Uranium One (UUU-T, SXRZF-O) reported a net loss of US$258.8 million for the fourth quarter of 2008, bringing its total loss for the year to US$2.4 billion, or US$5.24 per share.
The company wrote down US$1.3 billion on its Dominion project in South Africa, which it put on care and maintenance, US$1 billion on properties in the United States and US$100 million on its Honeymoon project and exploration in Australia.
At the same time the company, which also has substantial uramnium assets in Kazakhstan, increased production by 41% to nearly 2.9 million lbs. U3O8 from 2007 while sales volumes were up 37% to 2.2 million lbs. U3O8.
Uranium One sold its production for US$68 per lb. on average in 2008, bringing in revenue of US$149.8 million. That price was down from 2007, when uranium oxide went for US$83 per lb. on average, bringing in revenue of US$134 million.
Due to the price drop, earnings from mine operations fell 5% to US$96.7 million.
And while the company expects to increase production to 3.5 million lbs. U3O8 in 2009 from nearly 2.9 million lbs. last year, uranium prices will be significantly lower.
Uranium One expects to sell 2.8 million lbs. U3O8 this year. It has signed contracts for 2.2 million lbs., 700,000 lbs. of which it has agreed to sell for the weighted average floor price of about US$43 per lb.
Uranium One shares traded at $2.66 at presstime. The company has a 52-week trading high of $5.18, a low of 60¢ and about 470 million shares outstanding.
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