60% profit drop, shares fall, as Cameco uranium company affected by global nuclear slump
Cameco reduces production forecast, Globe and Mail, BRENDA BOUW — MINING REPORTER, VANCOUVER, Nov. 07, 2011 Uranium giant Cameco Corp. lowered its annual production forecast and reported third-quarter financial results below expectations amid continuing upheaval in the nuclear power industry.
Saskatoon-based Cameco, in a bidding war with Rio Tinto PLC for Hathor Exploration Ltd. during the current uranium price slump, cited “unfavourable market conditions” for the earnings underperformance…..
Production of uranium used to fuel nuclear power plants fell 5 per cent to 5.3 million pounds in the quarter, and for the year it is expected to drop 1 per cent to 21.7 million pounds, Cameco said. It also lowered guidance for UF6, a compound used to make enriched uranium, by 6 per cent….
profit fell 60 per cent…… Cameco shares closed down 6.5 per cent to $20.35 on the Toronto Stock Exchange on Monday, a sign investors are worried that Cameco will continue to suffer from volatility in the sector following the Japanese nuclear disaster.
“We expect the current uncertainly in the uranium market to linger for the near to medium term,” Mr. Gitzel warned.
Driving industry concerns are forecasts for excess uranium inventories in Japan and Germany, which represent 12 and 5 per cent of global nuclear generating capacity, respectively. Germany is phasing out its nuclear program, and Japan is operating only 11 of its 54 reactors since a tsunami and earthquake destroyed its Fukushima Daiichi nuclear plant this past March…..
China, too, is slowing its rapid nuclear power expansion plans as it takes extra measures to ensure its facilities are safe….
No comments yet.
1 This month
of the week – Disrupting War & Militarism in Oceania. Active solidarity. Radical practice.
Antinuclear 
Leave a comment