Glossary

Areva
The French energy and connectors Group.

Capital expenditure
Purchases of property, plant and equipment.

Cascade
The arrangement of centrifuges connected in parallel and in series is termed a “cascade”. In a uranium enrichment plant several cascades are operated in parallel to form an “operational unit” producing one U235 assay. Various operational units form one enrichment plant.

Deconversion
This is the process of removing the volatile fluorine component from uranium hexafluoride to make stable uranium oxide (U3O8). URENCO has chosen to use U3O8 as the long-term retrievable storage form of uranium.

EBITDA
Earnings before interest (including other finance costs), taxation, depreciation and amortisation (or income from operating activities plus depreciation and amortisation).

Enrichment
The step taken in the nuclear fuel cycle that increases the concentration of U235, relative to U238 in order to make uranium usable as a fuel for light water reactors.

ETC
Enrichment Technology Company Limited.

Euratom
The European Atomic Energy Community, established in 1957 by members of the European Union.

EUP
Enriched Uranium Product, i.e. UF6 enriched, typically, to between 3% and 5% U235 content.

Feed
Natural or reprocessed uranium, previously converted to UF6.

FFO/TAD
The ratio of Funds From Operations (FFO) to Total Adjusted Debt (TAD), where FFO is Net income after tax, plus depreciation, plus non designated derivatives plus decommissioning and tails provisions charged to the income statement, less movements in Decommissioning and “Tails” provisions, and TAD is Net Debt plus Decommissioning and Tails provisions and Retirement Benefit Obligations.

FRS
Financial Reporting Standards

Gas centrifuge
Gas centrifugation is a uranium enrichment process which uses rapidly spinning cylinders (gas centrifuge) to increase the proportion of the useful U235 isotope.

Gaseous diffusion
Gaseous diffusion is a uranium enrichment process which uses porous barriers to increase the proportion of the useful U235 isotope.

IAEA
International Atomic Energy Agency.

IAS
International Accounting Standards.

IFRS
International Financial Reporting Standards.

Joint Committee
The committee of representatives of the Governments of the Netherlands, the United Kingdom and Germany that oversees URENCO’s compliance with the Treaty of Almelo.

Louisiana Energy Services LLC
Parent company for URENCO USA; 100% owned by the URENCO Group.

Net assets
Total assets less total liabilities

Net debt
Loans and Borrowings (current and non-current) plus obligations under finance leases less cash and cash equivalents.

Net finance costs
Finance costs less finance income.

Net income
Income for the year attributable to equity holders of the parent.

Net interest
Net finance costs excluding income and costs on non designated hedges and excluding capitalised borrowing costs.

Nuclear fuel supply chain
The multiple steps that convert uranium as it is extracted from the earth to nuclear fuel for use in power plants. Uranium enrichment is one step in the nuclear fuel supply chain.

NRC
Nuclear Regulatory Commission – the United States Nuclear regulator.

Order book
Contracted and agreed business.

SWU
Separative Work Unit. The standard measure of the effort required to increase the concentration of the fissionable U235 isotope.

Tails (Depleted UF6)
Uranium hexafluoride that contains a lower concentration than the natural concentration (0.711%) of the U235 isotope.

Toll enrichment:
A proposed arrangement whereby customer owned uranium can be enriched in uranium-235 content in facilities upon payment of a service charge by the suppliers.

Treaty of Almelo
In the early 1970s the German, Dutch and British Governments signed the Treaty of Almelo, an agreement under which the three partners would jointly develop the centrifuge process of uranium enrichment.

Treaty of Cardiff
In July 2005 the German, Dutch, British and French Governments signed the Treaty of Cardiff, an agreement between the four Governments to supervise the collaboration between URENCO and Areva in their Joint Venture, ETC.

Treaty of Washington
In July 1992 the German, Dutch, British and United States of America Governments signed the Treaty of Washington, an agreement which was required in order to permit the establishment of the National Enrichment Facility.

tSW
Tonnes of Separative Work.

tSW/a
Tonnes of Separative Work per annum.

Turnover
Revenue from the sale of goods and services.

UEC
URENCO Enrichment Company Limited.

UK GAAP
The Generally Accepted Accounting Practice in the UK.

Uranium
A fairly abundant metallic element. Approximately 993 of every 1,000 uranium atoms are U238. The remaining seven atoms are U235 (0.711%), which is used in today’s nuclear power stations to generate energy by fission.

Uranium Hexafluoride (UF6)
All enrichment processes today work with gaseous material; therefore uranium is converted to UF6.

URENCO USA
URENCO’s fourth enrichment facility in New Mexico, US, owned and operated by Louisiana Energy Services LLC.

USEC
USEC Inc, based in the US.

U3O8
Uranium oxide, the most stable form of uranium.

Working capital
Inventories, Trade and other receivables, and Cash and cash equivalents, less the current portion of Trade and other payables.