Cameco Profits Take Hit

Cameco Profits Take Hit

Friday, August 13, 2010 at 13:25

 

 

Cameco’s net earnings are down substantially from this time last year.

 

The uranium company’s second quarter net earnings were $68 million.

 

That compares to $247 million this time last year.

 

For the first six months of the year, the net earnings were $211 million — compared to $329 million in 2009.

 

As a result, Cameco says it expects to earn 10% to 15% less money this year than expected.

 

Chief financial officer Kim Goheen says its due to some customers deferring deliveries until 2011, as well as fewer spot market sales than forecasted.

 

Goheen says the company’s earnings for the rest of the year will be “heavily weighted” in the fourth quarter.

 

Meanwhile, company officials say work continues at the Cigar Lake mine, which has flooded multiple times, and production is still set to begin mid-2013.