- Cameco (NYSE:CCJ) -7.4% premarket after reporting a larger than expected Q2 loss and 29% Y/Y revenue decline, and saying it will extend the suspension of production at its McArthur River and Key Lake uranium mines for an indefinite period.
- "We continue to expect to generate strong cash flow this year as we draw down inventory and focus on operating efficiently. However, we have not seen the improvement needed in the uranium market to restart McArthur River and Key Lake," CCJ President and CEO Tim Gitzel says.
- CCJ says the suspensions will result in the permanent layoff of ~550 site employees, including those on temporary layoff since January; ~200 employees will remain to maintain the facilities.
- In its updated FY 2018 outlook, CCJ sees revenues of C$1.89B-C$2.14B vs. C$1.95B analyst consensus estimate; in its uranium segment, CCJ forecasts delivery volumes of 34M-35M lbs. and expects to purchase an additional 2M-4M lbs. of uranium to meet delivery commitments and maintain target inventory.
- Now read: Uranium Mining: The Inflection On The Horizon
Original article