Uranium One (UUU-T) reported a net loss of US$258.8 million for the fourth quarter of 2008, amounting to a total loss of US$2.4 billion for the year, or US$5.24 per share.
The company wrote down US$1.3 billion from putting its Dominion project in South Africa on care and maintenance, US$1 billion on properties in the United States and US$100 million on its Honeymoon project in Australia and for significantly reducing exploration in Australia.
Production increased 41% to nearly 2.9 million lbs. U3O8 from 2007 while sales volumes were up 37% to 2.2 million lbs. U3O8.
The company received an average sale price of US$68 per lb. U3O8 in 2008, bringing in revenue of US$149.8 million down from US$83 per lb., and revenue of US$134 million in 2007.
The drop in uranium prices resulted in earnings from mine operations to drop 5% to US$96.7 million in 2008.
And while the company expects to increase production to 3.5 million lbs. in 2009, uranium prices will be significantly lower.
Uranium One expects to sell 2.8 million lbs. U3O8 and has already signed contracts for 2.2 million lbs. For 700,000 lbs. of that, the company has already agreed to sell for the weighted average floor price of about US$43 per lb.
Uranium One shares were down 1¢ today to $2.24 on a trading volume of 4.8 million shares.
The company has a 52-week trading high of $5.10, a low of 60¢ and about 470 million shares outstanding.
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