October 29, 2014 / 2:33 PM / 4 years ago

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

(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.

Cameco, which has contracts at prices above the spot market, sold 9 million pounds in the third quarter ended Sept. 30, up from 8.5 million pounds.

On an adjusted basis, the company earned 23 Canadian cents per share, slightly higher than the average analyst estimate of 21 Canadian cents per share.

The company reported a net loss attributable to equity holders of C$146 million, or 37 Canadian cents per share, compared with a year-ago profit of C$211 million, or 53 Canadian cents per share.

The net loss was mainly due to a C$184 million impairment charge related to an investment in GE-Hitachi Global Laser Enrichment, Cameco said.

Cameco’s U.S.-listed shares were trading down 3.8 percent at $16.82 on the New York Stock Exchange in morning trading. (1 US dollar = 1.12 Canadian dollar)

Reporting by Rod Nickel in Winnipeg, Manitoba and Sneha Banerjee in Bangalore; Editing by Sriraj Kalluvila

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