By: Liezel Hill
10th August 2009
TORONTO (miningweekly.com) – Vancouver-based Uranium One reported a second quarter loss of $265-million, compared with a $68-million loss a year earlier, mainly because of a write-off of $251-million associated with the firm’s Dominion mine, in South Africa, which was closed last year and is now being held for sale.
Excluding one-off items, the adjusted net loss for the second quarter was $12,9-million, compared with adjusted earnings for the second quarter of 2008 of $6,6-million.
Uranium One, which produces the nuclear fuel from mines in Kazakhstan, reported total attributable production of 833 800 lb for the three months ended June 30, 9% higher than the 767 100 lb of attributable production recorded a year ago and 18% higher than the first quarter of this year.
The average total cash cost a pound sold was $17/lb.
Revenue declined to $18,6-million, compared with $49,4-million in the second quarter of 2008, with the decrease attributed to lower sales volumes, which are timed differently to production, and a lower average realised uranium price.
The company maintained its full-year production guidance at 3,5-million pounds, while total production guidance for 2010 has been increased by 35% from 5,6-million pounds to 7,5-million pounds, after the completion of the firm’s acquisition of a 50% interest in the Karatau mine.
The company also announced on Monday it had agreed to buy assets in Wyoming for $35-million.
Uranium One will buy the Irigaray in situ recovery (ISR) central processing plant, the Christensen Ranch satellite ISR facility and the associated uranium resources in the Powder River Basin from a joint venture between Areva SA and EDF.
The Irigaray and Christensen Ranch facilities will form the basis of a new operating plan for the company’s projects in Wyoming, Uranium One said in a statement.
The company expects its existing Moore Ranch project will now become a satellite ISR operation, with loaded resins being transported to Irigaray for further processing.
Uranium One’s additional projects in the Powder River Basin, including Ludeman, Peterson, Allemand-Ross and Barge could also be developed as satellite operations with final processing through Irigaray, the firm said.
“By acquiring existing, licensed production facilities, we will reduce the permitting and construction risk associated with developing our own central production plant,” CEO Jean Nortier said in a statement.
“Now, with a clear path to commencing uranium production in the US, we believe that the underlying value of our Wyoming asset base will become apparent.”
Edited by: Liezel Hill