Uranium One cuts production forecast, CEO resigns
The Canadian Press
February 21, 2008 at 1:06 PM EST
TORONTO — Shares in Uranium One Inc. plunged Thursday morning after the 2008 production forecast was slashed and the chief executive officer resigned.
Uranium production guidance has been cut by 32 per cent from a previous estimate, to 3.15 million pounds, on slow underground development of the Dominion mine in South Africa.
By early afternoon on the Toronto stock market, Uranium One shares were down $1.18 at $5.27, or more than 18 per cent, on 24.7 million traded.
Jean Nortier, executive vice-president for business development and a former chief financial officer, has been appointed interim CEO, succeeding Neal Froneman, who has resigned.
Mr. Froneman continues as CEO and director of Aflease Gold Ltd., while David Hodgson, a non-executive director, has been appointed acting chief operating officer of Uranium One.
At the Dominion mine, “development has been adversely affected by a number of factors, including disruption in electrical power supply and equipment breakdowns,” the company said in a release.
“Production for the 2008 year was also impacted by higher than expected leaching of near-surface uranium resources, higher than expected mining dilution and lower than expected grade for the surface tailings material currently being processed through the plant.”
Uranium One also owns 70 per cent of the operating Akdala uranium mine in Kazakhstan and is developing the South Inkai and Kharasan uranium projects in that country.
In addition, it owns the Honeymoon project in South Australia. In the United States, Uranium One has extensive property holdings in Wyoming, Texas, Utah and New Mexico, including the Shootaring Canyon Mill and the Hobson ISR facility.
Uranium One is also engaged in uranium exploration in the U.S., the Athabasca Basin of Saskatchewan, South Africa, Australia and the Kyrgyz Republic. |
