May 14, 2008 / 9:49 PM / 10 years ago

UPDATE 1-Uranium One hit by provision, lower sales volume

(Adds details, stock price; in U.S. dollars unless noted)

TORONTO, May 14 (Reuters) - Uranium One Inc UUU.TO swung to a first-quarter loss as it saw lower sales volumes and booked an impairment provision, the company said late on Wednesday.

The miner said it lost $114.9 million, or 24 cents a share, in the three months ended March 31. That was down from a profit of $8 million, or 4 cents a share, in the same period a year earlier.

Uranium One said revenue fell to $22.5 million from $41.7 million a year earlier. It said lower sales volumes this quarter were partly offset by higher prices.

The company also took an impairment provision related to the value of its remaining stake in Aflease Gold. It had agreed to sell its shareholding in late March, and sold 43 percent of it the following month.

However, the buyer’s option to purchase the rest of Uranium One’s stake lapsed on May 8. Discussions with the buyer are continuing, it said.

Meantime, it took a provision of $103.5 million on the fair value of its remaining stake, it said.

Uranium One released its results after markets closed. During the day, its shares fell 30 Canadian cents to finish at C$4.23 on the Toronto Stock Exchange.

About a year ago, its stock was trading at C$17.30. ($1=$1 Canadian) (Reporting by Wojtek Dabrowski; editing by Rob Wilson)

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