* Q3 gold sales down 5 pct
* Q3 uranium production down 14 pct
* Shares fall 20 pct
By Arnav Sharma
Jan 26 (Reuters) – First Uranium’s
third-quarter gold sales dropped 5 percent and uranium
production fell 14 percent from the prior quarter due to
accidents at its Ezulwini mine in South Africa, and the miner
cut its full-year gold production forecast, sending its shares
down as much as 20 percent.
The company, whose Ezulwini mine was affected by three fatal
accidents in the latter half of 2011, now sees 2012 gold
production at 98,000-100,000 ounces, down from its earlier
forecast of 105,000-115,000 ounces.
“Uranium numbers aren’t very important at this moment. It’s
gold that matters and that’s where large percentage of their
revenue is coming from, owing to higher spot gold prices,” BMO
Capital Markets analyst Edward Sterck told Reuters.
Spot gold prices on Thursday touched $1,729.76 per
ounce, a nearly seven-week high.
Continued…
