Cameco Reports Loss, Guidance Is Revised
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Cameco (NYSE:CCJ) reported yesterday a net loss of $17.46 million (C$23 million) in its second quarter.
Cameco is down 10% from Monday, dropping to $9.30 a share as of 3:40 p.m. EDT.
In its guidance section the company said its pricing terms are changing, which will negaitvely impact cost of sales and revenue. Average purchase price was revised to C$34.30 per pound, previously C$34.80 per pound.
Cameco expects to deliver more uranium, between 30 million and 32 million pounds. Previous estimates were 28 million to 30 million.
Cameco noted that care and maintenance costs are a financial drag and will cost the company between C$130 million and C$160 million in 2019. The company shuttered its McArthur River/Key Lake operations due to low uranium prices.
"Despite the impact on our expected results, we continue to believe these are the right decisions to create long-term shareholder value," writes the company, which is hoping to decrease worldwide supply so uranium prices can move up.