LEWISVILLE, Texas--(BUSINESS WIRE)--Uranium Resources, Inc. (NASDAQ: URRE - News) (“URI”), a uranium exploration, development, mining and production company, announced today its financial results for the first quarter of 2008, which ended March 31, 2008.Revenue for the first quarter of 2008 increased 25.3% to $5.7 million, compared with $4.6 million during last year’s first quarter. During the quarter, URI sold 81,100 pounds of uranium, a 1.8% increase from the 79,700 pounds of uranium sold in first quarter of 2007. URI received an average sales price per pound of $70.66 in the first quarter of 2008, up $13.25 per pound compared with an average per pound price of $57.41 in the same period last year. Sales were lower than the 113,000 pounds sold at an average price of $72.72 per pound in the trailing fourth quarter of 2007.
The average cost of pounds sold in the first quarter of 2008 was $50.02 compared with $41.08 in the first quarter of 2007 and $38.72 in the trailing fourth quarter. Cost of sales includes operating expense and depreciation, depletion and amortization (DD&A), but excludes royalties and commissions. Higher costs were the result of lower levels of production from less prolific wellfields, new production from higher cost areas such as Vasquez and additional costs associated with pre-operating activities related to the start-up of new wellfields at Vasquez and Rosita. Finished uranium inventory was 23,100 pounds at March 31, 2008, held at an average cost of $36.41 per pound.
Dave Clark, president and CEO of URI, commented, “Although production delays at our Texas wellfields adversely impacted our uranium sales and drove our cost of production higher during the first quarter, we expect increased levels of production in the second quarter to drive production cost lower."
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