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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 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
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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: February 24, 2000 By: /s/ Earl E. Hoellen
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Earl E. Hoellen, President
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EXHIBIT INDEX
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EXHIBIT
NUMBER DESCRIPTION
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<S> <C>
1 1st Quarter 2000 Report
2 Financial Statements
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REPORT TO SHAREHOLDERS
1ST QUARTER 2000
(U.S. DOLLARS)
International Uranium Corporation (the "Company") had a net loss of $237,485 for
the first three months of fiscal year 2000, or less than $0.01 per share. This
compares with a net income of $739,411, or approximately $0.01 per share, for
the first quarter of last year. However, net working capital increased during
the quarter by $2,155,199 and totaled $13,790,864, or $0.21 per share. Details
on the Company's financial performance are discussed below.
Operational highlights for the first quarter included the completion of the
Company's first conventional ore processing run at the White Mesa Mill. During
this mill run, which commenced last June, the Company processed approximately
87,000 tons of uranium/vanadium bearing ore and produced approximately 490,000
pounds of uranium concentrates and 1,996,000 pounds of vanadium concentrates. Of
these quantities, approximately 158,000 pounds of uranium concentrates and
1,100,000 pounds of vanadium concentrates were produced during the first quarter
of fiscal 2000.
The Company continued to receive various alternate feed materials from different
customers during the quarter, including uranium-bearing soils excavated from the
Ashland 1 former defense site, near Buffalo, New York. As of the end of the
quarter, the Company had received over 73,000 tons of Ashland 1 material, which
will ultimately be recycled through the Mill for the recovery of uranium. The
Ashland 1 project should generate over 100,000 tons of material for recycle by
the time deliveries are completed later this year. The Company is paid a
recycling fee at the time these materials are delivered to the Mill.
The Company also continued to receive uranium-bearing waste materials delivered
under contract with private sector nuclear fuel cycle companies. These materials
will also be recycled for uranium recovery after sufficient stockpiles are
accumulated at the Mill. To date, however, these contracts have not provided the
Company with the necessary backlog of business to allow the Mill to maintain
processing operations on a continuous and economic basis.
With the completion of the conventional ore run, the White Mesa Mill's
processing operations were placed in a standby mode. Mill personnel, in addition
to receiving alternate feed materials, have been doing routine maintenance and
preparing the Mill for the next alternate feed run. In addition, Mill personnel
have been performing considerable analytical testing and development work in
support of the Company's alternate feed program.
As a result of the Company's conventional ore processing run and previous
alternate feed processing runs, the Company has increased its inventory of both
uranium and vanadium concentrates. Accordingly, the Company continues to remain
active in and monitor both of these markets in order to maximize the value of
these Company assets. Unfortunately, both of these markets continued their
depressed states during the quarter.
Uranium spot market prices decreased slightly, beginning the quarter at $9.80
per pound U3O8 and ending the period at $9.60 per pound. Market demand during
the period was a moderate three million pounds. Uranium spot market prices are
not expected to improve during the first
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half of calendar 2000 because of continued weak demand coupled with aggressive
selling on the part of some major suppliers. An increase in requirements buying
by utilities is expected by some analysts toward the end of calendar 2000, which
could help to improve the currently difficult market conditions. Thus, these
industry experts are suggesting that calendar 2000 could parallel the price
trend observed during 1998.
While vanadium prices declined during the period, recent indicators are showing
signs of improvement for prompt deliveries. Prices began the quarter at near
$1.80 per pound V2O5, but fell to $1.30 per pound by the end of the quarter.
Recently, however, some market analysts have suggested that, due to operational
delays in some production projects, a tightening of supply may assist an upward
movement in vanadium prices during the first half of calendar 2000. The Company
will seek to take advantage of any run up in market prices that might occur.
As previously announced, the Company has curtailed all of its uranium mining and
exploration activities in favor of the continued development of its alternate
feed/uranium-bearing waste recycling business. However, if the Company cannot
soon demonstrate the viability of this business, the Company may elect to
abandon these efforts and pursue other opportunities. To this end, the Company
has begun to evaluate other business ventures unrelated to the uranium industry
that might provide the Company with opportunities to enhance shareholder value.
FINANCIAL REVIEW
Total revenues from the sale of uranium for the three-month period ending
December 31, 1999 were $3,267,600 with a corresponding cost of material of
$2,765,000 resulting in a gross profit of $502,600. This compares to total
uranium sales in the first quarter of last year of $7,520,450 at a cost of
$6,415,348 resulting in a gross profit of $1,105,102.
During the quarter, revenue from the process milling of alternate feed was only
$358,051 compared to $2,724,185 for the corresponding quarter last year. During
this quarter, the alternate feed processing activities consisted only of the
receipt, sampling, and analysis of the Ashland 1 material and no actual
processing was conducted. Approximately 33,000 tons of Ashland 1 material was
received during the quarter bringing the total received to over 71,000 tons. 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 first quarter were $964,877
which was almost identical to the same quarter last year. Depreciation expense
this quarter was $165,307, a decrease of $58,474 from last year's amount of
$223,781. Net interest and other income also decreased slightly from $234,993
during the first quarter of fiscal year 1999 to $194,269 this quarter.
Due to significant lower sales of U3O8 and decreases in revenue from the
alternate feed, or uranium-bearing waste recycling business, the Company
recorded a small loss for the quarter of $237,485 compared to an after tax
profit of $739,411 during the same period a year ago.
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During the first quarter, the Company provided $1,888,761 of cash from
operations compared to $1,854,052 used in operations during the same period last
year. This was due primarily to increases in deferred revenue (receipt of
Ashland 1 processing fees) partially offset by changes in inventory levels and
changes in trade receivables for inventory sales. Investment in properties,
plant, and equipment decreased from $448,912 in the first quarter last year to
$50,479 this year. Expenditures on the Mongolian Joint Venture also decreased
correspondingly from $504,867 to $120,057.
The Company's working capital increased by $2,155,199 during the quarter and now
totals $13,790,864 of which $1,076,496 consisted of cash and cash equivalents.
This increase is primarily due to the continued receipt of Ashland 1 processing
fees.
The Company is in the process of renewing its $10,000,000 working capital loan
loan agreement with Norwest Bank Colorado, N.A. which expires in March 2000.
This facility provides for advances based upon receivable levels and U3O8
inventories. As of December 31, 1999, no advances were outstanding under this
facility.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
The Company wishes to caution readers that disclosures made in the 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.
ON BEHALF OF THE BOARD
/s/ EARL E. HOELLEN
Earl E. Hoellen
President and Chief Executive Officer
February 11, 2000
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INTERNATIONAL URANIUM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
(UNITED STATES DOLLARS) (UNAUDITED)
<TABLE>
<CAPTION>
DECEMBER 31, 1999 SEPTEMBER 30, 1999
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<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 1,076,496 $ 469,407
Trade and other receivables 1,209,760 2,226,303
Inventories 12,493,546 11,930,637
Prepaid expenses and other 127,139 191,425
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14,906,941 14,817,772
Properties, plant and equipment, net 6,443,421 6,790,627
Mongolia mineral properties 10,632,153 10,484,299
Notes receivable 200,088 202,016
Restricted cash and marketable securities 9,477,534 9,344,541
Other asset 4,248,875 4,248,875
Other, net 3,478 3,679
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$ 45,912,490 $ 45,891,809
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LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities $ 1,045,335 $ 2,132,614
Notes payable 70,742 1,049,493
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1,116,077 3,182,107
Notes payable, net of current portion 21,491 22,811
Reclamation obligations 13,265,700 13,265,700
Deferred revenue 5,448,957 3,123,441
Deferred credit 4,320,000 4,320,000
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24,172,225 23,914,059
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SHAREHOLDERS' EQUITY
Share capital 37,439,402 37,439,402
Retained earnings (15,699,137) (15,461,652)
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21,740,265 21,977,750
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$ 45,912,490 $ 45,891,809
================= =================
</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 CASH FLOW
(UNITED STATES DOLLARS) (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED DECEMBER 31
1999 1998
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<S> <C> <C>
OPERATIONS
Revenue
Uranium sales $ 3,267,600 $ 7,520,450
Process milling 358,051 2,724,185
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Total revenue 3,625,651 10,244,635
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Costs and expenses
Uranium cost of sales 2,765,000 6,415,348
Process milling expenditures 162,221 1,655,722
Selling, general and administrative 964,877 967,369
Depreciation 165,307 223,781
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4,057,405 9,262,220
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(Loss) operating income (431,754) 982,415
Net interest and other income 194,269 234,993
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(Loss) net income before taxes (237,485) 1,217,408
Provision for income taxes -- 477,997
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(LOSS) NET INCOME FOR THE PERIOD $ (237,485) $ 739,411
============== ==============
Net income per common share $ -- $ 0.01
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(DEFICIT) RETAINED EARNINGS
(Deficit) Retained earnings, beginning of period (15,461,652) 1,636,025
(Loss) net income (237,485) 739,411
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(DEFICIT) RETAINED EARNINGS, END OF PERIOD $ (15,699,137) $ 2,375,436
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</TABLE>
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INTERNATIONAL URANIUM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
(UNITED STATES DOLLARS) (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED DECEMBER 31
1999 1998
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<S> <C> <C>
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
(Loss) net income for the period $ (237,485) $ 739,411
Items not affecting cash
Depreciation and amortization 165,307 223,781
Amortization of uranium sales contract purchase cost -- 729,730
Increase in deferred income taxes -- 470,197
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(72,178) 2,163,119
Changes in non-cash working capital items
Decrease in marketable securities -- 11,731
Decrease (increase) in trade and other receivables 1,016,542 (6,166,373)
(Increase) decrease in inventories (342,341) 2,442,382
Decrease in other current assets 48,500 63,677
Decrease in other accounts payable and accrued liabilities (1,087,278) (172,089)
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NET CASH PROVIDED BY (USED IN) OPERATIONS (436,755) (1,657,553)
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INVESTING ACTIVITIES
Properties, plant and equipment (50,479) (448,912)
Mongolia mineral properties (120,057) (504,867)
Collection of notes receivable 1,928 276
(Increase) decrease in restricted marketable securities (132,993) 53,310
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NET CASH USED IN INVESTMENT ACTIVITIES (301,601) (900,193)
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FINANCING ACTIVITIES
Decrease in notes payable (980,071) (13,039)
Increase (decrease) in deferred revenue 2,325,516 (196,499)
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NET CASH USED IN FINANCING ACTIVITIES 1,345,445 (209,538)
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Increase (decrease) in cash and cash equivalents 607,089 (2,767,284)
Cash and cash equivalents, beginning of period 469,407 6,282,275
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CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,076,496 $ 3,514,991
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SUPPLEMENTARY CASH FLOW INFORMATION
Cash interest paid 38,009 3,754
Cash interest received 167,630 162,683
</TABLE>
