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UPDATE 1-Uranium One narrows loss, tweaks 2010 outlook
November 13, 2009 / 12:43 PM / 8 years ago

UPDATE 1-Uranium One narrows loss, tweaks 2010 outlook

* Adj share loss $0.02 vs consensus view $0.01 loss

* Revenue down 62 percent at $21.3 million

* Lowers 2010 production outlook

(In U.S. dollars)

TORONTO, Nov 13 (Reuters) - Uranium One UUU.TO said on Friday its third-quarter loss narrowed from a year earlier when it included a massive writedown.

The Canadian company, whose main operations are in Kazakhstan, posted a loss of $11.9 million, or 3 cents a share, in the quarter ended Sept. 30. That compared with a loss of $2.01 billion, or $4.30 a share, a year earlier, when the company absorbed a $2.8 billion writedown on assets in the United States and South Africa.

On an adjusted basis, the company posted a loss of 2 cents a share.

Analysts polled by Thomson Reuters I/B/E/S had expected a per-share loss of 1 cent, before items.

Revenue fell 62 percent to $21.3 million as uranium prices dropped and the company sold less uranium.

The company said average total cash cost per pound sold decreased to $15 per pound during the quarter, down from $17 per pound during the second quarter of 2009.

The company said its total attributable production outlook for 2009 remains unchanged at 3.5 million pounds, but it lowered its 2010 production to 6.8 million pounds from 7.5 million pounds, largely due to underperformance at its Kharasan and a slower ramp-up at South Inkai.

The company agreed in June to sell a 17 percent equity stake to Russia’s state-owned Rosatom in exchange for a 50 percent holding in the Karatau mine in Kazakhstan.

It is also completing a C$270 million private placement with Japanese investors Toshiba Corp (6502.T), Tokyo Electric Power Co (9501.T) and the Japan Bank of International Cooperation. ($1=$1.05 Canadian) (Reporting by Scott Anderson; Editing by Derek Caney)

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