Antinuclear

Precipitous fall in shares of world’s largest uranium miner

Shares in Cameco fell precipitously, as the company lowered its long term forecasts for the industry.

Cameco Sinks As Sales Drop Post-Fukushima – – Forbes, 4 Aug 11, As the nuclear energy and uranium businesses recover from the crisis that was the Fukushima Daiichi accident in Japan, Cameco posted second-quarter earnings that reveal big drops in revenue and profit. Despite hitting expectations, Cameco’s earnings sparked a sell-off given a more bearish look on their industry, …..

Revenue at the Canadian-headquartered uranium company fell 22% to $439 million on falling sales volume and the “variability of uranium demand.”  The company also noted the average cost of product sold increased, despite higher prices.  Cameco expects sales to be heavily weighted toward the second half of the year.

Cameco is the largest player in the highly volatile uranium space……
Apart from causing a massive impact in Japan’s economy, as well as disrupting global supply chains, the Fukushima Daiichi incident has put the uranium industry in an existential moment. (Read Uranium And Nuclear Stocks Fell The Shock Waves Of Fukushima Meltdown).
…….. Public outbursts against nuclear energy have caused Germany to wind down much of its nuclear program; Germany, with 17 reactors, represents 5% of global generating capacity….
Shares in Cameco fell precipitously, as the company lowered its long term forecasts for the industry.  By noon in New York, the uranium producer was trading down 4.6% or $1.17 to $24.55, below both its 200- and 50-day moving averages.
Cameco Sinks As Sales Drop Post-Fukushima – Agustino Fontevecchia – Moral Hazard – Forbes

August 5, 2011 - Posted by Christina Macpherson | Uncategorized