Energy Fuels makes efforts to sustain current drop in uranium prices
Proactive Investors by Deborah Bacal 16 Nov 13
Energy Fuels (TSE:EFR)(OTCQX:EFRFD), which recently gained a majority stake in one of the largest and highest grade uranium projects in the U.S. through its acquisition of Strathmore Minerals, reported widened third quarter losses as a result of a drop during the period in both uranium spot and term prices, which it sees rising in the future.
For the three months to September 30, America’s largest conventional uranium producer, which says it has a strategy in place to beat current low prices, reported net loss was $70.47 million, or $4.30 per share, compared to $19.16 million, or $1.41 per share, a year ago. Revenues fell slightly to $24.5 million from $25.03 million.
As a result of the downward trend in prices through to the end of the quarter and Energy Fuels’ expectations to place the Pinenut mine on stand-by in July of next year, the company said it recorded an impairment loss of $60.26 million in the period. ince July 1, the spot price of uranium dropped from $39.65 per pound to its current price of $35.35 per pound, the company noted, and the long term price declined from $57.00 per lb. to $50.00 per pound.
Company slows uranium mining in northern Arizona,
Yahoo 7 Finance 21 Nov 13,
Uranium mining company to temporarily halt operations in northern Arizona amid low ore prices. FLAGSTAFF, Ariz. (AP) — The only two uranium mines operating in Arizona and an associated mill in southern Utah are set to cease operations temporarily as prices for the ore decline.
Energy Fuels Resources Inc. said uranium at its Arizona One Mine in the north part of the state will be depleted in early 2014, and the nearby Pinenut Mine and the White Mesa Mill in Blanding, Utah, will be placed on standby next year.
The move comes after the company stopped short of extracting uranium at another mine south of the Grand Canyon near Tusayan and as per-pound prices for uranium on the spot market dip to a five-year low, in the mid-$30s. The company plans to maintain the sites so that they can begin operating if the uranium market improves……..
Environmentalists are looking to the U.S. Forest Service and the U.S. Bureau of Land Management to ensure that the company doesn’t leave anything behind that would harm wildlife or the landscape.
“It’s a good thing on the one hand, but there’s a systemic problem in the regulations by the land management agencies that allow these mines to blink on and off at will without any review or revision in their plans of operation,” said Roger Clark of the Grand Canyon Trust.