Uranium One Cuts Production Forecast 32%; CEO Resigns

(Bloomberg) — Uranium One Inc., the developer of South Africa’s largest deposit of the nuclear fuel, cut its 2008 output forecast by a third and said Chief Executive Officer Neal Froneman quit. The shares lost almost a quarter of their value.

A slower-than-expected rate of underground development at the Dominion mine in South Africa was the main reason for the revision, the Toronto-based company said in a statement to Johannesburg’s stock exchange today. Uranium One now estimates production this year at 3.15 million pounds, and cut its 2009 forecast 15 percent to 6.8 million pounds.


“We’re removing 1.5 million pounds that the market anticipated having” this year, Executive Vice President of Business Development Jean Nortier, appointed interim CEO, said from his mobile phone today.

Uranium One fell as much as 24 percent to C$4.90 in Toronto trading and was at C$5.20 as of 11:52 a.m. local time.

Bloomberg