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$530m record revenue

Wednesday, 28th March, 2012

By Paula Doran

Uranium One has reported a record revenue of $530 million for 2011.

The company, which is in the final stages of commissioning at its Honeymoon uranium mine north of Cockburn, cites increased production and strong demand as the driving force behind the performance.

Total production at the company’s global holdings was a record 10.7 million pounds; that’s 43 per cent higher than the corresponding period for 2010 of just 7.4 million pounds.

Sales, too, increased with the production - Uranium One increased supply to market by 44 per cent.

All this in spite of market turbulence caused by the Fukushima reactor and the Japanese earthquake.

The Canadian company owns mines around the world, including a newly acquired interest in Tanzania, Kazakhstan, and the United States.

On his company’s stunning performance, Uranium One’s chief executive officer, Chris Sattler, said despite the challenges the nuclear energy industry had faced in 2011, their strategy had not changed and they would continue to focus on increased production.

“I am looking forward to continued strong results in 2012. We will continue to increase production while maintaining our position as the world’s lowest cost supplier of uranium.

“We expect demand for uranium to continue to grow through this decade and Uranium One, as one of the world’s largest producers, is well positioned to capitalize on this growth.”

In Australia, the Honeymoon mine produced 51,000 pounds of uranium for the year 2011, but more is expected as it swings into full production this year, and with a design capacity of 880,000 pounds per year, that’s certainly a reliable expectation.

The program for the Honeymoon mine, according to the company, is the installation of 96 more wells on site and the expansion of surface facilities.

According to its latest report, it has already spent $12.3 million in just the last year alone, slightly over the budget of $11 million.

But the Honeymoon project is already earning, with the first shipment of uranium concentrates exported to the US in February this year.

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