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UPDATE 1-Cameco Q3 adjusted profit falls amid oversupply

Published 2015-10-30, 08:26 p/m
© Reuters.  UPDATE 1-Cameco Q3 adjusted profit falls amid oversupply
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(Adds detail, forecast, share price)
Oct 30 (Reuters) - Cameco Corp CCO.TO CCJ.N , the world's
second-largest uranium producer, reported lower adjusted
quarterly earnings on Friday, as an oversupply in the market
continued to affect demand and pricing.
The company said its quarterly profit, excluding one-time
items, was hurt by a smaller gross profit from its uranium
segment and lower tax recovery in the quarter ended Sept. 30.

Cameco's uranium sales fell about 23 percent to 6.9 million
pounds in the quarter, while its average realized uranium price
fell about 5 percent to $43.61 per pound.
On an adjusted basis, earnings fell to C$78 million, or 20
Canadian cents per share, compared with C$93 million, or 23
Canadian cents per share, a year earlier.
The oversupply in the uranium market continues to affect
demand and price, the company said, but reiterated its positive
long-term view, saying that its Cigar Lake, Saskatchewan mine
had exceeded its 2015 production target range.
The mine, which began production in March 2014, was expected
to produce 6 million to 8 million pounds of uranium concentrate
this year, the company had said in January.
Accordingly, Cameco raised its forecast for total production
to 27.3 million pounds of uranium in 2015, from a previous range
of 25.3 million to 26.3 million pounds.
Total revenue in the quarter rose about 11 percent to C$649
million.
Shares of Cameco, the world's second-largest uranium miner
behind Kazakhstan's KazAtomProm, were down about 9 percent in
very light aftermarket trade.

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