Uranium One Reports 450% Increase in Quarterly Net Earnings

Tuesday, 09 August 2011 14:15

Uranium One Inc. reported quarterly revenue of $112.9 million for Q2 2011 based on sales of 2.0 million pounds at an average realized sales price of $58 per pound at a total cash cost per pound sold of $15. Quarterly production was 2.4 million pounds. Net earnings during Q2 2011 were $29.7 million, or $0.03 per share.

Q2 2011 Highlights

Operational

Total attributable production during Q2 2011 was 2.4 million pounds, 33% higher than total attributable production of 1.8 million pounds during Q2 2010.
The average total cash cost per pound sold was $15 during Q2 2011, similar to the average cash cost per pound sold during Q2 2010.

Financial

Attributable sales volumes during Q2 2011 were 2.0 million pounds, 33% higher than 1.5 million pounds sold during Q2 2010.
Revenue was $112.9 million in Q2 2011, 71% higher than $66.0 million in Q2 2010.
The average realized sales price during Q2 2011 was $58 per pound compared to $43 per pound in Q2 2010. The average spot price in Q2 2011 was $56 per pound.
Earnings from mine operations were $61.7 million during Q2 2011, a 151% increase from earnings from mine operations of $24.6 million in Q2 2010 due to increased sales volumes and an increase in the realized sales price and similar operating expenses.
Net earnings during Q2 2011 increased by 450% to $29.7 million, or $0.03 per share compared to net earnings of $5.4 million, or $0.01 per share Q2 2010.
Adjusted net earnings during Q2 2011 increased by 252% to $27.1 million, or $0.03 per share compared to adjusted net earnings of $7.7 million, or $0.01 per share in Q2 2010.

Corporate

On June 7, 2011, Uranium One announced that its 51% shareholder, ARMZ, had completed the acquisition of Mantra Resources Ltd. Uranium One became the operator of Mantra’s Mkuju River Project in Tanzania pursuant to agreements entered into with ARMZ in connection with the closing.

Chris Sattler, Chief Executive Officer of Uranium One, commented: “The Uranium One team continues to post strong operational and financial results in 2011. This quarter saw a continued low cash cost with a higher than market average sales price. Following the close of ARMZ’s Mantra Resources acquisition, Uranium One became the operator of the Mkuju River Project and we continue to focus on integrating Mantra Resources and updating the Mkuju River Definitive Feasibility Study.”

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