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Uranium One reports rise in quarterly net earnings to $29.7 mln

Uranium mining and exploration company Uranium One reports five-fold increase in second quarter profits on the back of higher production and improved prices

Uranium One has reported a net profit of US$ 29.7 million, or US$0.03 per share for the second quarter compared to US$5.4 million, or US$0.01 per share, for the same quarter last year, Independent Online reported.

The uranium mining and exploration company with a secondary listing on JSE has reported a five-fold increase in its profits for three months to end June on the back of higher production and improved prices.

Meanwhile, revenues were 71% higher at US$112.9 million from US$66 million a year ago while the operating earnings quadrupled to US$48.9million from US$12.1 million a year ago. Sales during the quarter stood at 2.0 million pounds at an average realized sales price of US$58 per pound compared to sales of 1.5 million pounds at an average realized sales price of YS$43 per pound in last year’s second quarter.

The total attributable production during the quarter was 33% higher at 2.4 million pounds compared with 1.8 million pounds reported during the same quarter last year.

Talking about the outlook for the uranium mining sector, the company said a serious incident at Fukushima in Japan earlier this year would have near-term impacts on uranium demand due to loss of capacity, programs delays and extended outages on account of inspections and upgrades.

However, broader growth rates for nuclear power remained robust on the strength of emerging markets of Middle East, China, India and Russia.

The uranium mining company has kept its total production guidance for 2011 at 10.5 million pounds with output expected to increase to 12.5 million pounds in 2012. Its attributable sales estimate for 2011 is about 9.5 million pounds with sales seen at 12.0 million pounds in 2012. - I-Net Bridge. 

Uranium One is a Canadian-based company and is also the largest publicly traded uranium producers. It has globally diversified portfolio of assets located in Kazakhstan, the United States, Australia.

With a 51% ownership stake, Uranium One’s major shareholder is JSC Atomredmetzoloto (ARMZ) which is a wholly owned subsidiary of Rosatom, the Russian State Corporation for Nuclear Energy.

Artika Shah

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