Cameco shares jump after uranium production cuts
WINNIPEG, Manitoba, April 22 (Reuters) - Shares of Canadian uranium miner Cameco Corp jumped 6 percent on Friday, after the world's second-largest producer made production cuts that look to bolster sagging prices of the radioactive metal.
Cameco said on Thursday evening it would suspend production at its Rabbit Lake, Saskatchewan operation, and reduce production in the United States and at McArthur River, Saskatchewan, the world's biggest uranium mine.
The cuts reduce global supply by about 2 percent, and will likely support spot uranium prices in the oversupplied market, said BMO analyst Edward Sterck in a note.
The 2011 Fukushima meltdown led to shutdowns of all of Japan's nuclear reactors, sending uranium prices into a five-year funk.
Cameco stock rose 6.4 percent and 5.8 percent to $13.09 and C$16.57 in New York and Toronto, respectively. U.S. uranium producer Energy Fuels Inc shares climbed 1.7 percent to C$3.00. (Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Meredith Mazzilli)
© Thomson Reuters 2017 All rights reserved.