JOHANNESBURG (Business Day) -- The company said that it expected to produce 320,000 lb of uranium from Dominion this year, compared with a previous forecast of 590,000 lb.
In February Uranium One CEO Neal Froneman left when the company substantially cut its original production targets.
Uranium One said Jean Nortier, who had filled the role of CEO in an interim capacity since February, had been appointed president and CEO of the company.
In the June quarter Uranium One increased production 24% to 767,000 lb of U308 compared with the previous quarter, mostly from its 70%-held Akdala mine and 70%-held South Inkai project in Kazakhstan.
Uranium One revised upward its production forecast from South Inkai but cut forecast output from its 30%-held Kharasan project, also in Kazakhstan, because of a delay in pilot production. After these revisions, it maintained its forecast for the year of 3.1-million pounds of U308.
At Dominion, second-quarter production almost doubled to 74,700 lb of uranium compared with the first quarter.
Underground development was continuing and grades were improving, but the main challenge was now to increase the productivity of new drill crews, Nortier said. Recoveries from the plant on tailings and blended underground ore had risen to 70% from 67%.
Nortier declined to reveal cash costs as the mine was still under development but said at current uranium prices Dominion would definitely be profitable over the life of the mine.
In the six months to June Uranium One made $71,9m in revenue compared with $64.9 million in the same period last year but posted a net loss of $182.7million ($57 million loss) after a $105 million impairment of assets for sale. This was equivalent to a loss of $0.39 per share ($0.02c).
Nortier said further impairments would be needed in the September quarter but said these were noncash items.
The company said it was still trying to sell its stake in Aflease Gold, which had a market value of $52 million. Earlier this year it sold part of its 67% stake to African Global Capital, which has an option to buy the other half. That option has not been exercised.
It said that a study on the feasibility of a uranium mine at Moore Ranch in the U.S. had indicated it would be technically and economically viable.
