March 8, 2011 / 1:01 PM / 7 years ago

UPDATE 2-Uranium One posts Q4 net loss on write-down; shrs fall

* Q4 loss/shr $0.24 vs EPS $0.38, last year

* Q4 rev more than doubled to $152.3 million

* Backs FY production view

* Shrs fall 4 pct (Rewrites; Adds outlook in paragraph 2, context on uranium prices in paragraph 3, and sales price in paragraph 7; Updates share)

March 8 (Reuters) - Canada’s Uranium One posted a quarterly loss as it took a $113.5 million write-down at its Honeymoon uranium project in Australia, sending its shares down 4 percent.

The company, in which Russian state-owned miner ARMZ has a 51 percent stake, however said it sees a strong year ahead with a resurgence in the price of uranium.

Uranium spot price UX-U3O8-SPT, which has gained more than 61 percent in the last 12 months, fell 3 percent to $69.75 on Tuesday.

Analysts expect the demand for uranium to stay strong throughout 2011 as Asia builds more reactors, and nuclear power gains in popularity around the world.

For the fourth quarter, the Vancouver-based Uranium One, whose main operations are in Kazakhstan, posted a net loss of $148.2 million, or 24 cents a share, against a profit of $179.6 million, or 38 cents a share, a year ago.

Excluding items, the company earned 1 cent per basic share.

The miner’s revenue more than doubled to $152.3 million. Average realized sales price came in at $53 per pound, up from $46 a pound, last year.

Analysts, on an average, were expecting earnings of 4 cents a share, excluding items, on revenue of $126.7 million, according to Thomson Reuters I/B/E/S.

The company backed its 2011 production outlook of 10.5 million pounds, a 42 percent rise over 2010.

Average cash costs per pound sold for the year are expected to rise 38 percent to $18.

The company also said it sees attributable capital expenditure of $243 million, and sales to be about 9.5 million pounds in 2011 and 12 million pounds in 2012.

Last month, peer Cameco Corp posted higher-than-expected earnings and said it expects growing demand from China for nuclear fuel.

Uranium One shares, which have risen nearly 30 percent since it reported a narrower third-quarter loss in November, were trading down 12 Canadian cents at C$6.07 on Tuesday on the Toronto Stock Exchange.

They touched a low of C$5.93 earlier in the session. (Reporting by Arnika Thakur in Bangalore; Editing by Joyjeet Das)

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