Cameco reports quarterly losses due to weak uranium prices
Uranium company expects weaker earnings in 2017 than last year
Cameco — one of the world's largest uranium producers — reported on Friday a quarterly loss and cuts to its production outlook due to weak uranium prices.
The Saskatchewan-based company reported net losses of $124 million this quarter, and adjusted net losses of $50 million. That's compared to a profit of $142 million at the same time last year.
"There has been little change to the market and we continue to face difficult conditions, with the average year-to-date uranium spot price down about 20 per cent compared to the 2016 annual average," said president and CEO Tim Gitzel.
Revenue for the company fell 27 per cent this quarter, from $670 million in 2016 to $486 million for the three months ended Sept. 30.
The company's uranium production volume and sales volume has also fallen. Cameco posted 3.1 million pounds of uranium produced for this year's quarter, compared to 5.9 million pounds this time in 2016.
However, sales volume has only fallen one per cent from 9.3 million pounds last year to 9.2 million pounds this year.
Cameco also lowered production outlooks for the year from 25.2 million pounds to 24 million pounds, due to production delays at the Key Lake mine.
Cameco expects 2017 net earnings to be weaker than in 2016, but Gitzel said they continue to generate solid cash flows and expect them to exceed the $312 million reported in 2016 despite weaker earnings.