Uranium One posts third-quarter loss as it writes down mine value revenues drops/ UPDATE: Bank of America Lowers PO to $23 on Cameco on Lower Growth/ Cameco delays feasibility study at Kintyre project in Western Australia

Uranium One posts third-quarter loss as it writes down mine value revenues drops

By The Canadian Press | November 05, 2012

TORONTO - Uranium One Inc. (TSX:UUU) dropped to a loss in the third quarter as the miner booked a $79.1 million writedown related to the value of its shuttered South Zarechnoye uranium deposit.

The Toronto-based uranium miner also said Monday that uranium prices fell throughout the third-quarter and into the start of the current three-month period.

The company booked a quarterly loss of $61.6 million, or six cents per share, compared to a profit of $45.8 million, or five cents per share, a year earlier.

On an adjusted basis, earnings were $7.6 million or a penny per share, compared to adjusted net earnings of $46.4 million or five cents per share in the same period the previous year.

Revenues slipped to $142.6 million from $157.7 million.

The company said the decision to shutter the South Zarechnoye project, located in southern Kazakhstan, came after uranium sales were hard hit following the earthquake and tsunami in Japan last year that crippled the Fukushima nuclear plant.

Uranium One said prices have been falling in recent months, going below the $50 per pound mark in the third quarter to a range of $46.50 to $49.50 per pound, due to higher supply levels.

The company said those prices slid even further in the early part of the fourth quarter, with prices currently at about $41.

http://www.canadianbusiness.com/article/105496--uranium-one-posts-third-quarter-loss-as-it-writes-down-mine-value-revenues-drops#

UPDATE: Bank of America Lowers PO to $23 on Cameco on Lower Growth

David Johnson, Benzinga Staff Writer

 

Bank of America reiterated its Buy rating on Cameco (NYSE: CCJ[FREE Stock Trend Analysis]) but lowered its price objective from $24 to $23.

 

Bank of America commented, "We lowered our Cameco Corp. (CCO) price objective (PO) C$1/share to C$23, following very weak 3Q12 operating results (low uranium sales

Read more: http://www.benzinga.com/analyst-ratings/analyst-color/12/11/3057596/update-bank-of-america-lowers-po-to-23-on-cameco-on-lowe#ixzz2BRjV4HtN

 

Cameco delays feasibility study at Kintyre project in Western Australia

EBR Staff Writer Published 05 November 2012


Canada-based uranium producer Cameco has postponed the planned feasibility study on its Kintyre project located in Western Australia.
Earlier in October in 2012, Cameco had secured an approval for the Kintyre mine development from the native Martu people to develop the project.
The company quoted unfavorable market economics as the primary factor for the decision.

According to the company, timelines of its projects would change with improved conditions in the market, reported miningweekly.com.