OREANDA-NEWS. July 05, 2012. ARMZ Uranium Holding(JSC Atomredmetzoloto, ARMZ) has published the consolidated financial statements for 2011 in accordance with the international standards, the independent auditor’s opinion prepared by KPMG and the production indicators for 2011.
 
Production results
 
Uranium production has increased by 37.07% - from 5,173.4 tons to 7,091.2 tons. The growth in production indicators is mainly related to enterprises of the Canadian company Uranium One Inc the controlling stake of which was consolidated in December 2010. JSC Khiagda also has increased the production of uranium by 97.2% - 266.4 tons compared to 135.1 tons in 2010.

The reduction in production of JSC PIMCU (2,191 tons of uranium compared to 2,920 tons in 2010) was mainly caused by reduction in the content of uranium in the recoverable ore. At present, ARMZ Uranium Holdingimplements a number of measures aimed at improvement of the plant performance indicators.
 
 
 Financial results

Revenue of ARMZ Uranium Holdinghas increased by 47.2% - up to 44.5 billion rubles compared to 30.2 billion rubles in 2010. EBITDA has increased by 6% - from 11.25 to 11.9 billion rubles. Net asset value has increased by 17.9% - up to 147.6 billion rubles compared to 125.2 billion rubles at the end of 2010. Net profit for 2011 amounted to 3.2 billion rubles.
 

High net profit of ARMZ Uranium Holding in 2010 was mainly related to re-evaluation of the share of ARMZ in Uranium One Inc. at the time of closing of the transaction for consolidation of the controlling stake of the Canadian company on December 24, 2010. Consequently, the profit was reflected in revenues in the amount of 9.8 billion rubles - the difference between the book value of investments of ARMZ in Uranium One Inc. and the market value of the stake in the Canadian company as of December 24, 2010.

Tigran Khachaturov, Acting Director General of JSC Atomredmetzoloto, noted: “Production and financial results in 2011 confirm the active growth of the scale of business of ARMZ Uranium Holding. Effective foreign assets will ensure good standing of the company in the mid-run and provide the same with necessary resources for implementation of investment programs of Russian enterprises and development of uranium mining in Russia. At the same time, ARMZ, in its attempts to increase efficiency of the company’s business, promptly adjusts the production plans subject to the needs of the Russian nuclear industry in raw materials and the situation in the world uranium market.”