
flow estimates are subject to risks and uncertainties. Any differences between
significant assumptions and actual market conditions and/or the Company's
performance could have a material effect on the Company's financial position and
results of operations.
l) Revenue recognition
In accordance with normal industry practices, the Company contracts for future
delivery of uranium produced. Sales revenue is recorded in the period that title
passes to the customer along with the risks and rewards of ownership.
Process milling fees are recognized as the applicable material is processed, in
accordance with the specifics of the applicable processing agreement.
Deferred revenues represent processing proceeds received in advance of the
required processing activity.
m) Reclassifications
Certain amounts in prior years have been reclassified to conform to the
1999 presentation.
3. INVENTORIES
<TABLE>
<CAPTION>
September 30, 1999 September 30, 1998
------------------ ------------------
<S> <C> <C>
Vanadium Concentrates $ 1,257,604 $ --
Uranium Concentrates 8,583,323 7,838,433
Ore Stockpiles 144,112 3,117,441
In Process 569,499 79,600
Parts and Supplies 1,376,099 1,446,239
---------------- ----------------
$ 11,930,637 $ 12,481,713
================ ================
</TABLE>
4. FAVORABLE URANIUM SALES CONTRACTS
In May 1997, the Company completed the acquisition of substantially all of the
uranium producing assets and assumed certain obligations of Energy Fuels, Ltd.,
Energy Fuels Exploration Company and Energy Fuels Nuclear, Inc. (collectively
"Energy Fuels"). As part of the Energy Fuels assets, the Company acquired
uranium supply contracts with certain utilities. At the time of the Energy Fuels
purchase, the value of these contracts was determined to be $2,000,000 based on
the excess of the sales price over the market value of the uranium to be
delivered. Of this value, $729,730 related to deliveries made in the first
quarter of the year ending September 30, 1999.
5. PROPERTIES, PLANT AND EQUIPMENT
<TABLE>
<CAPTION>
Accumulated
Depreciation,
Depletion,
Amortization & Sept. 30, 1999 Sept. 30, 1998
Cost Write-offs Net Net
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Mill Buildings & Equipment $ 6,438,203 $ 1,494,998 $ 4,943,205 $ 4,378,149
Other Machinery & Equipment 2,645,798 798,376 1,847,422 2,384,461
Mineral Properties 7,616,865 7,616,865 -- 6,754,327
-------------- -------------- -------------- --------------
$ 16,700,866 $ 9,910,239 $ 6,790,627 $ 13,516,937
============== ============== ============== ==============
</TABLE>
15
<PAGE> 17
6. MONGOLIA MINERAL PROPERTIES
Mongolia mineral properties are made up of the Company's 70% interest in the
Gurvan-Saihan Joint Venture (the "Venture") which holds eight uranium
exploration areas covering 3.2 million acres in central eastern Mongolia. The
other parties of the Venture are the Mongolian government as to 15% and
Geologorazvedka, a Russian geological concern, as to 15%. A royalty in the
amount of 4% is payable to the Mongolian government. The Company has
proportionately consolidated its 70% interest in the Venture, which is
substantially represented by Mongolia mineral properties. To date the Company
has funded all expenditures and expects to do so for the foreseeable future.
7. RESTRICTED CASH AND MARKETABLE SECURITIES
Amounts represent cash and marketable securities the Company has placed on
deposit to secure its reclamation bonds and certain other obligations (Notes 8 &
10).
8. OTHER ASSET
On September 13, 1999 the Company entered into a uranium concentrates sale and
put option agreement with a third party. The Company transferred a certain
quantity of uranium under this agreement giving the third party the option to
put up to an equivalent quantity to the Company at a fixed price within the
period beginning October 1, 2001 and ending March 1, 2003. The transaction was
accounted for as a deferred credit and the cost of the inventory was
reclassified as an other asset. A portion of the transaction is secured by an
irrevocable letter of credit (Note 7).
9. NOTES PAYABLE
Notes payable consists primarily of $950,000 due under a $10 million working
capital loan agreement with Norwest Bank Colorado, NA. The note matures on March
31, 2000 and all amounts outstanding under the agreement are secured by accounts
receivable and uranium inventory.
10. PROVISION FOR RECLAMATION
As part of the acquisition of the Energy Fuels assets, the Company assumed
responsibility for the environmental and reclamation obligations of Energy Fuels
relating to all existing mines and the Mill, as well as for all reclamation and
environmental obligations associated with mined out, inactive, reclaimed or
partially reclaimed mines and properties, that were so acquired.
The Company has estimated the total amount of the reclamation liability at
$13,265,700. The Company has posted bonds in favor of the United States Nuclear
Regulatory Commission and the applicable state regulatory agencies securing
these liabilities and has deposited marketable securities on account of the
obligation (Note 7).
Elements of uncertainty in estimating reclamation and decommissioning costs
include potential changes in regulatory requirements, decommissioning and
reclamation alternatives. Actual costs will differ from those estimated and such
differences may be material.
11. SHARE CAPITAL
a) Authorized - unlimited number of common shares.
b) Issued and outstanding
<TABLE>
<CAPTION>
September 30, 1999 September 30, 1998
------------------ ------------------
<S> <C> <C>
Number Issued 65,525,066 65,525,066
Amount $ 37,439,402 $ 37,439,402
================== ==================
</TABLE>
c) Stock options
16
<PAGE> 18
The Company has adopted an Employee Stock Option Plan under which the Board of
Directors may from time to time grant to directors, officers, eligible employees
of, or consultants to, the Company or its subsidiaries, or to employees of
management companies providing services to the Company, options to acquire
common shares in such numbers for such terms and at such exercise prices as may
be determined by the Board. The purpose of the Stock Option Plan is to advance
the interests of the Company by providing eligible personnel with a financial
incentive for the continued improvement of the Company's performance and
encouragement to stay with the Company. All options granted to date expire three
years from the date of the grant of the option.
Options were outstanding as follows:
<TABLE>
<CAPTION>
Expiry Date September 30, 1999 September 30, 1998
------------------ ------------------ ------------------
<S> <C> <C> <C>
Option Price per Share
Cdn $1.25 5/00 - 6/00 1,875,000 2,000,000
Cdn $0.75* 5/00 - 3/01 739,000 814,000
Cdn $0.75 1/02 775,000 --
------------------ ------------------
3,389,000 2,814,000
================== ==================
</TABLE>
*Represents options granted to employees other than executive officers and
directors repriced from Cdn $1.25 to Cdn $.75 on June 17, 1998.
12. INCOME TAXES
Non-capital loss carry forwards for Canadian tax purposes of approximately $1.1
million begin to expire in 2004. For U.S. income tax purposes, loss carry
forwards of approximately $3.5 million begin to expire in 2015 unless utilized.
The benefits of these amounts have not been reflected in these consolidated
financial statements.
13. WRITE-DOWN OF ASSETS
As a result of a prolonged period of low uranium and vanadium prices, the
Company adjusted the carrying value of certain assets to their estimated fair
values resulting in an impairment loss of $15,290,769. The write-down included
$6,193,916 for ore stockpiles and in process inventory, $1,515,254 for uranium
and vanadium concentrates, $7,039,958 for mineral properties and $541,641 for
goodwill.
14. SEGMENTED INFORMATION
a) Geographic segments
<TABLE>
<CAPTION>
September 30, 1999 September 30, 1998
------------------ ------------------
<S> <C> <C>
Revenue
Canada $ -- $ --
United States 14,046,832 32,940,876
Mongolia -- --
------------------ ------------------
$ 14,046,832 $ 32,940,876
================== ==================
Net (Loss) Income
Canada $ (463,753) $ (608,062)
United States (16,580,589) 2,235,975
Mongolia (53,335) (10,582)
------------------ ------------------
$ (17,097,677) $ 1,617,331
================== ==================
Property, Plant and Equipment, net
Canada $ -- $ --
United States 6,357,892 12,966,199
Mongolia 432,735 550,738
------------------ ------------------
$ 6,790,627 $ 13,516,937
================== ==================
</TABLE>
17
<PAGE> 19
b) Major customers
The Company's business is such that, at any given time, it sells its uranium
concentrates to and enters into process milling arrangements with a relatively
small number of customers. The customers with whom it does business vary
substantially from year to year. During the year ended September 30, 1999, a
process milling customer and a major utility accounted for 27% and 33% of total
revenues, respectively. Accounts receivable from any individual customer will
exceed 10% of total accounts receivable on a regular basis.
15. RELATED PARTY TRANSACTIONS
a) During the year ended September 30, 1999, the Company incurred legal
fees of $12,524 with a law firm of which a partner is a director of the Company.
Amounts due to this firm were $1,134 as of September 30, 1999. Legal fees
incurred with this law firm were $50,197 for the period ended September 30,
1998.
b) During the year ended September 30, 1999, the Company incurred
management and administrative service fees of $94,108 with a company owned by
the Chairman of the Company which provides office premises, secretarial and
other services in Vancouver. Management and administration fees of $99,383 were
paid to this same company during the period ended September 30, 1998.
c) During the period ended September 30, 1997, the Company loaned $200,000
to an officer of the Company in order to facilitate relocation to the Company
headquarters. This loan is non-interest bearing and is payable on the earlier of
termination of employment or June 30, 2000. The loan is secured by the officer's
personal residence.
16. COMMITMENTS
Certain Swiss utilities hold a royalty (the "Swiss Royalty") of 4.5% of all
uranium and 2.5% of vanadium and all other minerals produced during the period
from January 1, 1998 through December 31, 2000 from certain of the United States
properties. Advance royalty payments in the amount of $250,000 are made each
year during this period. The royalty increases to 9% of all uranium and 5% of
vanadium on January 1, 2001; however the advance payments terminate. The Swiss
Royalty does not apply to the Mongolia mineral properties, nor to any tolled or
purchased ore from third parties that is processed in the Mill, nor to any
properties acquired after the date that the Swiss royalty was granted.
17. FINANCIAL INSTRUMENTS
As at September 30, 1999 and 1998, the fair value of the Company's financial
instruments approximates their carrying values because of the short-term nature
of these instruments and, where applicable, because interest rates approximate
market rates.
18. UNCERTAINTY DUE TO THE YEAR 2000 ISSUE
The Year 2000 Issue arises because many computerized systems use two digits
rather than four to identify a year. Date-sensitive systems may recognize the
Year 2000 as 1900 or some other date, resulting in errors when information using
Year 2000 dates is processed. In addition, similar problems may arise in some
systems, which use certain dates in 1999 to represent something other than a
date. The effects of the Year 2000 Issue may be experienced before, on, or after
January 1, 2000, and if not addressed, the impact on operations and financial
reporting may range from minor errors to significant systems failure, which
could affect an entity's ability to conduct normal business operations. It is
not possible to be certain that all aspects of the Year 2000 Issue affecting the
entity, including those related to the efforts of customers, suppliers, or other
third parties, will be fully resolved.
18
<PAGE> 20
INTERNATIONAL URANIUM CORPORATION CORPORATE DIRECTORY
EXECUTIVE OFFICERS
Earl E. Hoellen
President and
Chief Executive Officer
Ron F. Hochstein
Vice President and
Chief Operating Officer
David C. Frydenlund
Vice President,
General Counsel and
Corporate Secretary
Rick L. Townley
Vice President and
Chief Financial Officer
BOARD OF DIRECTORS
Lukas H. Lundin
Chairman
Compensation Committee
Vancouver, B.C., Canada
John H. Craig
Audit Committee
Compensation Committee
Corporate Governance Committee
Environment, Health, and Safety
Committee
Toronto, Ontario, Canada
David C. Frydenlund
Environment, Health, and Safety
Committee
Denver, Colorado, USA
Christopher J.F. Harrop
Audit Committee
Corporate Governance Committee
Environment, Health, and Safety
Committee
Toronto, Ontario, Canada
Earl E. Hoellen
Denver, Colorado, USA
Aldolf H. Lundin
Geneva, Switzerland
19
<PAGE> 21
William A. Rand
Audit Committee
Compensation Committee
Corporate Governance Committee
Vancouver, B.C., Canada
EXECUTIVE OFFICE
International Uranium (USA) Corp.
Independence Plaza, Suite 950
1050 Seventeenth Street
Denver, Colorado, USA 80265
Telephone: 303.628.7798
Fax: 303.389.4125
CHAIRMAN'S OFFICE
International Uranium Corp.
885 West Georgia St., Suite 1320
Vancouver, British Columbia
Canada V6C 3E8
DISTRICT MINING OFFICES
International Uranium (USA) Corp.
H.C. 64, Box 153
2555 North Highway 89A
Fredonia, Arizona, USA 86022
International Uranium Company (Mongolia) Ltd.
Central post, Box 880
Ulaanbaatar-13, Mongolia
WHITE MESA MILL OFFICE
International Uranium (USA) Corp.
6425 S. Highway 191
P.O. Box 809
Blanding, Utah, USA 84511
REGISTERED AND
RECORDS OFFICE
Cassels Brock & Blackwell
Scotia Plaza, Suite 2100
40 King Street West
Toronto, Ontario, Canada M5H 3C2
LEGAL COUNSEL
Cassels Brock & Blackwell
Scotia Plaza, Suite 2100
40 King Street West
Toronto, Ontario, Canada M5H 3C2
Shaw Pittman Potts & Trowbridge 2300 N Street N.W.
Washington, DC USA 20037
Parsons Behle & Latimer
One Utah Center, Suite 1800
201 South Main Street
Salt Lake City, Utah USA 84145
20
<PAGE> 22
INVESTOR RELATIONS
International Uranium Corp.
885 West Georgia St., Suite 1320
Vancouver, British Columbia, Canada V6C 3E8
Telephone: 604.689.7842
Fax: 604.689.4250
BANKERS
Canadian Imperial Bank of Commerce
Vancouver, B.C., Canada
Norwest Bank
Denver, Colorado, USA
AUDITORS
PricewaterhouseCoopers LLP
Vancouver, B.C., Canada
TRANSFER AGENT
Montreal Trust Company of Canada
Toronto, Ontario, Canada
SHARE CAPITAL
Authorized: unlimited
common shares
Issued and Outstanding: 65,525,066 shares
STOCK EXCHANGE LISTING
The Toronto Stock Exchange Trading Symbol: IUC
The Annual General Meeting will be held at the Corporation's Vancouver office,
Suite 1320, 885 West Georgia Street, Vancouver, B.C. Canada on Friday March 17,
2000, at the hour of 10:00 a.m. (Vancouver time).
21
