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Cameco Cuts Forecast for Uranium Trading Unit

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Aug. 1 (Bloomberg) -- Cameco Corp., the world’s third-largest uranium producer, will sell less of the nuclear fuel via its German trading unit than previously planned because of the decline in the price of the commodity.

Sales volumes will be 8 million to 10 million pounds, down from an earlier projection of 9 million to 11 million, the Canadian company said today in a statement. It now sees the unit’s 2013 sales at C$450 million ($435.2 million) to C$550 million, from C$500 million to C$600 million previously.

Cameco bought Nukem Energy GmbH for 107 million euros ($142 million) in January and assumed about 79 million euros of net debt, according to the statement, to boost sales of uranium from non-mining sources such as decommissioned nuclear warheads.

Uranium spot prices have fallen 27 percent in the past year amid delays in resuming electricity output from nuclear power plants in Japan following the March 2011 earthquake and tsunami.

Second-quarter net income rose to 9 Canadian cents a share from 1 cent a year earlier, Saskatoon, Saskatchewan-based Cameco also said in the statement. Excluding derivative losses and other one-time items, profit was 15 cents, missing the 18-cent average of 14 analysts’ estimates compiled by Bloomberg.

Sales rose 49 percent to C$421 million, trailing the C$555.8 million average of eight estimates.

The shares fell 1.6 percent to C$20.53 in Toronto.

Uranium for immediate delivery was at $36.50 a pound yesterday, according to data compiled by Metal Bulletin.

Cameco is the largest uranium producer after KazAtomProm, Kazakhstan’s state-run nuclear entity, and Areva SA of France, according to the World Nuclear Association.

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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