Cameco Beats Analysts' Estimates as Uranium Sales Rise

(Corrects description of Fukushima incident in fifth paragraph.)

Cameco Corp. (CCO), the world’s largest uranium producer, reported first-quarter profit that topped analysts’ estimates as sales of the nuclear-reactor fuel rose.

Net income increased to C$132 million ($133.6 million), or 33 cents a share, from C$91 million, or 23 cents, a year earlier, the Saskatoon, Saskatchewan-based company said today in a statement. Profit excluding one-time items was 31 cents a share, topping the 25-cent average of 10 estimates compiled by Bloomberg. Sales increased to C$563 million from C$461 million.

Uranium sales rose to 8.1 million pounds from 6.1 million a year earlier, topping the 6.6 million estimated by Edward Sterck, a London-based analyst at Bank of Montreal. The average cost of uranium sales fell to C$31.97 a pound from C$32.21 a year earlier.

“Our full-year expectations for uranium sales volumes have been biased toward the end of the year,” Sterck said in an interview before the results were released. “Higher-than- expected sales could indicate the company sold more into the spot market.”

Increased uranium sales may help offset lower prices following last year’s tsunami and meltdown at Tokyo Electric Power Co.’s Fukushima Dai-Ichi nuclear power plant.

Cameco was unchanged at C$21.86 yesterday in Toronto. The shares have gained 19 percent this year.

(Cameco scheduled a conference call at 1 p.m. New York time that can be accessed by dialing +1-866-223-7781 or +1-416-340-8018, or at http://www.cameco.com.)

To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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