Company News

BUZZ-Cameco Corp: Mining suspension plans boost stock

** Uranium miner’s shares up 4.7 pct at C$12.04, set for their best day since February

** Co says to suspend production from the McArthur River mine, the world’s biggest uranium mine, and the Key Lake mill by the end of Jan because of low uranium prices

** “It does not make economic sense for us to continue producing,” CEO Tim Gitzel says, citing an oversupplied market with and no likelihood of easing any time soon

** Uranium industry is in a six-year tailspin, with spot uranium price tumbling about 63 pct since 2011 tsunami

** TD Securities expects upward pressure on prices in the coming days due to Cameco’s move, but says for sustainable price gains, other producers will also have to cut supply

** For Cameco, TD says a 10-month shutdown would lower inventory by ~13 mln pounds, leaving it with ~15 mln pounds, near the preferred level of ~six months of sales

** Brokerage keeps “buy” rating on CCO, raises PT by C$2 to C$15 on likelihood of higher uranium prices

** Stock cuts YTD losses to ~14 pct from ~18 pct after today’s gains (Reporting by Anirban Paul in Bengaluru)