Cigar Lake Faces New Delay

Poor Cameco!  Only a $91,000,000 third quarter profit as opposed to $95,600,000 last year.  And delays at Cigar Lake threatening fourth quarter profits.  It’s tough being a global greed, isn’t it?

Cameco Says Sales to Fall; Cigar Lake Faces New Delay (Update5)
By Christopher Donville and Yuriy Humber

Oct. 31 (Bloomberg) — Cameco Corp., the world’s largest uranium supplier, said fourth-quarter revenue will be squeezed by lower prices and production at its Cigar Lake mine in Canada will be delayed until at least 2011.

Sales will decline about 10 percent from the third quarter, Saskatoon, Saskatchewan-based Cameco said today in a statement. Uranium spot prices have declined 39 percent since June as some nuclear utilities suspended purchases.

Cigar Lake, which was originally scheduled to begin operations this year and supply about a 10th of global consumption, or 18 million pounds of uranium, flooded a year ago after a rock fall. Draining and repairs to the mine, the world’s biggest untapped source of uranium, are taking longer than forecast because of the need to dig a second shaft, Cameco said.

The delay is “a slight negative for Cameco and a slight positive for the price of uranium,” Kenneth van der Vlugt, a senior vice president with Raymond James Financial Inc., which brokers uranium, said by phone from Dusseldorf, Germany.

Cameco fell C$1.63, or 3.4 percent, to C$46.55 at 4:24 p.m. in Toronto Stock Exchange trading. The shares have fallen 1.4 percent this year, valuing the company at C$16.5 billion.

Cameco’s third-quarter profit climbed to C$91 million ($95.6 million), or 25 cents a share, from C$73 million, or 20 cents, a year earlier, the company said in the statement. Sales rose 89 percent to C$681 million.

Sales Outlook

The company expects fourth-quarter sales will be less than the third quarter’s because of a likely drop in uranium sales volumes and a decline in the average price, Cameco said. Sales were expected to rise to C$686.7 million, based on the average estimate of four analysts surveyed by Bloomberg.

Sales in the fourth quarter of 2006 were C$512 million.

Couldn’t happen to a more unethical bunch!


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