UPDATE 1-Uranium producer Cameco expects up to 5 pct fall in revenue

Wed Oct 29, 2014 10:28am EDT
 
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(Adds details from the statement, shares)

Oct 29 (Reuters) - Canadian uranium producer Cameco Corp said it expected full-year revenue to fall up to 5 percent as it trims production to account for labor issues at its mines.

Shares of the company, which reported lower-than-expected quarterly revenue, fell 4 percent to C$18.76 on the Toronto Stock Exchange on Wednesday.

Cameco trimmed its 2014 uranium production forecast to between 22.6 million-22.8 million pounds, from 22.8 million- 23.3 million pounds.

The company said it cut the production forecast to reflect the impact of labor issues at its McArthur River, Saskatchewan mine and Key Lake mill and lower-than-expected production from Cigar Lake mine.

The McArthur River mine, the company's biggest, was offline for two weeks during end August to early September due to a lockout.

The Cigar Lake mine began production in March but was shutdown in July due to a problem with a process that involves freezing the ore. Production resumed by September.

The Saskatoon, Saskatchewan-based company reported revenue of C$587 million ($527.3 million), lower than the average analyst estimate of C$628.9 million, according to Thomson Reuters I/B/E/S.

The company's average realized uranium price fell to $45.87 per pound from $50.73 in the year-ago quarter.   Continued...