Monday, January 29, 2007

UUU AGM - Jan 26, 2007

The following is a report from the UUU AGM, which was attended by a friend of the AGM Reporter. (Note: as UUU is a producer, they would be benefiting from the $72/lb price of U.)

Ian Telfer, Non Executive Chairman, handled the formal portion of the meeting. The number of Directors was fixed at 6 and Deloitte & Touche was retained as the auditors.

The podium was passed to Phillip Shirvington, President and Chief Executive Officer. Shirvington discussed the company bio and members of senior management. Gordon Keep, Robin Merrifield, Dr. Sally Eyre, Vitaly Melnikov, and Susan Speight were present at the meeting.

Kazakh is the third largest producer of uranium in the world. Kazakh host to approx. 20% of the world's recoverable uranium resources and current production represents ~10% of global production.

Kazakh production is forecast to increase to approx. 39 million lbs U3O8 by 2010. Deposits are typically large-scale, roll fronts, amenable to low cost, ISL Operations.

Production: Akdala ISL Mine commenced commercial production January 2004 and has production of 2.6 million U3O8. Akdala is the largest operating ISL mine in the world has a life of approx. 12 years and operating cost of US $11.76/lb U3O8. 2.2% royalty, depth ore zone 165 to 170 m and average grade of 0.057%.

Mines in Development:

1) South Inkai has initial production in 2008. 0.5% royalty, depth ore zone 450 to 510 m and average grade of 0.043%. NI43-101 resource base supports 1.6 million lbs U3O8.

2) Kharassan has initial production in 2008. 0.5% royalty, depth ore zone 550 to 650 m and average grade of 0.07 - 0.2%. NI43-101 resource base supports 2.0 million lbs u3O8.

Akdala and South Inkai are operated by Betpak Dala JV. Unhedged production means higher leverage to uranium price. Agreement for sales reached with 14 new customers. Customers include largest European and US Nuclear Fuel Buyers. More than half long term contracts include floor price and all long term contracts linked to published market price indicators. Approx. 30% of projected production from Betpak Dala JV is committed through 2020. Contracts represent approx. 16% of total, global, long term business transacted in sector during 2006.

Q & A: UUU shareholder: Will UUU will be listed on TSX?
Shirvington: Yes, once UUU satisfies all reporting requirements.

UUU shareholder: How about Nasdaq?
Shirvington: NO.

AGM lasted about 30 minutes and people in attendance were over 75% UUU people with a handful of retail shareholder and broker/analysts. Total attendance was about 30. I know there was at least 3 retail shareholders and David Zadak, Investment Advisor at Nesbitt Burns.

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