uranium ones dominion mine extends closure

Uranium One mine strike seen as protracted
Wed Oct 15, 2008

http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN1533008420081015

TORONTO, Oct 15 (Reuters) - A strike at Uranium One's Dominion mine in South Africa could go on for quite some time and prompt the company to cancel uranium shipments, said an analyst on Wednesday who cut his price target on the company's shares by more than 60 percent.

The mine was shut down last week after most of its work force walked off the job in what the company said was an illegal strike.

Uranium One said unionized workers have refused to return to work despite a court order, and it has begun firing the employees and exploring "all options available" for the mine.

"We expect the strike may be protracted," Raymond James analyst Bart Jaworski said in a research note, adding that the labor upheaval could allow the company to declare 'force majeure' on the unproduced portion of contracted deliveries this year.

He chopped his 12-month price target on the company's stock to C$1.90 from C$5.00, but upgraded the stock's rating to "outperform" from "market perform", based on the recent dive in Uranium One's shares.

He said the price-target cut was due both to operational risks and to deteriorating market conditions.

The stock was down 2 Canadian cents at 87 Canadian cents on the Toronto Stock Exchange, a drop of 80 percent since the end of August and down 90 percent so far this year.

Jaworski said the mine, which is in ramp-up mode, represents 30 percent of his projected 2010 cash flow for the company.

The mine had been expected to produce 320,000 pounds of uranium this year.
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WORLD SUPPLY DISRUPTIONS CONTINUE
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1/ Cigar Lake ~ mothballed (almost).

2/ Energy Resources Ranger Mine Production Declines.

3/ Uranium One suspends operations at its Dominion Mine.

4/ Heathgates Beverly Mine to which has constant declining Production, & is awaiting AGS's FME Resource.

5/ Paladins Langer Heinrich, has now reached its maximum stage one production level. Its my understanding they're unable to ramp up further until their stage 2 expansion is completed.
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