Cameco Cuts Forecast on Outlook for Uranium

Cameco Corp (TSX:CCO) announced it was cutting its full-year revenue forecast, estimating 2014 sales fell as much as five percent.

According to Bloomberg:

Cameco’s revenue may drop primarily because of lower third-quarter sales at its Nukem trading unit. Nukem’s full-year uranium sales will be 7 million to 8 million pounds, compared with a previous forecast of 7 million to 9 million.

That decline will translate into a 25 percent to 30 percent drop in Nukem’s revenue “due to the ongoing weakness in the uranium market,” according to the statement.

Tim Gitzel, chief executive officer of Cameco, said in a statement:

While Japan is edging ever closer to restarting some reactors, it’s clear that the restart approval process will continue to be challenging. Nothing fundamental has changed in the uranium market for the near term.

Click here to read the full article.