VANCOUVER (CP) -- Having fallen from lofty heights during last year's love affair with uranium stocks, Uranium One's shares rose 49 cents Wednesday, or 15%, from the previous close. However, at $3.79, they are still at the low end of their 52-week range.
The company announced early Wednesday, before markets opened, that it produced record volume of the form of uranium known as U3O8 and confirmed that its on target to produce 3.1 million pounds of it this year.
Uranium One, which reports in U.S. currency, sold 685,600 pounds of U3O8 at an average realized price of US$72 per pound during the quarter, resulting in revenue of $49.4 million.
That's roughly three times sales of 244,200 pounds of U3O8 and revenue of $23.3 million recorded by the company during the second quarter of 2007.
As a result of impairments recognized on non-core assets held for sale, Uranium One had a net loss from continuing operations of $68.2 million, or 15 cents per share, in the second quarter.
Discontinued operations provided $300,000 of net earnings in the most recent quarter, compared with a $600,000 net loss in the second quarter of 2007.
Uranium One's continuing operations had a net loss of $13.1 million or four cents per share for the same period of 2007.
Jean Nortier, whose appointment as president and chief executive was confirmed Wednesday, said he was encouraged by the second-quarter results and excited about Uranium One's management team and assets.
"I am also pleased with the pace of development at our U.S. projects, the progress made in disposing of non-core assets and the conclusion of a credit facility," Nortier said in a statement.
Nortier has extensive experience with the Uranium One group. He has acted as chief financial officer, executive vice-president corporate development and most recently, interim CEO.
In addition, Robert van Niekerk was appointed executive vice-president for technical services, based in Denver He's succeeded in his previous position of senior VP for Africa and Europe by Eben Swanepoel.
Uranium One's announcements came as the world's largest uranium producer, Cameco Corp. (CCO), announced further flooding problems at its Cigar Lake project in Saskatchewan.
The startup of Cigar Lake, which has the potential to be one of the world's top sources of uranium, has already been delayed by several years due flooding.
Uranium One is one of several smaller mining companies that has benefited in the past from investor interest in resource companies, and in particular junior uranium producers that could benefit from Cameco's problems and a potential uranium shortage in the coming years.
However, Uranium One's shares have fallen from their high of $C13.34, in September 2007, to a 52-week low of $3.04 in March. The shares recovered slightly after that but fell again to as low as $3.15 in July.
Since then, Uranium One's shares have traded no higher than $3.80.
(c) The Canadian Press 2008