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Uranium One reports fourth quarter loss on impairment charges

Last updated: 08:45 08 Mar 2011 EST, First published: 09:45 08 Mar 2011 EST

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Uranium One (TSE:UUU) reported a fourth quarter loss as results were hurt by a $113.5 million impairment charge related to its Honeymoon Uranium Project. 


For the fourth quarter, the a Vancouver-based uranium producer reported a $148.2 million loss, or a loss of 24 cents a share, compared to a net income of $179.6, or 38 cents per share, for the year-ago period.  Revenues came in at $152.3 million, up from $69 million. 


On an adjusted basis, earnings for the quarter came in at $8 million, or one cent a share. 


Analysts polled by Thomson Reuters expected earnings of 4 cents a share on revenues of $126.7 million. 


For the entire 2010, the company extended its losses to $189.7 million, or 31 cents a share, from a loss of $36 million, or 8 cents per diluted share. 


Revenues for 2010 more than doubled to $327 million from $152 million in 2009 as the company increased production and had a lower cash cost. 


During the year, the company produced 7.4 million pounds, a little more than double last year’s production of 3.6 million pounds. The average cash cost per pound sold was $13 per pound, an improvement from $16 a pound for the year before.


Looking ahead for 2011, the company expects to produce 10.5 million pounds of uranium and have an average cash cost of $18 per pound. 


Uranium One also expects sales to be about 9.5 million and 12 million pounds in 2011 and 2012, respectively.


Capital expenditures for 2011 are expected to be $243 million in total, with $78 million for wellfield development, $21 million for resource definition drilling and $144 million for plant and equipment.

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