Uranium One net losses widen 3.2% to $63.6 mln in Q3
TORONTO. Nov 5 (Interfax) - Canada's Uranium One Inc saw its net losses widen 3.2% year-on-year in Q3 2013 to $64.7 million, the company said in a statement.
Uranium One, which is controlled by Russian state-owned uranium miner Atomredmetzoloto (ARMZ), boosted adjusted net profit more than four-fold to $30.1 million.
Revenue rose 4.8-fold to $41 million. Joint venture revenue grew 34% to $179.8 million.
Attributable sales volumes for Q3 2013 more than doubled to 6 million pounds sold from the corporation's operations and joint ventures at $37 per pound, down from $49 a year previously. Uranium mine output grew 5% to 3.2 million pounds.
Net losses more than doubled to $62.5 million in January-September 2013, but adjusted net profit jumped 38.6% to $44.5 million, revenue grew 120% to $58.1 million and joint venture revenue grew 13% to $348.3 million.
The company said it impaired the Honeymoon project due to continuing difficulties in the production process and issues in attaining design capacity combined with high mine operation costs. The carrying value of Honeymoon was therefore written down by $67.8 million.
Uranium One affirmed its 2013 mine production guidance of 12.5 million pounds, but the 2014 target was lowered from 13 million to 12.4 million pounds.
In Kazakhstan, Uranium One owns 70% of the Betpak Dala joint venture, which owns the Akdala Mine and the South Inkai Mine; 50% of the Karatau joint venture, 30% of the Kyzylkum joint venture (Kharasan project), 50% of the Akbastau joint venture and 49.67% of the Zarechnoye joint venture, which owns the Zarechnoye Mine and the South Zarechnoye Project. In the United States, the company owns 100% of the Willow Creek Project, and has a number of development projects in Wyoming. In Australia, Uranium One owns 51% of the Honeymoon Uranium Project. It is also the operator of Mantra Resources' Mkuju River project in Tanzania.
ARMZ closed a deal to consolidate 100% of the shares in Uranium One at the end of October.
