JOHANNESBURG (miningweekly.com) – JSE- and TSX-listed Uranium One on Monday reported a net loss of $9.5-million for the first quarter ended March 31.

This was down from earnings of $4.5-million recorded in the comparative period the year before.

The group, which owns assets in Kazakhstan, the US, Australia and Tanzania, recorded a 60% drop in earnings from mine operations, including joint ventures (JVs), reaching $19.6-million during the first quarter, compared with the $49.3-million achieved in the corresponding period the year before.

Revenue for the period dipped to $5.2-million, from $5.3-million in the first quarter of 2012, while its JV operations contributed revenue of $57.4-million, down from the $90.6-million earned in the comparative quarter last year.

Uranium sales also declined year-on-year with 1.38-million pounds of uranium sold at an average price of $45/lb in the first quarter, compared with the 1.8-million pounds sold at $53/lb in the first quarter of 2012.

The company recorded a 10% year-on-year rise in production during the three months, but its total cash costs also went up, increasing by 21%.

About 3.01-million pounds of uranium were produced at an average total cash cost of $17/lb during the three months under review, compared with the 2.57-million pounds produced at a cost of $14/lb in the first quarter in 2012.

The company said it expected to produce about 12.5-million pounds of uranium at a cost of $19/lb this year, and 13-million pounds in 2014.

However, the company warned that the year ahead would be capital intensive as it incurred capital expenditure of $164-million on its assets in Kazakhstan, the US and Australia.

About $98-million was allocated for wellfield development, and the remaining $66-million for plant and equipment.

Uranium One noted that general and administrative expenses – excluding noncash items – were expected to reach about $40-million.

Exploration expenses were expected to reach $8-million.