October 31, 2015 / 12:30 AM / 3 years ago

UPDATE 1-Cameco Q3 adjusted profit falls amid oversupply

(Adds detail, forecast, share price)

Oct 30 (Reuters) - Cameco Corp , the world’s second-largest uranium producer, reported lower adjusted quarterly earnings on Friday, as an oversupply in the market continued to affect demand and pricing.

The company said its quarterly profit, excluding one-time items, was hurt by a smaller gross profit from its uranium segment and lower tax recovery in the quarter ended Sept. 30.

Cameco’s uranium sales fell about 23 percent to 6.9 million pounds in the quarter, while its average realized uranium price fell about 5 percent to $43.61 per pound.

On an adjusted basis, earnings fell to C$78 million, or 20 Canadian cents per share, compared with C$93 million, or 23 Canadian cents per share, a year earlier.

The oversupply in the uranium market continues to affect demand and price, the company said, but reiterated its positive long-term view, saying that its Cigar Lake, Saskatchewan mine had exceeded its 2015 production target range.

The mine, which began production in March 2014, was expected to produce 6 million to 8 million pounds of uranium concentrate this year, the company had said in January.

Accordingly, Cameco raised its forecast for total production to 27.3 million pounds of uranium in 2015, from a previous range of 25.3 million to 26.3 million pounds.

Total revenue in the quarter rose about 11 percent to C$649 million.

Shares of Cameco, the world’s second-largest uranium miner behind Kazakhstan’s KazAtomProm, were down about 9 percent in very light aftermarket trade. (Reporting by Rod Nickel in Winnipeg and Ismail Shakil and Natalie Grover in Bengaluru; Editing by Ken Wills)

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