Uranium miner Energy Fuels Inc (NYSE MKT:UUUU, TSE:EFR) repeated production guidance of 950,000 pounds of uranium for 2016 as it posted increased revenues in its first quarter and says it aims to continue to try and lower costs.
Revenue for the three months to end March was $18.0mln compared to $7.6mln in the same period of 2016.
The net loss increased to $8.8mln versus a loss of $1.2mln a year ago.
This was mainly due to the $7.4 million in investments the firm is making for future production that it must expense, including shaft-sinking at its high-grade Canyon mine, construction of wellfields and an elution circuit at Nichols Ranch, and construction of leach tanks at its White Mesa Mill.
In the quarter, 350,000 pounds of uranium were sold at $51.36 per pound, the group said.
Energy Fuels president and chief executive Stephen Anthony told investors: "While the price of uranium has disappointed so far in 2016, Energy Fuels continues to pursue efforts aimed at lowering operating and other costs, while also advancing our long-term ability to ramp-up mineral extraction activities in the future.
"We continue to adjust our business plan to appropriately respond to uranium prices that are near multi-year lows today, but expected to rise significantly over the long-term.
"As such, we have made the decision to save significant cash in 2016 by planning to delay previously announced capital expenditures, including wellfield expansion at Nichols Ranch.
"While this decision is expected to lower production at Nichols Ranch by 50,000 pounds this year, White Mesa Mill uranium recoveries are now expected to be higher than originally forecast. Therefore, we are maintaining our previous guidance of 950,000 total pounds of uranium recovery in 2016."
The company boss added that it continued to pursue shaft-sinking and resource evaluation activities at its Canyon Project in Arizona, and later in the year, hopes to announce positive results at this low-cost project.
"Finally, we expect to lower our portfolio-wide cost of production upon the closing of our pending acquisition of Mestena Uranium, and its ISR production in South Texas.
"While long-term uranium market pricing is currently lower than the pricing contained in our four existing contracts, upon only a modest uplift in current long-term prices, Mestena will provide Energy Fuels with the potential to sign uranium sales contracts which meet targeted operating margins for the Company. As a result, Mestena is a key acquisition for Energy Fuels as we navigate today's challenging uranium markets."
As at March 31, the firm had $37.5 million of working capital, including cash of $16.5 million (not including an $8.3 million receivable that was paid in cash in April) and around 225,000 pounds of uranium concentrate inventory.