TORONTO (Commodity Online): In a bleak report for the third quarter, Uranium One, the Vancouver-based mining giant, reported a loss of $11,9-million compared with a $2-billion loss a year earlier.

After stripping out certain items, Uranium One reported a third-quarter adjusted net loss of $7,8-million, compared with a $5,6-million adjusted project in the same period of last year.

Revenue for the quarter dropped 62% year-on-year, to $21,3-million, after sales volumes declined by 50% and the average realised uranium price, at $50/lb, was 25% lower.

“Our operations continue to generate some of the highest margins in the industry, with our total cash cost per pound sold decreasing by approximately 14% during the third quarter to $15/lb,” CEO Jean Nortier said in a statement.

Production for the quarter actually rose 19% year-on-year, to 834800 lb attributable to uranium one.

However, Uranium One saw its attributable inventory run up to 1,7-million pounds by the end of the quarter, compared with 1,4-million at June 30, as more uranium was produced than sold in the third quarter.

Attributable sales amounted to 423 100 lb, which was in line with scheduled deliveries under contracts with customers, the company said.

Uranium One produces the nuclear fuel from mines in Kazakhstan, but also has projects in Australia and the US, as well as Dominion in South Africa, which it has earmarked for sale.
(Source: Miningweekly.com)

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