Uranium One Inc. is being taken private by its largest shareholder.SpaceManKris/Getty Images/iStockphoto
Uranium One Inc., which is being taken private by its largest shareholder, said Wednesday that it lost $68.8-million in the fourth quarter as it wrote down its investment in Mantra Resources.
The uranium miner said the loss amounted to seven cents per share in its fourth quarter compared with a loss of $1.1-million or zero cents per share a year earlier.
Revenue totalled $227.6-million, up from $157.9-million.
Uranium One wrote down the value of its investment in Mantra by $102.3-million in the fourth quarter due to delays, increased costs and lower uranium prices.
Excluding the charge and other one-time items, the company reported an adjusted profit of $34.9-million or four cents per share for the quarter compared with an adjusted profit of $21.4-million or two cents per share in the fourth quarter of 2011.
During the quarter, Uranium One sold 5.1 million pounds of uranium at an average realized price of $44 per pound compared with nearly 3.2 million pounds at $50 per pound a year earlier.
Earlier this month, shareholders and option holders of Uranium One Inc. voted to approve a deal that will see ARMZ Uranium Holding Co. take the company private.
The company has said it expects to close the deal in the second quarter of this year.
ARMZ, which owns a 51.4-per-cent stake in Uranium One, has agreed to pay $2.86 cash per share for the stock that it doesn't already own.
The offer values Uranium One at about $2.8-billion.
Uranium One owns assets in Kazakhstan, the United States, Australia and is an operator of, and a minority stakeholder in, the Mkuju River Project in Tanzania.