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AREVA’s new entity NewCo struggles with unprofitable uranium mine in Niger

Romandie 31st Oct 2017,[Machine translation] NewCo, Areva’s entity resulting from the
restructuring of the nuclear group refocused on the fuel cycle, has had to
depreciate some of its assets, particularly the uranium mine Imouraren in
Niger, according to a statement released Tuesday.

NewCo published Tuesday its accounts for a shortened eight-month period (from January 1 to August
31, 2017), a decision taken as part of the restructuring of the group and
the exit of this entity from the tax consolidation perimeter so far
constituted around Areva SA. Although the published financial results
cannot be compared to the previous year of 12 months, the group
nevertheless indicated that it had spent 256 million euros in new
impairments between 30 June and 31 August.

Among them, 210 million euros concern mining assets, including 178 million euros for the only Imouraren
mine in Niger. The exploitation of this gigantic mine has been in abeyance
for several years, for want of a favorable conjuncture in civilian nuclear
power. Areva had already depreciated this asset twice, in 2015 and 2016, by
respectively 194 and 316 million euros. The new impairment losses are
linked to “both the unfavorable change in the euro-dollar exchange rate and
the unfavorable change in market price expectations” (of uranium), the
group said.

November 3, 2017 - Posted by | business and costs, France, Niger

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