Fission Uranium

CANADA
FCU CN
Price (at 20:59, 09 Jan 2015 GMT)
Valuation
Outperform
C$1.01
C$
2.73
- DCF (WACC 8.0%)
Fission Uranium
Maiden resource surprises on the
upside
12-month target
C$
2.25
12-month TSR
%
+122.8
Volatility Index
Very High
GICS sector
Energy
Market cap
C$m
367
Market cap
US$m
309
30-day avg turnover
C$m
0.8
Number shares on issue
m
363.1
Event
Investment fundamentals
Impact
Year end 30 Jun
Revenue
EBITDA
Recurring profit
Reported profit
Gross cashflow
CFPS
CFPS growth
EPS rec
EPS rec growth
Total DPS
Total div yield
ROA
ROE
EV/EBITDA
Net debt/equity
P/BV
2014A 2015E 2016E 2017E
m
m
m
m
m
C$
%
C$
%
C$
%
%
%
x
%
x
0.0
-8.3
-5.5
-4.8
-7.4
-0.03
nmf
-0.02
nmf
0.00
0.0
-3.3
-2.3
-36.9
-12.2
1.4
0.0
-7.4
-5.2
-12.2
-3.9
-0.01
65.1
-0.01
36.9
0.00
0.0
-2.9
-2.0
-49.8
-16.6
1.4
0.0
-8.0
-5.6
-11.7
-3.4
-0.01
17.4
-0.01
-1.7
0.00
0.0
-2.8
-2.0
-48.0
-22.3
1.4
0.0
-8.0
-5.6
-11.6
-3.4
-0.01
2.0
-0.01
1.8
0.00
0.0
-2.6
-1.9
-48.0
-18.1
1.4
FCU CN vs TSX, & rec history
 Fission released a maiden resource on the newly named Triple R deposit, on its
Patterson Lake South project, on the SW margin of the Athabasca Basin. There
is no question in our mind this is an impressive result and should move
the stock materially higher due to its 1) high-quality resource that
demonstrates compelling economics, 2) growth potential, which remains
impressive; and 3) ultimate take-out potential.
 The total mineral inventory is 105.4 m lbs @ 1.50%, comprised of 79.6m lbs @
1.58% in the indicated category and 25.9m lbs @ 1.30% in the inferred category.
The resource has a high-grade core with an estimated TMI of 58m lbs @ 19.66%.
 We have updated our model with an enhanced grade profile in the early years of
mining, and tweaked our capital and operating costs – which together cancelled
each other out, resulting in no change to our estimated C$2.73/sh NAV@8%.
 We continue to believe the exploration potential of the PLS property remains
attractive and the likelihood that additional resources will be found is, in our
opinion, a near certainty. In addition we believe producers will take an interest in
the PLS project. At US$8.00/lb in-situ, based on the current resource we can see
Fission being taken out for as much as C$900m.
 Our Commodities team forecasts uranium to remain in oversupply until the end of
the decade, but still maintain a long-term U3O8 price of $60/lb. We recognize
certain project risks including the length of time to permit development and the
fact that there is no processing facility in the neighbourhood. We don’t consider
any of these issues to be show-stoppers.
Earnings and target price revision
Note: Recommendation timeline - if not a continuous line, then there was no
Macquarie coverage at the time or there was an embargo period.
Source: FactSet, Macquarie Research, January 2015
(all figures in CAD unless noted)
 We revised our model and forecasts for corporate spend. As a result, 2015 CFPS
changed to $(0.01) from $0.00.
 We reiterate our C$2.25 target price and Outperform rating.
Price catalyst
 12-month price target: C$2.25 based on a NAV methodology.
Analyst(s)
 Catalyst: Ongoing winter drill program results followed PEA (2Q15).
Ron Stewart
+1 416 848 3512
[email protected]
Mohamed Abo Daff
+1 416 848 3537 [email protected]
Action and recommendation
12 January 2015
Macquarie Capital Markets Canada Ltd.
 Our target is based on a 0.8x multiple to our discounted Net Asset Value of
C$2.73 derived from our mine model for PLS. We recommend buying FCU to
investors looking for best-in-class uranium development stories.
Please refer to page 8 for important disclosures and analyst certification, or on our website
www.macquarie.com/research/disclosures.
Macquarie Research
Fission Uranium
The resource
 The maiden resource is comprised of three separate zones the R00E, R780E and R780E (other) and
hence has been newly named the Triple R deposit. Resources, presented in Figure 1, were estimated
based on a 0.1% U3O8 cut-off grade. The total mineral inventory is 105.4 m lbs @ 1.50% comprised of
79.6m lbs @ 1.58% in the indicated category and 25.9m lbs @ 1.30% in the inferred category. The
resource has a high-grade core with an estimated TMI of 58m lbs @ 19.66%.
Fig 1 The Triple R deposit, maiden resource estimate
Zone
Indicated (@ 0.1% U3 O8)
ROOE
R780E (Main)
Tonnes
(000's)
High Grade
Low Grade
R780E (Other)
Total Indicated
126.0
110.0
1,898.0
157.0
2,291.0
Pounds
U3 O8 (000's)
Gold
Ounces
U3O8 (%)
Gold (g/t)
1.15%
18.21%
0.69%
0.97%
1.58%
0.15
2.77
0.39
0.67
0.53
3,194
44,148
28,864
3,356
79,562
1,000
10,000
24,000
3,000
38,000
3.57%
26.35%
1.26%
0.68%
0.33%
1.30%
1.50%
0.59
3.77
0.89
0.56
0.22
0.61
0.55
669
13,860
648
8,797
1,910
25,884
105,446
3,000
1,000
11,000
2,000
17,000
55,000
Inferred (@ 0.1% U3O8)
ROOE
R780E (Main)
8.5
23.9
23.3
R780E (Other Zones)
585.0
Low Grade Halo
260.0
Total Inferred
900.7
Total Mineral Invntory (TMI)*
3,191.7
* Total Mineral Inventory (TMI) is a non-compliant term
High Grade
Low Grade
Source: Company documents, Macquarie Research, January 2015
 We looked at the in-situ value of the rock using a spot uranium price of $35.00/lb and based on an
assumed a contract price of $60/lb. What we find is that the TMI has an in-situ value of around
$1,200/tonne on spot prices and around $2,000/tonne on our assumed contract price.
 Applying the same math to the high-grade zone, we find the rock has an in-situ value of over
$15,000/tonne using spot prices and a staggering $26,000/tonne using contact prices.
Our model
 We maintained our model estimate of 2.55m tonnes mined over a 15-year mine life, but modified our
assumed grade profile to reflect a 3.0% grade for the first ~6 years of production followed by ~8 years
at an average grade of 0.72%. Based on our mine plan a little less than 10m lbs of the total resource
have not been modelled but could, in theory allow the mine to continue for another 3 years. We have
not added any value for the by-product gold that might be recovered. The resource we used in our
model is presented in Figure 2, below.
Fig 2 Macquarie model mine resource and residual inventory
Zone
High Grade Mine Resouce (Initial 6 yrs)
Lower Grade Mine Resouce (8 yrs)
Total Mined
Residual Resouces
Tonnes
(000's)
1,090
1,460
2,550
642
U3O8 (%)
Gold (g/t)
3.03%
0.72%
1.70%
0.68%
0.75
0.46
0.59
0.43
Pounds
U3O8 (000's)
72,800
23,100
95,800
9,646
Gold
Ounces
25,500
20,900
46,400
8,600
Source: Macquarie Research, January 2015
12 January 2015
2
Macquarie Research
Fission Uranium
 Our revised model parameters are presented in Figure 3, below along with our previous model
assumptions. We increased our assumed mining cost to US$2.75/tonne from $1.25/tonne previously
and increased our sustaining capital from around $40m to $70m over the mine life.
 Our model assumes both an equity and debt financing totalling around $500m in 2018. We have
assumed a $200m equity financing and $300m in debt at a 7.5% interest rate.
 A comparison of our old and new model parameters along with the financial outcome is presented in
Figure 3.
Fig 3 Macquarie model parameters and outcome
Parameter
Assumed Price
Reserves & Production
Tonnes
Grade
Contained U3O8
Recovery
Construction Start
Productin Start
Mill Throughput
Life of Mine Uranium Production
Mine Life
Average Uranium Production
Operating Cost
Mining Cost
Strip Ratio
Total Mining Cost/ton of Ore
Processing Cost
G&A
Total Cost per Ton Processed
Capital Cost
Pre-Production Capital
Sustaining Capital
Financials
NPV @ 5%
NPV @ 8%
IRR
Units
US$/lb
Macquarie
Estimates
(Previous)
60
Macquarie
Estimates
(Current)
60
000's
% U3O8
2,550
1.8%
2,550
1.7%
000 lbs
%
Date
Date
tpd
000 lbs U3O8
years
lbs/a
101,164
95.0%
2019
2021
500
96,133
15.00
6,409
93,670
95.0%
2019
2021
500
91,891
15.00
6,126
US$/tonne
Waste:Ore
US$/tonne
US$/tonne
US$/tonne
US$/tonne
1.25
7.0
10.00
300.00
10.00
320.00
2.75
7.0
22.00
300.00
45.00
367.00
US$m
US$m
430.0
42.0
450.0
70.0
US$m
US$m
%
1,315
882
48.00%
1,335
976
58.00%
Source: Macquarie Research, January 2015
Exploration upside
 To date mineralization has been defined over a 2.25km east-west strike length in four separate zones;
the R600W, R00E, R780E and R1620E. Resources were estimated from the R00E and R780E zones
only. The deposit is described as a shallow, basement-hosted and structurally controlled deposit. The
high-grade core is centred on a NNE striking, near-vertical fault surrounded by a lower-grade halo.
Inclined drilling completed last year helped define the geometry of the mineralized system.
12 January 2015
3
Macquarie Research
Fission Uranium
 We believe the exploration potential of the PLS property remains attractive and the likelihood that
additional resources will be found is, in our opinion, a near certainty. Due to the nature of their
deposition, uranium deposits are rarely found as single discrete deposits; rather the mineralizing
systems form districts that are usually comprised of a cluster or collection of deposits. Such is the
case on the Eastern margin of the Athabasca Basin.
Fig 4 Plan view of the Triple R deposit mineralized zones
Source: Company documents, January 2015
Take-out potential, PLS trumps a weak market
 Despite the fact that investors have had little appetite for the uranium sector, we believe producers will
take an interest in Fission and its PLS project. We looked back as far as 2010 and found 14 transactions
in the uranium sector, which were completed at an average price of around $4.35/lb. We consider the
Denison acquisition of Fission Energy in early 2013 and Rio Tinto’s acquisition of Hathor in late 2011 to
be better proxies for an acquisition of Fission Uranium. These two transactions had an average value of
just over US$8.00/lb. If we apply that to Fission Uranium, based on the current resource we can imagine
a take-out price of north of US$800m. In Canadian dollars, with an exchange rate of 0.85 that would
imply a price on Fission of around over C$900m.
12 January 2015
4
Macquarie Research
Fission Uranium
Fig 5 Uranium transactions since 2010
Date
Target
5-Jan-15
Uranerx
17-Sep-13
Rockgate Capital
26-Aug-13
Alpha Minerals
12-Aug-13
Mega Uranium (Lake Maitland)
6-Jun-12
Rockgate Capital
24-May-13
Strathmore Minerals
16-Jan-13
Fission Energy
11-Dec-13
ARSA (Karoo Basin, South Africa)
26-Aug-12
Yeelirrie (BHP)
14-Feb-12
Extract Resources
25-Oct-11
Titan Uranium
19-Oct-11
Hathor Exploration
17-Dec-10
Aurora Energy (Fronteer Gold)
15-Dec-10
Mantra Resources
Average
Average of Denision and Rio Tinto Acquisitions
Acquirer
Energy Fuels
Denison Mines
Fission Uranium
Toro Uranium
Mega Uranium
Evergy Fuels
Denison Mines
Penninsula Energy
Cameco
Tarus Minerals
Energy Fuels
Rio Tinto
Paladin Energy
ARMZ
Value
Resources
(US$m)
(m lbs)
161.0
19.1
9.0
45.3
181.0
n/a
33.0
26.0
8.0
45.3
21.0
71.5
51.0
8.9
50.0
50.1
430.0
144.5
2,264.0
512.9
268.0
30.4
609.0
57.9
257.0
136.3
1,080.0
101.4
387.3
96.1
330.0
33.4
Grade
EV/ Resource
(US $/lb)
(U3O8)
0.091%
8.46
0.069%
0.19
n.a
n/a
0.037%
1.26
0.069%
0.18
0.113%
0.30
1.270%
5.78
n/a
1.00
0.131%
2.98
0.044%
4.41
0.021%
8.80
8.627%
10.51
n/a
1.89
0.042%
10.65
0.956%
4.34
4.95%
8.15
U Spot Price at
Annoucement
(US $/lb)
36.0
35.0
34.0
36.0
40.0
40.0
42.0
44.0
49.0
52.0
53.0
53.0
51.0
61.0
44.7
47.5
Source: Company reports, Macquarie Research, January 2015
Risks, opportunities and a look ahead
 Despite the high-quality nature of the resource, there remain some project-specific risks that should be
noted. The first risk we would like to highlight is that permitting of uranium development projects can take
time. Hathor (taken out by Rio Tinto – RIO AU, A$58.50, Outperform, TP: A$72.00, Adrian Wood), in their
2011 PEA on the Roughrider project in the Athabasca estimated that the environmental assessment
would take an estimated 36 to 48 months to complete. Given that the Triple R deposit sits under a
shallow lake, we would assume that the environmental review would take at least that length of time.
 A second noteworthy risk is that there is no uranium processing facility in the vicinity of the PLS
project. As a result we have incorporated $450m in preproduction capital spending into our model.
 A third risk is associated with Macquarie’s view of the uranium market in general. We believe Uranium
will remain in oversupply until at least 2020 driven primarily by Chinese stockpiles. Our Commodities
team forecasts a gradual price increase from $35/lb to $53/lb through 2019 and assumes a long-term
price of $60/lb [LINK].
 Notwithstanding these risks, we believe Fission will continue to add value by advancing the project.
They are currently conducting a winter resource delineation drill program and are expected to follow
that with a preliminary economic assessment in 2Q15. The company had just under C$30m in cash at
the end of 3Q14 so we assume they remain fully funded through these work programs.
Valuation and Sensitivity to Uranium Prices
Our model derives a fully-funded NAV8% of C$2.73/sh based on a long-term uranium price of $60/lb, which
means that FCU is currently trading at ~0.4x NAV. We note that using current spot prices for uranium, our
NAV drops to ~C$1.00-1.35/sh (for uranium prices between $35-40/lb), which is generally in line with FCU’s
current market value. We maintain that there is significant value embedded in this story even at drastically
lower Uranium prices. A +/-10% swing in Uranium prices impacts our NAV8% by +/-15%.
12 January 2015
5
Macquarie Research
Fission Uranium
Fig 6 Macquarie valuation sensitivity to uranium prices
$2.73
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
$55.00
$60.00
$65.00
$70.00
$75.00
$80.00
$85.00
$90.00
$95.00
0.0%
$0.45
$1.27
$2.10
$2.92
$3.74
$4.56
$5.38
$6.21
$7.03
$7.85
$8.68
$9.50
$10.32
$11.15
$11.97
2.0%
$0.39
$1.05
$1.70
$2.36
$3.02
$3.68
$4.33
$5.00
$5.66
$6.32
$6.98
$7.64
$8.30
$8.96
$9.62
4.0%
$0.33
$0.86
$1.39
$1.92
$2.46
$2.99
$3.52
$4.05
$4.59
$5.12
$5.66
$6.19
$6.73
$7.26
$7.80
6.0%
$0.28
$0.72
$1.15
$1.58
$2.01
$2.44
$2.88
$3.32
$3.75
$4.19
$4.63
$5.06
$5.50
$5.94
$6.37
8.0%
$0.24
$0.60
$0.95
$1.31
$1.66
$2.02
$2.37
$2.73
$3.09
$3.45
$3.81
$4.17
$4.53
$4.89
$5.25
10.0%
$0.21
$0.50
$0.80
$1.09
$1.38
$1.68
$1.97
$2.27
$2.57
$2.87
$3.17
$3.46
$3.76
$4.06
$4.36
12.0%
$0.19
$0.43
$0.67
$0.92
$1.16
$1.40
$1.65
$1.90
$2.15
$2.40
$2.65
$2.90
$3.15
$3.40
$3.64
14.0%
$0.17
$0.37
$0.57
$0.78
$0.98
$1.19
$1.39
$1.60
$1.81
$2.02
$2.23
$2.44
$2.65
$2.86
$3.07
16.0%
$0.15
$0.32
$0.50
$0.67
$0.84
$1.01
$1.19
$1.36
$1.54
$1.72
$1.89
$2.07
$2.25
$2.42
$2.60
Source: Macquarie Research, January 2015
12 January 2015
6
Macquarie Research
Fission Uranium
Fission Uranium (FCU CN; C$1.01, Outperform, TP: C$2.25)
Incom e Statem ent
Total revenue
Cost of Sales
Operating margin
Depreciation
EBT
Total tax
Net Incom e
Unit
US$m
US$m
US$m
US$m
US$m
US$m
US$m
2014
0
0
0
0
(4)
(1)
(5)
2015E
0
0
0
0
(15)
(3)
(12)
2016E
0
0
0
0
(16)
(4)
(12)
2017E
0
0
0
0
(16)
(4)
(12)
2018E
0
0
0
0
(24)
(6)
(17)
Adjusted EBITDA
Adjusted Net Incom e
Adj. EPS FD
US$m
US$m
US$
(8)
(5)
(0.02)
(7)
(5)
(0.01)
(8)
(6)
(0.01)
(8)
(6)
(0.01)
(8)
(11)
(0.03)
Cash Flow Statem ent
Operating cash flow
Cash flow from investing
Cash flow from financing
Net change in cash
CFPS FD
Unit
US$m
US$m
US$m
US$m
US$
2014
(7)
(21)
41
29
(0.03)
2015E
(4)
(16)
44
50
(0.01)
2016E
(3)
(5)
30
71
(0.01)
2017E
(3)
(10)
0
58
(0.01)
FCF (Macquarie)
FCF (Forw ard curve)
FCF Yield
US$m
US$m
%
(7)
(1020)
(309%)
(8)
(402)
(122%)
(8)
37
11%
(13)
118
36%
Balance Sheet
Cash and equivalents
Working Capital
Debt
Total S/H equity
Enterprise Value
Unit
US$m
US$m
US$m
US$m
US$m
2014
29
26
0
237
-
2015E
50
45
4
273
285
2016E
71
67
4
300
263
2017E
58
54
4
296
276
Price assum ptions
USD/CAD
Production
Patterson Lake South (100%)
Total Uranium production
Uranium cash costs per ounce
Valuation
P/E
P/CF
Copper
EV/EBITDA
(consolidated)
2018E
P/NAV
(9)
(30)
500
NAV Breakdow n (8% discount)
519
(0.02)
Uranium Operations
Patterson Lake project NPV
(39)
Regional project
153
46%
Developm ent NAV
2018E
519
514
304
487
115
Cash
Total debt
Corp/G&A
Total NAV (undiluted)
Operating Multiple
Unit
2014
1.00
2015E
1.03
2016E
1.10
2017E
1.10
2018E
1.10
Unit
000mlbs
000m lbs
US$
2012
0
0
0
2013
0
0
0
2014
0
0
0
2015E
0
0
0
2016E
0
0
0
Unit
x
x
x
x
2012
NMF
NMF
NMF
0.37
2013
NMF
NMF
NMF
2014
NMF
NMF
NMF
2015E
NMF
NMF
NMF
2016E
NMF
NMF
NMF
US$m
US$ / Sh
C$ / Sh
% Total
981
90
2.43
0.22
2.70
0.25
99%
9%
1,071
2.65
2.95
108%
29
(4)
(102)
0.07
(0.01)
(0.25)
0.08
(0.01)
(0.28)
993
0.80
2.46
2.73
3%
(0%)
(10%)
100%
Source: Company reports, Macquarie Research, January 2015
12 January 2015
7
Macquarie Research
Fission Uranium
Important disclosures:
Recommendation definitions
Volatility index definition*
Financial definitions
Macquarie - Australia/New Zealand
Outperform – return >3% in excess of benchmark return
Neutral – return within 3% of benchmark return
Underperform – return >3% below benchmark return
This is calculated from the volatility of historical price
movements.
All "Adjusted" data items have had the following
adjustments made:
Added back: goodwill amortisation, provision for
catastrophe reserves, IFRS derivatives & hedging, IFRS
impairments & IFRS interest expense
Excluded: non recurring items, asset revals, property
revals, appraisal value uplift, preference dividends &
minority interests
Very high–highest risk – Stock should be expected
to move up or down 60–100% in a year – investors
should be aware this stock is highly speculative.
Benchmark return is determined by long term nominal
GDP growth plus 12 month forward market dividend yield
High – stock should be expected to move up or
down at least 40–60% in a year – investors should
be aware this stock could be speculative.
Macquarie – Asia/Europe
Outperform – expected return >+10%
Neutral – expected return from -10% to +10%
Underperform – expected return <-10%
Medium – stock should be expected to move up or
down at least 30–40% in a year.
Macquarie First South - South Africa
Outperform – expected return >+10%
Neutral – expected return from -10% to +10%
Underperform – expected return <-10%
Low–medium – stock should be expected to move
up or down at least 25–30% in a year.
Macquarie - Canada
Outperform – return >5% in excess of benchmark return
Neutral – return within 5% of benchmark return
Underperform – return >5% below benchmark return
Low – stock should be expected to move up or
down at least 15–25% in a year.
* Applicable to Asia/Australian/NZ/Canada stocks
only
Macquarie - USA
Outperform (Buy) – return >5% in excess of Russell 3000
index return
Neutral (Hold) – return within 5% of Russell 3000 index
return
Underperform (Sell)– return >5% below Russell 3000
index return
EPS = adjusted net profit / efpowa*
ROA = adjusted ebit / average total assets
ROA Banks/Insurance = adjusted net profit /average
total assets
ROE = adjusted net profit / average shareholders funds
Gross cashflow = adjusted net profit + depreciation
*equivalent fully paid ordinary weighted average number
of shares
All Reported numbers for Australian/NZ listed stocks are
modelled under IFRS (International Financial Reporting
Standards).
Recommendations – 12 months
Note: Quant recommendations may differ from
Fundamental Analyst recommendations
Recommendation proportions – For quarter ending 31 December 2014
Outperform
Neutral
Underperform
AU/NZ
51.80%
31.80%
16.39%
Asia
58.06%
27.37%
14.57%
RSA
45.07%
30.99%
23.94%
USA
44.42%
50.10%
5.48%
CA
60.54%
35.37%
4.08%
EUR
46.81% (for US coverage by MCUSA, 5.29% of stocks followed are investment banking clients)
33.51% (for US coverage by MCUSA, 3.08% of stocks followed are investment banking clients)
19.68% (for US coverage by MCUSA, 0.44% of stocks followed are investment banking clients)
FCU CN vs TSX, & rec history
RIO AU vs ASX 100, & rec history
(all figures in CAD currency unless noted)
(all figures in AUD currency unless noted)
Note: Recommendation timeline – if not a continuous line, then there was no Macquarie coverage at the time or there was an embargo period.
Source: FactSet, Macquarie Research, January 2015
12-month target price methodology
FCU CN: C$2.25 based on a NAV methodology
RIO AU: A$72.00 based on a DCF methodology
Company-specific disclosures:
FCU CN: The primary analyst for Fission Uranium has visited its material operations and development assets within the past year; the company has
furnished local transportation and accommodations as part of these site visits. Macquarie Capital Markets Canada Ltd. or one of its affiliates managed or comanaged a public offering of securities of Fission Uranium Corp in the past 12 months, for which it received compensation. Macquarie Capital Markets
Canada Ltd. or one of its affiliates managed or co-managed a public offering of securities of Fission Uranium Corp in the past 12 months, for which it
received compensation. MACQUARIE CAPITAL MARKETS CANADA LTD./MARCHÉS FINANCIERS MACQUARIE CANADA LTÉE. or one of its affiliates
managed or co-managed a public offering of securities of Fission Uranium Corp in the past 12 months, for which it received compensation. RIO AU: The
analyst and/or associated parties own or have other interests in securities issued by Rio Tinto Limited. MACQUARIE CAPITAL (AUSTRALIA) LIMITED or
one of its affiliates has provided Rio Tinto Limited with investment advisory services in the past 24 months, for which it received compensation.
Important disclosure information regarding the subject companies covered in this report is available at www.macquarie.com/disclosures.
Date
01-May-2014
Stock Code (BBG code)
FCU CN
Recommendation
Outperform
Target Price
C$2.25
Target price risk disclosures:
FCU CN: Any inability to compete successfully in their markets may harm the business. This could be a result of many factors which may include geographic
mix and introduction of improved products or service offerings by competitors. The results of operations may be materially affected by global economic
conditions generally, including conditions in financial markets. The company is exposed to market risks, such as changes in interest rates, foreign exchange
rates and input prices. From time to time, the company will enter into transactions, including transactions in derivative instruments, to manage certain of
these exposures.
RIO AU: Any inability to compete successfully in their markets may harm the business. This could be a result of many factors which may include geographic
mix and introduction of improved products or service offerings by competitors. The results of operations may be materially affected by global economic
conditions generally, including conditions in financial markets. The company is exposed to market risks, such as changes in interest rates, foreign exchange
rates and input prices. From time to time, the company will enter into transactions, including transactions in derivative instruments, to manage certain of
these exposures.
12 January 2015
8
Macquarie Research
Fission Uranium
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12 January 2015
9
Macquarie Research
Fission Uranium
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