BETHESDA, Md. – Centrus Energy Corp. (NYSE MKT: LEU) announced today that it has signed a memorandum of understanding with ConverDyn to explore the potential for joint sales of the companies’ nuclear fuel products and services to utility customers around the world.
“We believe that, working together with ConverDyn, we can provide customers the benefits of flexibility in satisfying their fueling needs while strengthening the U.S. nuclear supply chain,” said Daniel B. Poneman, Centrus president and chief executive officer.
Malcolm Critchley, ConverDyn President, stated: “By working with Centrus, ConverDyn is able to better capitalize on its position in the value chain by combining uranium supply and conversion with Centrus’ enrichment to create integrated supply solutions for customers.”
The MOU establishes a framework to work together to pursue various commercial initiatives to support greater competition in the world nuclear fuel cycle, including through sales of enriched uranium product containing components supplied by each party. Such sales could occur in a variety of potential transaction structures where each party would supply a different component of the enriched uranium product and one or both parties would contract with the customer for the sale.
Centrus Energy Corp. is a trusted supplier of enriched uranium fuel for commercial nuclear power plants in the United States and around the world. Our mission is to provide reliable and competitive fuel goods and services to meet the needs of our customers, consistent with the highest levels of integrity, safety, and security.
ConverDyn supplies over 60% of global nuclear power plants from the world’s largest UF6 conversion facility in Metropolis, Illinois—a strategic U.S. energy asset. ConverDyn is a general partnership between U.S. firms General Atomics and Honeywell.
This news release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 – that is, statements related to future events. In this context, forward-looking statements may address our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For Centrus Energy Corp., particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include: the continued impact of the March 2011 earthquake and tsunami in Japan on the nuclear industry and on our business, results of operations and prospects; changes in the nuclear energy industry; pricing trends and demand in the uranium and enrichment markets and their impact on our profitability; the impact and potential extended duration of the current supply/demand imbalance in the market for low-enriched uranium (“LEU”); risks related to our ability to sell the LEU we procure under our purchase obligations under our supply agreements; risks relating to our sales order book, including uncertainty concerning customer actions under current contracts and in future contracting due to market conditions and lack of production capability; risks associated with our reliance on third-party suppliers to provide essential services to us; movement and timing of customer orders; the impact of government regulation by the U.S. Department of Energy and the U.S. Nuclear Regulatory Commission; the competitive environment for our products and services; the impact of financial market conditions on our business, liquidity, prospects, pension assets and insurance facilities; revenue and operating results can fluctuate significantly from quarter to quarter, and in some cases, year to year; and other risks and uncertainties discussed in this and our other filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2015 and subsequent Quarterly Reports on Form 10-Q, which are available on our website at www.centrusenergy.com. We do not undertake to update our forward-looking statements except as required by law.
Media: Jeremy Derryberry (301) 564-3392
Investors: Don Hatcher (301) 564-3460