Uranium One drops to year-low after suffering net loss

Shares in Uranium One (TSX:UUU) briefly touched a year low on Tuesday after the Toronto-based miner swung into a net loss during its third quarter of 2012.

In early afternoon trade the counter had recovered somewhat to change hands at $1.96, down 2.2% on the day in heavy volumes, affording it a market value of $1.88 billion on the Toronto big board.

Uranium One reported 3Q revenue of $142.6 million at an average total cash cost per pound sold of $16 based on sales of 2.9 million pounds, down from 3.1 million pounds at an average realized sales price of $49 per pound.

Attributable production for the quarter was 3.1 million pounds, up 23% year on year. Uranium One operates mines and own exploration projects in Kazakhstan, the United States, Tanzania and Australia.

Attributable sales volumes for 3Q were 2.9 million pounds, compared to 3.1 million pounds sold during 3Q 2011.

The company's 3Q net loss totaled $61.6 million, or $0.06 per share, compared to net income of $45.8 million for 3Q 2011.

Adjusted net earnings for 3Q 2012 totaled $7.6 million, or $0.01 per share, compared to adjusted net earnings of $46.4 million in 3Q 2011.

Uranium One's total attributable production guidance for 2012 remains at 11.6 million pounds. Total attributable production for 2013 is estimated to be 12.5 million pounds. Attributable production for 2014 is estimated to be 13.0 million pounds.

During 2013, the average cash cost per pound sold is expected to be approximately $19 per pound, in line with the company's guidance of $19 per pound for 2012.

Uranium One expects to achieve guidance for sales of 11 million pounds in 2012. The company expects attributable sales to be approximately 12.5 million and 13.0 million pounds in 2013 and 2014, respectively.

The company also expects to incur attributable capital expenditures in 2013 of $107 million for wellfield development and $66 million for plant and equipment, totalling $173 million for its assets in Kazakhstan, the US and Australia.