JOHANNESBURG (Business Day) -- Uranium One's [TSX:UUU] stock halted three days of losses yesterday with a 42 cent gain on the Toronto Stock Exchange to C$50,05 after an upbeat presentation by interim CEO Jean Nortier at the BMO Conference in Hollywood.
On the JSE, the share price climbed 5,45% to end the day at R38,49 yesterday , up from Friday's low of R37,22.
The share price had slid after last Thursday's announcement that production forecasts from the Dominion mine in South Africa had been revised downwards from 2 million pounds of uranium this year to 590,000 pounds.
At the same time the company said CEO Neal Froneman, who led the group's international expansion strategy over five years, had resigned.
Froneman said last week the timing of the announcements together was unfortunate. The announcement made it clear he was still on good terms with Uranium One and would remain head of Aflease Gold, in which Uranium One is the major shareholder.
Nortier said the 600,000 pounds Uranium One had contracted to supply from Dominion this year would be met from mine output this year and last year, and stocks. Timing issues could call for short-term loans. All sales contract commitments would be met.
Nortier said apart from its six uranium mines in production or coming into production this year and next year, Uranium One was busy with other projects, these included feasibility studies to expand Dominion and refurbish the mill at Shootaring in the U.S., waiting for approvals to expand its Kazakh operations and further development at Wyoming.
The group held $152 million in cash at the start of last month and $161 million of debt in September. There were no plans to access capital markets. Cash could come from selling noncore assets or leveraging its balance sheet.
Also read of the recent developments at Dominion.
