TORONTO (miningweekly.com) – Vancouver-based Uranium One narrowed its net loss for the second quarter, after increasing production during the three months to a best-ever 1,8-million pounds of uranium, more than double a year ago.

Shares in the company jumped 6% on Monday morning, to C$3,01 apiece by 10:28 in Toronto.

Uranium One reported a net loss of $9,7-million, compared with $264,9-million in the second quarter of 2009.

Excluding some once-off items, the company had an adjusted net loss of $1,3-million, from $12,9-million a year earlier.

Revenue increased by 256% to $66-million in the second quarter of 2010.

The average realised sales price during the period was $43/lb compared with $48/lb a year ago, and the average spot price of $41/lb.

Uranium One announced in June that Russian uranium miner ARMZ will increase its holding in the company to about 51%, in return for $610-million in cash and stakes in two Kazakh mines.

Uranium One currently produces all its uranium in Kazakhstan, but plans to start output from operations in the US in 2011.

The firm said on Monday it has increased its production guidance for this year to seven-million pounds, compared with a previous forecast of 6,8-million pounds, to reflect a better performance from the South Inkai mine.

Uranium One shareholders will vote on the ARMZ deal on August 31, and the deal is expected to close before the end of the year, CEO Jean Nortier said on a conference call.

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