July 27 (Reuters) - Cameco Corp CCO.TO CCJ.N, the world's second-largest uranium miner, reported a small quarterly loss and said it settled a tax dispute with the U.S. Internal Revenue Service for much less than initially proposed.
The company said it would have to pay $122,000 to settle the dispute, compared with the originally proposed tax expense of $122 million.
Cameco's net loss attributable to equity holders was C$1.56 million ($1.25 million) in the second quarter ended June 30, breaking even on a per share basis.
In the year earlier quarter, it posted a loss of C$137.4 million, or 35 Canadian cents, mainly due to a C$124.4 million impairment charge. latest quarter was impacted by the loss of a contract with the Tokyo Electric Power (Tepco) 9501.T , the operator of Japan's wrecked Fukushima nuclear plant, in February.
Changes in the Saskatchewan corporate tax rate and weak uranium prices also pressured earnings, Cameco said.
The company said it was addressing low uranium prices by reducing uranium supply and avoiding selling into a weak spot market among other measures.
Analysts on average had expected second-quarter loss of 2 Canadian cents a share, according to Thomson Reuters I/B/E/S.
The company also cut its full-year capital expenditure plan to C$175 million from C$190 million, mainly due to a reduction in spending in its mine in McArthur River, Saskatchewan, the world's largest uranium mine.
Revenue rose 1 percent to C$469.7 million.
The company's uranium sales rose 32.6 percent to 6.1 million pounds in the quarter, while average realized uranium price fell 14.9 percent to $36.51 per pound.