JOHANNESBURG (miningweekly.com) – TSX- and JSE-listed First Uranium posted a $27,1-million loss for the three months ended September 30, compared with a loss of $18,4-million in the same quarter last year.
The South Africa-focused gold and uranium company attributed the higher loss to a foreign exchange loss on translation, higher interest and accretion expenses resulting from convertible notes issued in April 2010.
However, First Uranium recorded its second successive quarter of operating profits, owing to additional profits generated at its Mine Waste Solutions (MWS) tailings recovery operation and reduced losses from its underground Ezulwini mine.
The company's revenue doubled from $19,02-million in the second quarter of 2010, to $38,3-million in the period under review.
The company achieved total gold production of 33 418 oz for the three months ended September 30.
First Uranium CEO Deon van der Mescht said that the production build up at MWS remained on track to be completed in May 2011, while gold production at the company's Ezulweni mine was marginally higher quarter-on-quarter.
Production at the mine was expected to benefit significantly from the commissioning of an upgraded backfill plant in September 2010. Ezulweni already achieved record production in October and was set to do so in November as well.
First Uranium has set targeted production of 80 000 oz at its Ezulweni mine.
The company ended the quarter with $67,6-million in cash.
"First Uranium remains a company that is in a development phase, but I am exceptionally pleased with the progress made recently to ensure that we achieve our overall growth ambitions," concluded Van der Mescht.