Uranium One Inc. said first-quarter profit rose to $14-million, turning around a loss reported at the same time last year, but falling short of expectations.
The company, one of the world's largest publicly traded uranium producers, said the results were equal to a penny per share, compared to a loss of $1.4-million or nil per share a year earlier.
Adjusted profit was $14.7-million or 2 cents per share, below analyst predictions of five cents, according to a survey from Thomson Reuters.
Revenue jumped to $101.9-million from $35.5-million.
Uranium One said cash costs were $14 per pound during the quarter, below $18 a year earlier.
"This quarter saw continued, low cost growth from our operations and a smooth integration of our recently acquired Akbastau and Zarechnoye mines," said chief executive officer Chris Sattler in a release.
"This is an excellent start to 2011, and provides a solid platform for the company to focus on integrating Mantra Resources following the closing of ARMZ's acquisition in June."
Russian uranium miner JSC Atomredmetzoloto agreed to buy Mantra Resources Ltd. for $923.8-million cash (Australian), giving the option for Uranium One to buy out Mantra within a year. Uranium One will pay an equal price plus any additional expenditures and will have to seek shareholder approval at that time.
ARMZ currently holds a 30-per-cent stake in Uranium One.
The miner noted that it has felt the effects of lower uranium demand from Japan as the country shut down its Fukushima facility and delayed other projects after the tsunami and earthquake in March.
Both spot and uranium prices dropped after the disaster, but the company said there is a recovery starting, and a trend that shows global demand should fall five per cent over the next decade. It said that drop could prove beneficial to diversified low cost producers.
In its outlook, the company maintained its average uranium cash cost estimates at $18 a pound compared to $13 in 2010.
Uranium One has a globally diversified portfolio of assets in Kazakhstan, the United States and Australia.Report Typo/Error
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