Customer cuts Uranium deliveries

The largest customer of Uranium Resources (TSE) has reduced significantly the amount of 1993 deliveries.

The company says the client has cut back its requirements for its nuclear reactors to 72,000 lb. from 240,000 lb. for the year. Uranium Resources estimates a decrease in net income in 1993 of US$2-2.5 million and a decrease in cash flow of about US$3 million because of the cutback.

Uranium Resources says it believes there will be no effect on deliveries in 1994 under this contract, but is unable to predict the effect on deliveries in 1995, the last year of the contract.