nuclear-news

Uranium market uncertainty causes Cameco to cut its expansion plans

Expected nuclear construction cuts, prompts Cameco project paring  Recent developments in the nuclear industry, specifically in Japan, have caused more uncertainty over the growth rate of nuclear power globally, prompting Cameco to adjust its production forecasts. Mineweb Dorothy Kosich  , 01 Nov 2012  Ongoing market uncertainty in the near term has prompted mega-uranium miner Cameco to seriously tighten its project portfolio and drop four million pounds of future targeted uranium production….. In its analysis, Cameco noted that recent developments in the nuclear industry, primarily in Japan, have caused more uncertainty in the growth rate of nuclear power globally…… Cameco’s uranium production volumes remained flat for the third quarter of the year at 5.3 million pounds. However, the company also recorded a 29% decrease in sales.

Production for the first nine months of this year were also lower at 15.4 million pounds, down from 15.8 million pounds for the same period of 2011. The lower output as attributed to lower production at Smith Ranch-Highland and Inkai.

Uranium revenues also dropped 5% during the first three quarters of this year, due to a 5% decrease in sales volumes. “Our $US realized prices were lower than the first nine months of 2011 mainly due to lower prices under market-related contracts being offset by a more favorable exchange rate,” said the company….. FINANCIALS

For the first nine months of this year, Cameco reported adjusted net earnings of $210 million or 53-cents per share, down from adjusted net earnings of $259 million or 66-cents per share. The change was due to lower earnings from the uranium business based on lower sales volumes, lower realized prices and higher costs; a $30 million contract termination change, as well as higher exploration and administration costs.

November 2, 2012 - Posted by Christina Macpherson | business and costs, Uranium