Cameco Q1 report sees losses, quiet market
The company says results were influenced by the quiet market with little contracting activity
Cameco reported an adjusted loss for its first quarter financial results Friday morning, saying although there is a bright long-term future for nuclear power, it's been challenging so far for the uranium market.
In the report, the uranium producer saw a loss in total revenue, sitting at $408 million as compared to $566 million in 2015.
The profit attributed to equity holders for the first three months was $78 million, or 20 cents per diluted share for its first quarter.
But after adjustments, the company reported a loss of two cents per share, compared with 18 cents per share in 2015.
They said results were influenced by the quiet market with little contracting activity.
"You've seen us respond by exercising our strategy of flexibility when it comes to both sales and operations in a weak market," said Tim Gitzel, Cameco's president and CEO.
"And while that response has also contributed to the weaker first quarter results, we expect that the decisions to restructure NUKEM, to not force more mined production into an oversupplied market, and to purchase low-cost pounds where we see opportunities, will yield positive results over the medium to longer term."