Before the market opened this morning, Uranium Resources Inc. (NASDAQ:URRE) announced revenue of $4 million for the third quarter and a net loss of $14 million (-$0.25 EPS) due to lower sales and lower prices. The company’s share price has fallen 92% from its 52-week high of $14.07. This morning’s report won’t help that a bit.
In its outlook, Uranium Resources stated that it expects its two remainingwells to be depleted by the end of the first quarter of 2009, and thatthe company "does not plan to develop additional wellfields until thereis a recovery in uranium prices." The company’s president and CEO said,"Our objective is to reduce our cash requirements to a level thatallows us to sustain our reclamation activities, continue our assetmanagement and implement structural changes as needed without requiringthe capital markets over the next eighteen to twenty-four months."
There’s no way a company can go dormant for up to two years and expectshareholders to sit still. Uranium Resources is about to learn thatlesson. Somehow shares are up 3% on thin volume, although that looks above the current trading indications.
November 10, 2008