[miningmx.com] — URANIUM One posted a more than five-fold increase in profit on Monday, as the company boosted production by 33% and was paid more per pound of uranium sold.
Net income for the second quarter was $29.7m, or 3 cents a share, compared with a year-ago profit of $5.4 million, or 1c a share.
Excluding one-time items, Canada’s No. 2 uranium producer said its earnings were $27.1m, or 3c a share, in line with analysts estimates of 3c a share, according to Thomson Reuters.
Revenue rose 71% to $112.9m from $66m in the year-ago period.
Total attributable production in the quarter rose 33% to 2.4 million pounds (m lb)from 1.8m lb in the year-ago period.
The company sold 2m lb of uranium at an average price of $58/lb, up from sales of 1.5m lb at an average price of $43/lb in the second quarter of 2010.
Uranium One, which has operations in Kazakhstan, the United States, Australia and Canada, sells most of its uranium on the spot market or on contracts tied to the spot price.
The spot price slipped from around $70/lb at the end of February to under $50/lb in the aftermath of the nuclear crisis in Japan.
The company maintained its production guidance for 2011 at 10.5m lb, and at 12.5m lb in 2012.
