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« Portfolio Update 21 May 2008 | Main | Aurora’s community outreach programme lifts stock 11.58%! »

URANIUM ONE: Suspends Honeymoon uranium mine

Uranium one logo 21sep07

In its quarterly report Uranium One has said that the development of the Honeymoon uranium mine, northwest of Broken Hill, has been suspended until a development partner can be found. Executive vice-president Australia and Asia Greg Cochran is quoted as follows:

"What we're doing is we've recognised we need to have a bigger portfolio, and so that, together with sharing some of the cost of development with a partner, has meant that we're moving in the partner mould. It does mean a postponement of course of what is currently going on at Honeymoon but that's just until we get through this stage."

According to the Adelaide Now the company has appointed Rothschild’s to advise on the many options available to them. The mine is not for sale it is just a matter of finding a suitable partner, or partners to share the project with them. If offered for sale it is estimated that the mine would be worth between $100 million and $200 million. This mine is expected to produce about 400,000kg of uranium oxide a year for seven years. If a partner can be found then this would free up resources for the company to expand its Australian uranium portfolio, at the same time it will continue to focus on its three core assets in South Africa, the U.S. and Kazakhstan. Work has commenced on the supporting infrastructure including power, roads, accommodation, etc.

With nuclear power not being the current flavour of the month we expect to see more ‘partnering’ going forward in order to make the best use of financial resources.

Have a good one.

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