Cameco’s profit beats estimates on higher uranium sales

Cameco’s profit beats estimates on higher uranium sales

Reuters

Published Wednesday, Nov. 02, 2016 8:39AM EDT

Last updated Wednesday, Nov. 02, 2016 8:41AM EDT

 

Canadian uranium producer Cameco Corp on Wednesday reported a better-than-expected quarterly profit, largely helped by a jump in uranium sales volumes.

Cameco’s uranium sales rose 35 per cent to 9.3 million pounds in the third quarter ended Sept. 30, while its average realized uranium price fell 0.6 per cent to $43.37 (U.S.) per pound.

Chief Executive Tim Gitzel said though uranium prices are at the lowest levels in more than a decade, the company’s average realized prices were well above the market price thanks to its portfolio of long-term contracts.

However, Cameco warned that the uranium market would remain depressed until Japan’s nuclear reactors are restarted and excess supply is depleted, among other things.

The 2011 Fukushima meltdown led to shutdowns of all of Japan’s nuclear reactors, depressing the radioactive metal’s price. Some reactors have since come back online, but global uranium inventories remain high.

Cameco reported a net profit of $142-million (Canadian), or 36 cents per share, attributable to equity holders in the quarter, compared with a loss of $4-million, or 1 cent per share, a year earlier.

Excluding items, the company earned 30 cents per share, beating the average analyst estimate of 28 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 3.2 per cent to $670-million, beating analysts’ expectation of $654.9-million.

 

About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on November 2, 2016, in economic impact, uranium and nuclear. Bookmark the permalink. Leave a comment.

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