Cameco Earnings Miss Estimates Amid Drop in Energy

Cameco Corp., the world’s second-largest uranium producer, reported fourth-quarter earnings that trailed analysts’ estimates after the price of the raw material in nuclear fuel tumbled amid a global commodities rout.

The company reported a net loss of C$10 million ($7.2 million) from profit of C$72.7 million a year earlier, the Saskatoon, Saskatchewan-based company said Friday in a statement. Earnings excluding one-time items were 38 cents a share, missing the 47-cent average of 11 estimates compiled by Bloomberg. Sales increased to C$975 million from C$889.2 million a year earlier. The company reported a writedown of C$210 million related to its Rabbit Lake operation.

“The impairment was due to increased uncertainty around future production
sources for the Rabbit Lake mill as a result of the ongoing economic conditions,” the company said in the statement.

Average fourth-quarter uranium prices fell 4.4 percent to $36.08 a pound as global energy prices slumped and competition increased from other forms of power generation in the U.S., the biggest nuclear-energy user.

Kazatomprom, Kazakhstan’s state-owned producer, is the biggest uranium miner, according to the World Nuclear Association.

(Cameco scheduled a conference call to discuss results on Monday at 11.a.m. New York time at +1-800-769-8320 or +1-416-340-8530.)

(Corrects second paragraph to add dropped word million.)
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