Skip to main content

Ezulwini mine in South Africa

First Uranium Corp. says it lost $14.4-million (U.S.) in its third quarter.

That compares to a profit of $1.3-million in the year-ago period.

The Toronto-based gold and uranium miner says in a statement released early Tuesday its losses are mostly due to corporate expenses of $8.1-million and a foreign exchange loss of $7.4-million.

Story continues below advertisement

First Uranium also says that global market turbulence had an impact over the company's finances.

Earlier this month, an RBC Dominion Securities analyst said First Uranium could find itself insolvent unless it gets $100-million to $150-million in new funding to cover financing plans that fell through due to the withdrawal of a key government approval.

First Uranium had said it will suspend expansion plans after South African government officials revoked an environmental authorization for its Mine Waste Solutions operation and, in the process, disrupted the company's financing plans.

The South African government didn't give First Uranium any reasons for why it withdrew the environmental authorization.

The miner hopes to solve the issue soon, but is preparing for the worst-case scenario that it could have to go through the entire process again, which could take as long as a year.



Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨