August 8, 2011 / 9:53 PM / 7 years ago

UPDATE 1-Uranium One profit soars on uranium output, price

(In U.S. dollars unless noted)

TORONTO, Aug 8 (Reuters) - Uranium One UUU.TO posted a more than five-fold increase in profit on Monday, as the company boosted production by 33 percent and was paid more per pound of uranium sold.

Net income for the second quarter was $29.7 million, or 3 cents a share, compared with a year-ago profit of $5.4 million, or 1 cent a share.

Excluding one-time items, Canada’s No. 2 uranium producer said its earnings were $27.1 million, or 3 cents a share, in line with analysts estimates of 3 cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 71 percent to $112.9 million from $66 million in the year-ago period.

Total attributable production in the quarter rose 33 percent to 2.4 million pounds from 1.8 million pounds in the year-ago period.

The company sold 2 million pounds of uranium at an average price of $58 a pound, up from sales of 1.5 million pounds at an average price of $43 a pound in the second quarter of 2010.

Uranium One, which has operations in Kazakhstan, the United States, Australia and Canada, sells most of its uranium on the spot market or on contracts tied to the spot price.

The spot price slipped from around $70 a pound at the end of February to under $50 a pound in the aftermath of the nuclear crisis in Japan.

The company maintained its production guidance for 2011 at 10.5 million pounds, and at 12.5 million pounds in 2012. (Reporting by Julie Gordon; editing by Rob Wilson)

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